Answer:
D. Recession
Explanation:
Aggregate output in an economy declines during a recession. This is because economic activities are declining. When such occurs GDP declines. This is different from stagflation in the sense that during a recession, only real GDP declines. However, in a stagflation, the fall in GDP also results to the increase in inflation. During recessions, economic activities are low so is price level.
The correct answer is plumbing
Answer:
c. $360 increase in excess reserves and a $40 increase in required reserves
Explanation:
Required reserves is the amount of reserves that is required by the Central bank that banks should keep.
Required reserve = reserve ratio × deposit
= 0.1 × $400 = $40
Excess reserve is the amount of reserves kept in excess of the required reserves.
Excess reserve = Deposit - Required reserve = $400 - $40 = $360
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Answer:
Minimun cost: $2000
Explanation:
We solve for the optimal order size using the
Economic Order Quantity:
<u>Where: </u>
D = annual demand = 2,000 boxes
S= setup cost = ordering cost = $ 100
H= Holding Cost = $10.00
EOQ 200
It should order: 2,000 demand / 200 order size = 10 times
At a cost of 1,000 dollar (100 units x $ 10)
It will face an average inventory of 100 units thus holding cost:
100 units x 10 dollar per unit = 1,000
Total cost: 1,000 + 1,000 = 2,000
Answer:
The term Operating leverage refers to the degree to which a firm uses debt financing (or other types of fixed-cost financing) to fund its operations.
Explanation:
Operating leverage is a measure of how revenue growth translates into growth in operating income
