Answer:
The answer is d. possibility that interest rates drop so low that people willingly hold all the additions to the money supply, rather than use it to buy bonds
Explanation:
A liquidity trap is a situation in which interest rates are low and savings rates are high. It occurs when monetary policy becomes ineffective because, despite zero/very low-interest rates, people want to hold cash rather than spend or buy illiquid assets
Answer:
$3680
Explanation:
The cost of inventory is the cost incurred during assembly/preparing a product for sale and can include warehouse costs and insurance expenses.
In this case, warehouse was $2,400, insured the shipment at a cost of $300 and refurbishing at a cost of $980.
=$2400+$300+$980 =$3680
Here are the five basic principles found in a free enterprise system:
1) Governments have no control over the buying & selling of products & services.
2) The "invisible hand" of market supply and demand occurs
3) Governments may only be involved with to provide education, the army, and public health services (and other merit goods)
4) Governments may only provide public goods (such as lampposts) which bring no profit for sales people, as you cannot stop people from using those items.
5) Usually, there's a great difference in the distribution of wealth
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Based on the cost of the inventory to Windsor Inc, and the FIFO method, the gross profit for the month is C. $1,520
<h3>What is Windsor's gross profit?</h3>
FIFO means that the earlier goods are sold first.
210 units were left on hand which means that none of the Purchase on the 28th of January was sold.
The 15th Janaury purchase sold:
= 130 - (210 - 130)
= 50 units
The sales revenue is therefore:
= (260 + 50) x 9
= $2,790
The cost is:
= (260 x 4) + (50 x 4.60)
= $1,270
Gross profit is:
= 2,790 - 1,270
= $1,520
Find out more on FIFO at brainly.com/question/24137318.
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Answer:
Decrease
Explanation:
Given that
Change in quantity demanded = 6%
change in price = 14%
Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)
= 6% ÷ 14%
= 0.42
Price elasticity of demand is greater than 1 that which means demand is elastic. Therefore the increase in price, the revenue will decrease because demand is elastic.
