Answer:
A) Somewhat effective, but only to the extent that most of the tax cut is concurrently spent on domestic output, that multiplier effects occur, and crowding out is small.
Explanation:
First of all, the larger amount of money would increase the inflation rate since aggregate supply hasn't increased. The number of goods and services offered do not vary, then only thing that varies is the amount of disposable money.
The larger the multiplier, the larger the positive effect. The multiplier formula = 1 / MPS (marginal propensity to save). Even though inflation increases, still the economy is going to grow. That unless the local residents decide to purchase many imported goods. The larger the amount of imported goods purchased, the lower the positive effects.
This type of policy can be very effective under conditions where deflation or inflation rates are near 0 or even negative. Although high inflation is very bad for the economy, a small amount of inflation is always needed to boost economic growth. The healthy inflation is around 1.5 - 2% per year. This way salaries and wages can grow, pushing aggregate demand and supply.
Answer:
The correct answer is letter "A": Control and communication.
Explanation:
Direct Market representation is an export strategy carried out by businesses in an attempt of having more control over the goods exported, generate higher profits, better communication with the branch abroad, and a deeper bond with the consumer in different regions. The disadvantages include higher operations costs, organization time, and resources.
When there is a middleman in the target country who serves as an intermediary between the exporting company and consumers, <em>the indirect market representation</em> has been implemented.
Answer: $22,000
Explanation:
The Statement of Changes in Equity records how the equity holdings of shareholders has change during the year. It includes drawings which reduce the balance and net income which adds to it.
Net income = Ending balance - Opening balance + Drawings
= 76,000 - 69,000 + 15,000
= $22,000
Answer:
$961.54
Explanation:
we need to find out the present value of $1,000 in one year:
present value = future value / (1 + interest rate)ⁿ
- future value = $1,000
- interest rate = 4%
- n = 1
present value = $1,000 / (1 + 4%) = $1,000 / 1.04 = $961.54
this is an example of the financial principle of time value of money, i.e. one dollar today is worth more than one dollar tomorrow
Answer:
Price Place Promotion Product
Explanation:
It is pretty self explanatory.