Ems

Identify the possible reason or reasons for this stark difference between income inequality and consumption inequality. Intergen

Fudgin [204]

Answer:

The richest quintile has the ability to save a larger percentage of its income.
Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.

Explanation:

First part of this question reads:

In the United States, the richest quintile of the population receives 13 times as much income as the poorest quintile. However, the richest quintile only spends 4 times as much as the poorest quintile.

The richest quantile can afford to save more than the poorest quantile because they get enough income to manage their daily needs and then save. The poorest quantile on the other hand face a daily struggle and so have to spend all or most of their income to survive.

When the richer quantile goes through temporary fluctuations, they maintain moderate spending because they know it is temporary and so they keep saving. This is not the case for the poorer quantiles who have to spend according to their income - regardless of its fluctuating - to survive.

7 0

3 years ago

Suppose the U.S. Treasury offers to sell you a bond for $687.25. No payments will be made until the bond matures 5 years from no

pantera1 [17]

Answer:

6%

Explanation:

Data provided as per question is as given below:-

Redeemed amount = $1,000

Sale value of Bond = $687.25

Number of year = 5

The computation of interest rate is as shown below:-

Interest rate = (Redeemed amount ÷ Sale value of bond) ^ (1 ÷ Number of Year) - 1

= (1,000 ÷ 747.25) ^ (1 ÷ 5) - 1

= (1.338) ^ (0.2) - 1

= 0.06

= 6%

5 0

3 years ago

Use the following comparative figures for Apple and Google. Google 12.662 $ Key Figures Net income (in millions) Cash dividends

azamat

Answer and Explanation :

Few information is missing in the question kindly find the attachment

As per the data given in the question,

The formula and the computation is shown below

1) Book value per share = Equity applicable to share ÷ share outstanding

Apple Google

Equity common share a $134,047 $152,502

Common share outstanding b 5,126.201 694.783

Book value per common share a ÷ b $26.15 $219.50

2)Basic EPS = Net income ÷ weighted Avg common share outstanding

Apple Google

Net income a $48,351 $12,662

weighted Avg common share outstanding b 5217.242 693.049

Basic EPS a ÷ b $9.27 $18.27

3)Dividend yield = Cash dividend per common share ÷ Market price per share

Apple Google

Cash dividend per common share a 2.4 0

Market price per share b $154.12 $1046.4

Dividend yield a ÷ b 1.56% 0.00%

4) Price earning ratio = Market price per share ÷ Basic EPS

Apple Google

Market price per share a $154.12 $1046.4

Basic EPS b 9.26754 18.26999

Price earning ratio a ÷ b 16.63 57.27

5) A higher PE ration indicates that investors want to pay a higher share price because of growth expectation in near by future

Therefore Google has higher PE ratio

Hence, investors have greater expectation of performance of Google in future.

4 0

4 years ago

KPIs for social media are __________ traditional measures for advertising effectiveness.

Anna35 [415]

Answer:

D)Analogous to

Explanation:

7 0

3 years ago

Personal selling requires the ________ flow of communication between a buyer and a seller, often in a face-to-face encounter, de

Free_Kalibri [48]

Answer:

Two-way flow

Explanation:

Personal selling is one of the methods used by salespeople to drive sales. It involves face-to-face interaction with customers who are persuaded to purchase the product.

This method relies heavily on effective communication mostly the two-way flow of communication.

Two-way flow of communication means that when a message is conveyed to the customer there is feedback to the salesperson. The feedback is used to decide the best course of action to be taken in order to complete the transaction

7 0

3 years ago