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nignag [31]
3 years ago
6

Keynesian theory is based on the concept that saving and consumption are influenced primarily by real current disposable income.

saving is influenced primarily by the interest rate. planned savings equal planned investment only at full employment. full employment is automatically attained in any economy.
Business
1 answer:
Sonbull [250]3 years ago
4 0

Answer:

saving and consumption are influenced primarily by real current disposable income

Explanation:

keynesian economics is a known form of economics that is of demand-side in the sense that it encourages government action to increase and decrease demand and output.

Consumption is using ur money by spending it on new goods and services out of a household's current income.

While Saving is simply not eating up or the act of not consuming all of one's current income. Keynes argument was that the interest rate is not the most necessary factor in saving and consumption decisions. Rather, real saving and consumption decisions depend primarily on a household's real disposable income

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Acme Manufacturing is producing $4,000,000 worth of goods this year and expects to sell its entire production. It also is planni
Gemiola [76]

Answer:

a.$1,650,000 $1,500,000

b. $1,500,000 $1,500,000

c.$1,300,000 $1,500,000

Assuming that Acme’s situation is similar to that of other firms, output will equal to short-run equilibrium output in CASE B

Explanation:

Actual Investment, Planned investment

a.$1,650,000 $1,500,000

b. $1,500,000 $1,500,000

c.$1,300,000 $1,500,000

Assuming that Acme’s situation is similar to that of other firms, output will equal to short-run equilibrium output in CASE B

Acme’s planned investment in every case is $1,500,000.

Therefore the key to this problem is to find the amount of unplanned inventory investment Acme makes then add this to their planned investment to find Acme’s actual investment

a. If Acme sells $3,850,000 worth of goods, it has unplanned inventory investment of $150,000 and total actual investment of $1,650,000.

$4,000,000-$3,850,000=$150,000

$1,500,000+$150,000=$1,650,000

b. If Acme sells $4,000,000 worth of goods as it planned, its actual investment of $1,500,000 isequal to its planned investment

$4,000,000-$4,000,000= $0

$0+$1,500,000=$1,500,000

c. If Acme sells $4,200,000 worth of goods, it must draw down $200,000 worth of goods from itsexisting inventory, implying that inventory investment is –$200,000.

$4,000,000-$4,200,000= -$200,000

Acme’s actual investment in this case is $1,500,000 – $200,000 = $1,300,000.

Output equals short-run equilibrium output in CASE B , so planned spending and actual spendingare equal.

8 0
3 years ago
Some people believe that the right of privacy should be extended to the workplace. Others feel that, on the contrary, such an ex
PSYCHO15rus [73]

Explanation:

This discussion about organizations monitoring employee behavior can be related to ethical and unethical issues.

The ideal is for the company to have a set of well-defined policies and procedures with regard to the rights and duties of employees, as long as the policies have ethical and legal foundations, which guarantee the right to privacy and human integrity.

Therefore, the monitoring of the employee's behavior must always be related to their functions, and to the fulfillment of internal policies.

6 0
3 years ago
According to MM proposition II, as debt increases. the firm's return on assets remains constant even while its return on equity
MissTica

Answer:

<u>decreases</u>

Explanation:

As per modigliani- miller approach, the value of a firm is not dependent upon the choice of capital structure of the firm.

Capital structure refers to the the blend or mix of different sources of capital a firm avails to raise funds. Such as debt and equity.

As per MM proposition 2, the expected yield of a stock is equal to equity capitalization rate plus an additional compensation for risk assumed by employment of debt in the capital structure due to which the debt-equity ratio rises.

As proportion of debt is increased in the capital structure, the earnings available to stockholders rise but this rise is offset by the rise in the expectation of shareholders which offsets the effect and thus value of firm remains the same.

Return on equity is given by  \frac{net\ income}{stockholders\ equity}

Thus, as the return on equity increases , the amount of equity in capital structure decreases as this net income rises owing to employment of more and more debt in the capital structure.

4 0
3 years ago
Discuss the misconception and the contradiction in the curriculum for pre vocational subject ​
docker41 [41]

Answer:

<em>Pre-vocational education</em> in general aims to make students prepared for a specific vocation, but not in a technical manner. This education often relates to subjects such as time management, workplace ethics, personal financial management, etc.

In general, these subjects' curriculum is not expanded enough, meaning it does not grasp deeper into the specific subject. The reason for this is usually a little allocated time for class. Additionally, the structure of the curriculum is not adapted to the actual needs and educational habits of the students involved. Often, the curriculum becomes irrelevant due to non-timely updating, In order to be relevant for the current time, the curriculum needs to be constantly updated, according to leading technological trends.

The contradiction about a badly constructed curriculum is that it often demands moderate academic knowledge about a certain topic for students. For example, personal finance subjects may demand that a student recognizes key elements and concepts from economics and finance, which are actually academic subjects usually studied later on.

3 0
3 years ago
Which type of account is always debited during the closing process? Retained earnings Dividends Expense Revenue
NNADVOKAT [17]

Answer:

Revenue

Explanation:

The closing entries for the following accounts are as follows:

1. Service Revenue A/c Dr XXXXX

                  To Income Summary XXXXX

(Being revenue account closed)

2. Income summary A/c Dr XXXXX

                        To Expenses A/c XXXXX

(Being expenses accounts are closed)

3. Income summary A/c Dr XXXXX

                 To Retained earning XXXXX

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr XXXXX

                To Dividend A/c XXXXX

(Being dividend account is closed)

5 0
3 years ago
Read 2 more answers
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