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Sedbober [7]
3 years ago
13

Suppose that due to a fear that the United States is about to enter a long period of stagnant growth, stock prices fall by 50% o

n average. Predict what would happen to spending by consumers.
Business
1 answer:
densk [106]3 years ago
6 0

Answer:

spending would increase

Explanation:

Disposable income is either saved (invested) or spent.

If stock prices are expected to fall, individuals would be less willing to save their income and would prefer to spend their income instead.

As a result, spending would increase

You might be interested in
Proposed by Richard Hackman and Greg Oldham, ________ states that work has five core dimensions that impact employee satisfactio
kodGreya [7K]

Answer:

job characteristics model

Explanation:

The job characteristics model refers to the model in which it includes 5 characteristics  or attributes i.e variety of skills, the identity of task, significance or importance of task, autonomy and the feedback

Based on these factors the performance of employees could be analyzed via department wise, project wise, etc so that it became easy for the company to take the decision which employee should be beneficial or which is not

5 0
4 years ago
Potter & Lopez Inc. just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12
AfilCa [17]

Answer:

$3.76

Explanation:

Calculation of the implied value of each warrant

First step is to find the straight-debt value

Straight-debt value:

N = 20

I/YR = 15

PMT = −120

FV = −1000

PV = $812.22

Using this formula

Total value = Straight-debt value + Warrant value

Where,

Total value =$1,000

Straight-debt value=$812.22

Warrant=50

Let plug in the formula

$1,000 = $812.22 + 50

Second step is to find the warrant value

Warrant value= ($1,000 −$812.22)/50

=$187.78/50

=$3.7556

Approximately $3.76

Therefore the implied value of each warrant will be $3.76

4 0
3 years ago
A(n) is a long-term contract under which a borrower agrees to make payments of interest and principal on specific dates. There a
Shalnov [3]

Answer:

Bond, Treasury and Risk are the correct words that can satisfy the statements given.

Explanation:

A(n) bond is a long-term agreement under which a borrower allows to make installments of interest as well as principal on particular dates as we know this is a definition of bound. So the word bond satisfies the statement requirement.

There are four main types reflecting who the issuers are: treasury, corporate, municipal, and foreign. Each type differs with respect to risk and expected return. All have some common characteristics even though they may have different contractual features. Here in the second statement, the word treasury satisfies the statement requirement as we know that (Treasury Securities. Bonds, notes as well as bills announced by the United Statement government are frequently known as “Treasuries” and are the maximum-quality securities accessible.)

Correct words complete the sentences and we can understand the statements easily.

8 0
3 years ago
You are bullish on Telecom stock. The current market price is $48 per share, and you have $9,600 of your own to invest. You borr
Gekata [30.6K]

Answer: 7%

Explanation:

The following can be deduced.from the question:

Loan amount = $9,600

Equity = $9,600

Market price = $48 per share

Total investment = $19,200

Growth of Investment = 5%.

We then calculate value of the investment in a year. This.will be:

= 19,200 × 1.05

= $20,160

Interest on the loan would be:

= $9,600 * 0.03

= $288

Therefore, rate of return will be:

= (20,160 - 9,600 - 288)/9,600 - 1

= 0.07 = 7%

8 0
3 years ago
A purposeful systematic process for collecting information on the important work related aspects of a job is called job descript
makvit [3.9K]

Answer:

F

Explanation:

7 0
3 years ago
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