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defon
3 years ago
12

Hypothetical situation: The economy has been declining for six months. The unemployment rate has increased by 2 percent in the p

ast six months, and many Americans are looking for work. Production has decreased and many businesses are simply not investing or hiring new workers. Consumers are saving (not spending) their money because they are worried about current events. From what you learned in this course, what is the most logical action for the Federal Reserve to take?
Business
1 answer:
Crazy boy [7]3 years ago
7 0

Answer:

The Fed needs to engage in an expansionary monetary policy.

Explanation:

An expansionary monetary policy is carried out by lowering the interest rates and purchasing government securities. This will increase the money supply and increase total spending. An increase int eh total spending should reverse the decline of the economy and help it rebound.

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The Golden Goose is considering a project with an initial cost of $46,700. The project will produce cash inflows of $10,000 for
MrRissso [65]

The payback period is 4.06 years.

<h3>What is the payback period?</h3>

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Amount recovered in the first year = 46,700 - 10,000 = 36,700

Number of years it would take to recover 36,700 = 1 + (36700 / 12,000) = 4.06 years

To learn more about the payback period, please check: brainly.com/question/25716359

#SPJ1

6 0
2 years ago
We are evaluating a project that costs $744,000, has a six-year life, and has no salvage value. Assume that depreciation is stra
yawa3891 [41]

Answer: $15,400

Explanation:

BEP = Fixed cost - depreciation/ sales - variable cost

BEP = 740,000 - (744,000/6)/($60 -$20)

BEP= $740,000-$124,000/$40

BEP = $616,000/$40

BEP =$15,400

8 0
3 years ago
A firm is considering the acquisition of a new machine. The base price is $85,000 and it would cost $15,000 to install. The mach
Naddik [55]

Answer:

Cash flow year 0   (110,000)

or in other way to express it: a cashoutflow for $110,000

Explanation:

Initial net cahs outflow

this will be the acquisition of the machine cost plus the increase in the working capital for the company

machine cost: all cost necessary for acquire the machien and get it operational

supplier list price        85,000

installation cost       <u>    15,000</u>

total cost                     100,000

Increase in Working Capital Cost 10,000

As these are cost they are negative so we have a cashouflow

Total cashflow    (110,000)

4 0
3 years ago
Identify the type of cash flow activity for each of the following events (operating, investing, or financing): a. Redeemed bonds
Burka [1]

Answer is given below

Explanation:

type of cash flow activity

a. Redeemed bonds   ---------------Fiancing

b Issued preferred stock -----------Fiancing

c. Paid cash dividends --------------Fiancing

d. Net income --------------------------Operating

e. Sold equipment --------------------Investing

f. Purchased treasury stock -------Fiancing

g. Purchased patents ----------------Investing

h. Purchased buildings -------------Investing

i. Sold long-term investments ----Investing

j. Issued bonds ------------------------Fiancing

k. Issued common stock -----------Fiancing

7 0
3 years ago
Bob holds a portfolio of 20 stocks from different industries, whereas Sharon holds only one stock in her portfolio. Assuming the
nikdorinn [45]

Answer:

The correct answer is: C. larger decrease in total risk.

Explanation:

The risk of an investment portfolio refers to the possibilities of obtaining the return, profit or profit you expect. Every investment involves a risk, and the more you can earn, the greater the risk. If you put your money on a fixed term, the risk is minimal, but it hardly gives you an interest even less than inflation. If you invest in the forex market, for example, you can earn a lot of money, but also the risk (that you do not achieve and even that you lose what you invested) is much greater. Every investor knows that he must assume some risk, because it is something inherent in the investment.

5 0
3 years ago
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