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guapka [62]
3 years ago
5

The aggregate demand curve is negatively sloped due to: a the elasticity effect of an aggregate price level change b the fiscal

policy effect c the substitution effect of the aggregate price level change d the wealth effect of an aggregate price level change
Business
1 answer:
balandron [24]3 years ago
5 0

Answer:

d. the wealth effect of an aggregate price level change

Explanation:

The aggregate demand curve is negatively sloped due to <u>the wealth effect of an aggregate price level change</u>. The reason is that rise in the aggregate price decreases the purchasing power of the individual and thus, decreases in aggregate demand increases the purchasing power of the individual.

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G explain why a rii fractional experiment is a bad idea? use an example to illustrate your point.
Reika [66]

Because it is you will find the answer soon and hopefully I don’t know


8 0
3 years ago
How can tech companies increase goodwill and indirectly affect profits for parent companies?
Troyanec [42]

Answer:

The only way goodwill can be increased is through the acquisition of another company as a subsidiary. Assume a business acquires a subsidiary for a price that exceeds the total value of the subsidiary's assets.

Explanation:

3 0
3 years ago
John’s home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate
Mumz [18]

Answer:

Market value

Explanation:

The market value of a product is the price at which a buyer is willing to purchase a good irrespective of prevalent price of a commodity. It is that amount a buyer and seller are willing to strike a deal for given normal market conditions.

In this scenario John originally bought his five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000.

Despite the house now being $350,000, $365,000 is the market price at which the buyer and seller are willing to settle.

8 0
3 years ago
Sicilian Defence, a division of Queen's Gambit Corp., has a net operating income of $60,000 and average operating assets of $300
Anon25 [30]

Answer:

Queen's Gambit Corp.

Sicilian Defence Division

If the manager of the Sicilian Defence division is evaluated based on residual income, will she want to make an investment of $100,000 that would generate additional net operating income of $18,000 per year?

Yes.

The additional investment yields comparable positive Residual Income.

Explanation:

a) Data and Calculations:

Net operating income of Sicilian Defence Division = $60,000

Average operating assets = $300,000

Required rate of return for the company = 15%

Residual income (RI)= Operating Income - (Operating Assets x Required Rate of Return)

= $60,000 - ($300,000 * 15%)

= $60,000 - $45,000

= $15,000

Investment cost = $100,000

Additional net operating income = $18,000

Residual Income = $18,000 - ($100,000 * 15%)

= $18,000 - $15,000

= $3,000

Total residual income = $78,000 - ($400,000 * 15%)

= $78,000 - $60,000

= $18,000

8 0
3 years ago
You believe you will spend $40,000 a year for 20 years once you retire in 40 years. If the interest rate is 6% per year, how muc
boyakko [2]

Answer:

We need to save $2,964 each year until retirement to reach our retirement goal.

Explanation:

First lets assume that we have retired, we now need to find the present value of all our future cash flows, which means we need to find out the present value of 40,000 every year. We will input the following in a financial calculator.

FV=0

PMT= -40,000

I=6

N=20

Compute PV= 458,796

This PV is what present amount of the future payments we will need at the start of our retirement which is after 40 years. This represents the amount of money we need to have at the end of 40 years in order to have enough for our retirement. Which means we can use this as the future value. Now we need to find how much do we have to save each year so we have 458,796 at the end of 40 years.

In a financial calculator we will input the following.

FV= 458,796

PV=0

I=6

N=40

Compute PMT= 2,964

We need to save $2,964 each year until retirement to reach our retirement goal.

6 0
3 years ago
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