The right answer for the question that is being asked and shown above is that: "d. AD and AS curves are more horizontal to the multiplier is more effective." Fiscal policy is limited when the slope of the <span>AD and AS curves are more horizontal to the multiplier is more effective.</span>
Answer:
Total FV= $678.615.02
Explanation:
<u>First, we need to calculate the value of the annuity at the end of the last payment:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,000*[(1.06^30) - 1]} / 0.06
FV= $158,116.37
<u>Now, the total future value after 25 years:</u>
FV= PV*(1 + i)^n
FV= 158,116.37*(1.06^25)
FV= $678.615.02
Answer:
The answer is A) Puts emphasis on the external environment, which plays a role in determining a company´s ability to achieve above-average returns.
Explanation:
The I/O Model of Above-Average Returns basically assumes that the industry in which a company decides to compete in has a much larger influence on performance (earnings and profit) than the choices the managers of this company make.
The basic assumptions of this organization model are:
- The external environment imposes pressures and constraints that determine the strategies of the company and will result in above average returns.
- It assumes competing companies control similar strategically relevant resources and pursue similar strategies.
- Resources are highly mobile across companies, so that any differences that might develop between companies will be short-lived.
- Decision-makers within the company are assumed to be rational and committed to acting in the company´s profit-maximizing behaviors.
