If the consumers are further confident they will expend additional dollars at entirely earnings stage and the consumption function moves upward. This increase in expenditure reasons the aggregate demand curve to move to the right. The ceteris paribus is known as a alteration in interest rates reasons a movement alongside the investment demand curve.
The above scenario is an example of Cooperative Advertising. Cooperative advertising is the sharing of expenses for privately set promoting between a retailer or distributer and a maker. Numerous producers have a set measure of helpful publicizing stores accessible every year, disseminated as open doors for joint effort emerge.
Answer:
Since GDP measures the market values of goods and services, economic activities that do not pass through the regular market channels are excluded in the computation of GDP. GDP doesn't include activities that go on in black market channels.
Explanation:
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Answer:
In a situation when
You go to a flea market and buy a used color TV set for $100. One day you receive a notice that the owner of the TV, which had been stolen from her house and sold by the thief at the flea market, wants the set back. She says if you do not return the TV she will sue you for:
a. conversion, and probably win even though you did not know the set was stolen
Explanation:
Seeing for Conversion is when a person claims that you stole property from him or her. It is the equivalent of theft charges. Prosecutors are the ones that have to bring justice to these kinds of situations, and they can be carried out in small local courts or by the retirement of an attorney to follow the case. Nevertheless, if the person is found innocent, the accused can sue for damages.
Answer:
1. $100,000 and 25%
2. $137,200 and 34.3%
3. $150,000 and 27%
Explanation:
1. It does not expand
a. Net income= $100,000 (as given in the question)
b. Return on equity= (net income)/(shareholder’s equity)
Shareholder’s equity= $400,000
Thus return on equity= 100000/400000 = 0.25 or 25%
2. It expands and issue $160,000 in debt
a. Net income= $100000 + 50000 – 12800 (debt interest 8% of $160000)
= $137,200
b. Return on equity= (net income)/(shareholder’s equity)
= 137200/400000
=0.343 or 34.3%
3. It expands and raises equity of $160000
a. Net Income= $100000 + 50000
= $150000
b. Return on equity= (net income)/(shareholder’s equity)
= 150000/(400000 + 160000)
Where ($560,000) 400000 + 160000 is shareholder’s equity
= 0.27 or 27%