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3 years ago

Critics of stabilization policy argue that:__________

Business

1 answer:

satela [25.4K]3 years ago

6 0

Answer:

All of the above are correct.

Explanation:

Critics of stabilization policy argue that there is a lag between the time policy is passed and the time policy has an impact on the economy, the impact of policy may last longer than the problem it was designed to offset and policy can be a source of, instead of a cure for, economic fluctuations.

We require stabilization policy to keep economy stable. Contractionary policies during inflation and expansionary during recession keeps the economy stable. But there is time lag between policy required and acted upon because it takes time to understand the situation and making and implementing the policy.

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Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own;

valentinak56 [21]

A)Degree of operating leverage=Contribution/EBIT

=6400,000/2140000=2.99.

B) Degree of operating leverage=Contribution/EBIT

=5600,000/1340000=4.18

C) Degree of operating leverage=Contribution/EBIT

=7600,000/1015000=7.49

One conclusion that companies can draw from examining operational leverage is that companies that minimize fixed costs can increase profits without changing selling prices, contribution margins, or unit sales.

The Operating Leverage formula is used to calculate a company's break-even point, helping to set a reasonable selling price that covers all costs and produces a profit. This gives you insight into how well your company is using fixed-cost items such as inventory and machinery to make a profit. The more profit a company can extract from the same amount of fixed assets, the higher its operational leverage.

Learn more about operating leverage at

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2 years ago

You plan to purchase a $330,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 8.00

neonofarm [45]

Answer:

Please see attachment

Explanation:

Please see attachment

4 0

3 years ago

What is monetary policy? A.Monetary policy is policy set by the central bank to influence the amount of money and credit availab

kakasveta [241]

Monetary policy is policy set by the government to influence the amount of money and credit available in the economy

The Fed Reserve Bank controls interest rates and inflation rates to help encourage spending or borrowing and saving. Usually they will lower interest rates if they want to encourage spending and they will raise them if they want people to save more.

6 0

3 years ago

Fixed costs included in this income statement are $2,000 for meal production and $400 for administrative costs. Maria has receiv

Olenka [21]

Answer:

While the special order generates a positive differential cost of $15

It should be rejected.

As this is an insignificant reward (15 / 1,000 = 1.5%)

considering the effort needed (300 / 2,000 = 15% production)

We increase production by 15% to increase our income by 1.5%

Any deviation from the expected cost will turn the project into a negative outcome the project is not useful for the current cost structure.

Explanation:

MISSING INFORMATION

TOTAL /// Per Unit

Sales revenue $10,000 $ 5.00

Costs of meals 8,000 4.00

Gross profit 2,000 1.00

Administrative costs 1,000 0.50

Operating profit 1,000 0.50

Fixed Cost

2,000 meal production

400 administrative cost

Variable cost:

unit sold: 10,000 / 5.00 = 2,000

Total Cost: 9,000

Less fixed of 2,400

Variable cost 6,600

6,600 / 2,000 units = 3.3 per unit

Special order:

Sales revenue 3.35 x 300 = 1,005

Cost per unit: 3.30 x 300 = 990

revenue 15

7 0

3 years ago

Policies that require countries to privatize state-run firms, end subsidies, reduce tariff barriers, shrink the size of the stat

Nataliya [291]

Answer is Structural adjustment.

Structural adjustment is arrangements of progression; obliged nations to privatize state-run firms, end endowments, diminish duty boundaries, recoil size of state, welcome remote venture; answer for monetary problem of less created countries, state had excessively turn in market so the state ought to pull back, IMF took after the possibility that a littler state is better for the economy (less direction, unhindered commerce, diminished estimation of cash)

8 0

3 years ago