Answer:
a. Increased consumption , which shifts the aggregate-demand curve right.
Explanation:
When there is a boom in stockmarket which makes people wealthier, people's consumption would increase because of the desire and availability of money to purchase goods, which results in demand curve shifting right.
The boom in the stockmarket means people investment has appreciated hence are able to save and increase their consumption spending.
A shift in demand curve to the right means an increase in the quantity demand of goods and services while a shift in demand curve left means a decrease in the quantity demand of goods and services.
Other factor that could cause increased consumption and shifts in aggregate demand curve right is tax decrease. Tax is a compulsory levy imposed on an individual or an organization by the government.
When there is a tax decrease, people would be able to save more thus increase their desire to consume more hence demand curve would shift to the right.
Answer:
Option "C" is the correct answer to the following statement.
Explanation:
Decision-makers are usually highly skilled in Forecasting Inflation, they educate themselves to get knowledge and skill which will help them to Anticipate inflation slow market rates.
Decision-makers probably expect with a particularly high level of certainty with these forecast many industries change their plans according to inflation.
Answer:
As the price level rises, the purchasing power of households' real wealth will <u>fall</u>, causing the quantity of output demand to <u>fall.</u> This phenomenon is known as the <u>wealth</u> effect.
Additionally, as the price level rises, the impact on the domestic interest rate will cause the real value of the dollar to <u>rise</u> in foreign exchange markets. The number of domestic products purchased by foreign (exports) will therefore <u>fall</u>, and the number of foreign products purchases by domestic consumers and firms(imports) will <u>rise</u>.
Net exports will therefore <u>fall</u>, causing the quantity of domestic output demanded to <u>fall.</u> This phenomenon is known as the <u>exchange rate</u> effect.
Answer:
A) The price of his shares will rise if NanoSpeck issues additional shares of stock.
C) Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Kenji's shares to decline.
Explanation:
if a demand for kanji's is more than its supply, the share prices increase. if the sellers of a particular stock are more than its buyers, the share price decreases. if the company is earning much profit, the share price will rise.
Answer:
TRUE
Explanation:
A potential obligation that depends on the future outcome of past events is a contingent liability!
- An obligation is something that is to be done
- A potential obligation is a thing or activity that is among the options of stuff that can be done
- When something depends on the future outcome of past events, it introduces or carries with it, the cost of waiting (for future outcomes)
- A contingent liability is something that poses probability of loss instead of gain. The opposite of liability is asset.
So in business, a potential obligation or action that depends on the future outcome of past events is a contingent loss rather than gain.
