Answer:
The multiplier is useful in determining the change in GDP resulting from a change in spending
Explanation:
A change in autonomous spending will lead to a much larger final change in real GDP because of the multiplier effect. That spending will have a much larger final impact on real GDP.
Answer:
The answer is: Extended problem solving
Explanation:
Extended problem solving involves an elaborate decision-making process in which a consumer (Lexi) will try to get as much information as possible on all her available options (possible gifts) and then decide which option (gift) will . be better.
Consumer usually take this approach on issues they consider very important and of high risk. Lexi knows her sister´s graduation is important and doesn´t want to look bad.
Answer:
C). It requires that the funds be kept in the account for a minimum fixed period of time e.g. 90 days
<u>Multiple- choices</u>
A). You have to earn at least $100,000 in salary to be allowed to buy a CD
B). It is just a different name for a savings account
C). It requires that the funds be kept in the account for a minimum fixed period of time e.g. 90 days
D). Only large banks offer them
Explanation:
Banks and other financial institution offer certificates of deposit (CD) saving account to customers who intend to limit the number of withdraws. This type of savings account pays a higher interest rate than the regular savings account. A customer wishing to open this account agrees with the bank on the duration that they want to save the money. Withdrawals can only be made after the agreed period lapses. Should the customer demand for their money before the end of the agreed period, they may get penalized by the banks.
What Muhammad found unsatisfactory about the Certificate of deposit is that the return on the investment was too low.
Basically, a certificate of deposit is under a Short term investment instrument which yields low interest value for investors.
The Short term investment yields on investment are low because it is for short period of time and involves lesser risks. Other instruments under Short term investment includes Money market etc.
Therefore, the option C is correct because the Certificate of deposit was seen as unsatisfactory by Muhammad because the return on the investment was too low.
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Answer:
c) relatively high variable costs
Explanation:
Operating leverage is a ratio that is used to analyze and understand the cost structure of a business. It gives the relation between the variable and fixed cost to the the total cost of running the business.
A business with a large amount of fixed cost relative to variable is said to have a high operating leverage . For such business, operating income would be more volatile because the operating income would not increase in commensurate proportion as sales revenue.
And a company with low operating leverage has low amount of fixed cost relative to variable cost and therefore a relatively high variable costs
Operating leverage is calculated as
Contribution /Earnings before interest and Tax