Kayla's compensating variation is 10 - (-900) = $910. This is the amount of additional income she would need in order to remain as satisfied with her current consumption as before the price of good Q 1 increased from $20 to $60.
Kayla's compensating variation is the amount of additional income she would need in order to remain as satisfied with her current consumption as before the price of good Q 1 increased from $20 to $60. This increase in price causes a decrease in Kayla's real income, and the compensating variation measures the amount of additional income that would be needed to compensate for the decrease in real income.
To calculate the compensating variation, the first step is to calculate the budget line. The budget line is the line that represents all combinations of good Q 1 and good Q 2 that Kayla can purchase with her income of $1,800. Assuming that the price of good Q 1 has increased from $20 to $60, and the price of good Q 2 is still $10, Kayla can purchase a maximum of 30 units of good Q 1 and 180 units of good Q 2. The budget line equation can be calculated using the two price and income values:
30Q1 + 180Q2 = 1,800
The second step is to calculate the maximum utility Kayla can obtain from the budget line. This can be calculated by considering Kayla's utility function. If Kayla has an additive utility function of U = Q1 + Q2, then the maximum utility she can obtain from the budget line is 30 + 180 = 210.
The third step is to calculate the equivalent variation. This is the amount of income that would need to be taken away from Kayla in order to leave her with the same level of utility she had before the price of good Q 1 increased from $20 to $60. In this case, the equivalent variation is the difference between the maximum utility that Kayla can obtain before and after the price change. Since the maximum utility before the price change was 200, and the maximum utility after the price change was 210, the equivalent variation is 10.
Finally, Kayla's compensating variation is the difference between the equivalent variation and the change in real income caused by the price change. In this case, the change in real income is -$900, since the price of good Q 1 has doubled.
To know more about Variation click here:
https://brainly.com/question/15571171#
#SPJ11
which of the following is a reason(s) that keeps managers from selfishly diversifying the firm for higher compensation? a. concerns for their reputation and strong managerial talent market b. concerns for their reputation and weak managerial talent market c. fear that the firm would lose value d. to avoid the responsibility of a more highly complex firm
The correct answer for managers are kept from selfishly diversifying the firm for higher compensation is mainly because of concerns for their reputation and strong managerial talent market.
What is Managerial Talent?
Managerial talent refers to the set of skills that allows people to organize resources and bring out the best in employees to achieve common objectives. It involves a range of activities, including setting goals, delegating tasks, allocating resources, and monitoring performance.
Managerial talent is crucial to a company's success because it allows organizations to streamline their activities, improve efficiency, and deliver better results.
Compensation is the payment given to employees in exchange for their services. There are several forms of compensation, including salaries, wages, benefits, and bonuses. Compensation packages are designed to attract, retain, and motivate employees, as well s to align their interests with those of the company.
The reason that keeps managers from selfishly diversifying the firm for higher compensation is concerns for their reputation and strong managerial talent market.
Managerial talent is scarce and in high demand, making it difficult for firms to attract and retain top talent. Companies that are perceived as overly focused on short-term gains or that fail to provide opportunities for growth and development are likely to face challenges in attracting and retaining top talent.
As a result, managers are often motivated by concerns for their reputation to avoid actions that may harm the firm's long-term prospects or that are inconsistent with its values.
For more information about managerial talent refer here :
https://brainly.com/question/29564277?
#SPJ11
belle company reports the following information for the current year. all beginning inventory amounts equaled $0 this year. units produced this year 85,000 units units sold this year 51,000 units direct materials $ 25 per unit direct labor $ 27 per unit variable overhead $ 3 per unit fixed overhead $ 658,750 in total belle company's product is sold for $81 per unit. variable selling and administrative expense is $2 per unit and fixed selling and administrative is $330,000 per year. compute the net income under absorption costing. multiple choice
The net income under absorption costing for Belle Company is $494,000.
How do we calculate the net income using absorption costing?To compute the net income under absorption costing, we need to calculate the total cost of producing the units sold, including both variable and fixed costs, and then subtract that from the total revenue generated by the sales.
Data
Direct materials cost per unit = $25
Direct labor cost per unit = $27
Variable overhead cost per unit = $3
Total variable cost per unit = $25 + $27 + $3 = $55
Total fixed cost per unit = Total fixed overhead / Total units produced
= $658,750 / 85,000
= $7.75
Total cost per unit = Total variable cost per unit + Total fixed cost per unit
Total cost per unit = $55 + $7.75
Total cost per unit = $62.75
Total cost of goods sold = Total units sold x Total cost per unit
Total cost of goods sold = 51,000 x $62.75
Total cost of goods sold = $3,204,750
Total revenue = Total units sold x Selling price per unit
Total revenue = 51,000 x $81
Total revenue = $4,131,000
Finally, the net income under absorption costing will be:
= Total revenue - Cost of goods sold - Variable selling and administrative expense - Fixed selling and administrative expense
= $4,131,000 - $3,204,750 - (51,000 x $2) - $330,000
= $926,000 - $102,000 - $330,000
= $494,000.
Complete question "belle company reports the following information for the current year. all beginning inventory amounts equaled $0 this year. units produced this year 85,000 units units sold this year 51,000 units direct materials $ 25 per unit direct labor $ 27 per unit variable overhead $ 3 per unit fixed overhead $ 658,750 in total belle company's product is sold for $81 per unit. variable selling and administrative expense is $2 per unit and fixed selling and administrative is $330,000 per year. compute the net income under absorption costing".
Read more about absorption costing
brainly.com/question/26276034
#SPJ1
true or false: gambling expenses and losses to the extent of gambling winnings are reported as miscellaneous itemized deductions.
True. Gambling expenses and losses to the extent of gambling winnings are reported as miscellaneous itemized deductions on Schedule A (Form 1040).
These miscellaneous deductions are subject to a 2% adjusted gross income (AGI) limitation. That means, you can only deduct the amount of these miscellaneous deductions that exceeds 2% of your AGI.
Miscellaneous itemized deductions include the unreimbursed employee expenses such as union dues, work-related travel, and professional memberships. Also, gambling losses such as the cost of buying lottery tickets and wagering losses on horse racing, slot machines, and bingo, are reported as miscellaneous itemized deductions.
You should keep accurate records of your gambling expenses and winnings, including the date and location of the wager, the type of gambling activity, the people you were with, and the amounts of your winnings and losses. You may also need to show the IRS proof of your gambling losses if they audit your return.
To claim your gambling losses on Schedule A (Form 1040), you should use Form W-2G to report your winnings, or Form 5754 if the winnings were received by someone other than the gambler.
To sum it up, gambling expenses and losses to the extent of gambling winnings are reported as miscellaneous itemized deductions on Schedule A (Form 1040). These miscellaneous deductions are subject to a 2% AGI limitation and should be supported with accurate records such as Form W-2G or Form 5754.
To learn more about Gambling here:
https://brainly.com/question/12312007#
#SPJ11
one of the main issues for management to consider in designing an international company's structure is
Designing an international company's structure can be a daunting task for management. This is because such a company may have operations in different countries and deal with various languages, cultures, legal systems, and market conditions.
Therefore, the management must consider several issues to develop a structure that is effective and efficient. Some of the main issues to consider include the following:
Legal and regulatory framework: An international company must adhere to different legal and regulatory frameworks in different countries.
Market conditions: Different countries have different market conditions, including consumer preferences, purchasing power, and competition.
Culture and language: An international company may have employees, customers, and partners from different cultures and speaking different languages.
Organizational culture: An international company may have a diverse workforce with different values, beliefs, and work styles.
Communication and information management: An international company must have effective communication and information management
In conclusion, designing an international company's structure is a complex task that requires management to consider legal and regulatory frameworks, market conditions, culture and language, organizational culture, communication and information management, and other factors.
To learn more about management here:
https://brainly.com/question/1276995#
#SPJ11
which transaction type(s) is/are part of the operating cycle of a merchandising company? (select all that apply). multiple select question. payments for advertising services purchases of merchandise payments for salaries payments for rent sales of merchandise, often on account collections of accounts receivable
The operating cycle of a merchandising company consists of the following transactions:
Purchases of merchandisePayments for advertising servicesPayments for salariesPayments for rentSales of merchandise, often on accountCollections of accounts receivableThe operating cycle of a merchandising company refers to the process of purchasing, selling, and collecting payments related to the sale of merchandise. The cycle typically starts with the purchase of inventory and ends with the collection of cash from customers who have purchased the merchandise.
Here are the transaction types that are part of the operating cycle of a merchandising company:
Purchases of merchandise: This refers to the acquisition of inventory or goods that the company intends to sell to customers. Purchases of merchandise are typically made from wholesalers or manufacturers.
Sales of merchandise, often on account: This refers to the selling of merchandise to customers, often on credit or on account. In this case, the customer agrees to pay for the merchandise at a later date.
Collections of accounts receivable: This refers to the process of collecting payments from customers who have purchased merchandise on credit. The company sends invoices to customers, and when payments are made, they are recorded as collections of accounts receivable.
Payments for advertising services: This refers to the cost of promoting the company's merchandise through various advertising channels, such as print, online, or broadcast media.
Payments for salaries: This refers to the compensation paid to employees who work for the company. Salaries include wages, bonuses, and other forms of compensation.
Payments for rent: This refers to the cost of renting or leasing the physical space where the company operates. Rent is typically paid on a monthly or annual basis.
Overall, the operating cycle of a merchandising company involves a series of transactions related to the purchase, sale, and collection of payments for merchandise. By managing these transactions effectively, the company can ensure a steady stream of revenue and maintain profitability.
For further information on merchandising services, refer below:
https://brainly.com/question/29451953
#SPJ11
adalyn is preparing to go into her meeting with her supervisor, Basheera, to discuss her annual evaluation. she knows that there have been a few times this year where she could have performed better and she does not want to get angry in the meeting. last night and on the ride in this morning, she rehearsed what she anticipated basheera would tell her and what her response would be. Adalyn was trying toresist being defensive
Adalyn ought to go into the meeting with a growth mentality, understanding that criticism is an opportunity to grow. By accepting responsibility for her behaviour and being receptive to constructive criticism.
How does the management's feedback aid in your own development and growth?Contrary to popular belief, constructive criticism is the most effective kind of feedback for assisting in the development of better judgements that will enhance and boost performance.
Do you have a fixed perspective or a progressive mindset when it comes to feedback, suggestions, and criticism?Answer: 1) It's crucial to respond to feedback, ideas, or criticism with a growth mindset as opposed to a fixed perspective. because somebody who has a growth mindset usually has more personal development and knowledge, they view mistakes and failures as opportunities for growth and improvement.
To know more about meeting visit:-
https://brainly.com/question/27561486
#SPJ1
all of the following are true with respect to generic drugs except that they group of answer choices contain the same active ingredients as their brand name counterpart. are sold under a chemical name instead of a brand name. have the same inactive ingredients as their brand name counterpart. are generally less expensive than brand name drugs.
All of the following are true with respect to generic drugs except that they are generally less expensive than brand name drugs.(option d)
What do you mean by Generic drugs?Generic drugs are sold under a chemical name instead of a brand name, and they contain the same active ingredients as their brand name counterpart.
They may not, however, have the same inactive ingredients as their brand name counterpart, which can affect how they are absorbed by the body.
It is also important to note that generic drugs are regulated by the FDA and must meet the same standards for safety, quality, and efficacy as brand name drugs.
To know more about generic drugs visit:
https://brainly.com/question/9839576
#SPJ11
Complete question: All of the following are true with respect to generic drugs except that they
a) contain the same active ingredients as their brand name counterpart.
b) are sold under a chemical name instead of a brand name.
c) have the same inactive ingredients as their brand name counterpart.
d) are generally less expensive than brand name drugs.
as a company, charles schwab is most known for multiple choice ipos. retained earnings. being first to market. cutting trading fees. ethical issues.
As a company, Charles Schwab is most known for cutting trading fees. The correct answer is D.
What is Charles Schwab?Charles Schwab is an American financial corporation with headquarters in San Francisco, California. Charles Schwab provides various brokerage, banking, and financial advisory services, including stock brokerage and money management services. Charles Schwab is a direct-to-investor financial services firm that provides various banking and brokerage services.
The firm offers trading through its electronic trading platforms, such as web-based, desktop, and mobile trading apps. The company was founded in 1971 by Charles R. Schwab and is currently led by its founder, Charles Schwab.Charles Schwab is one of the largest publicly-traded investment firms in the United States with a market capitalization of $83.5 billion as of 2019.
The firm serves both retail and institutional clients and has approximately 28 million active brokerage accounts. Charles Schwab was the first discount brokerage firm to offer commission-free trades on U.S. stocks, ETFs, and options trades. As a result, the company is most known for cutting trading fees.
Learn more about Charles Schwab at
https://brainly.com/question/29558173
#SPJ11
lobalization has increased the ethical problems facing organizations. group of answer choices true false
The given statement, "Globalization has increased the ethical problems facing organizations," is true. The world is evolving into a global village with the rapid growth of communication and transportation, and the economy is becoming increasingly global.
Globalization has resulted in the integration of national economies, the growth of multinational corporations, and the establishment of global markets. Although globalization has many advantages, it also poses some ethical problems that businesses must address. Let's have a detailed look at how globalization has increased ethical issues for organizations.
1. Ethical considerations: With the rise of globalization, businesses now have a greater need to address ethical concerns in their operations. Companies must ensure that they meet ethical standards in all aspects of their business, including corporate governance, social responsibility, environmental sustainability, and labor practices.
2. Complex supply chain: The increase in global trade has led to complex supply chains, with businesses sourcing raw materials and components from various countries. This complexity makes it difficult for companies to track the conditions under which these goods are produced, the labor practices, and the social and environmental impacts of their activities.
3. Cultural differences: Globalization has led to the movement of people across borders, and this has resulted in cultural differences between employees in the same organization. These cultural differences can lead to misunderstandings and conflicts, and businesses must address these issues to create a harmonious work environment.
4. Cybersecurity: Globalization has also led to an increase in cybercrime, and businesses must ensure that they have robust cybersecurity measures in place to protect their customers' data and their own intellectual property.
In conclusion, globalization has increased the ethical problems facing organizations. To address these challenges, businesses must implement effective ethical standards, monitor their supply chains, address cultural differences, and protect their data and intellectual property.
To learn more about Globalization here:
https://brainly.com/question/25499191#
#SPJ11
contingency reserves require a construction company to hold back some funds in an account just in case something happens that increases the overall project cost. true false
The given statement " contingency reserves require a construction company to hold back some funds in an account just in case something happens that increases the overall project cost " is TRUE because of Contingency reserves require a construction company to hold back some funds in an account just in case something happens that increases the overall project cost.
Contingency reserves can be defined as a percentage of the total project cost that is held in reserve to pay for unforeseen expenses.
In the construction industry, there are always unforeseen events that can disrupt a project. Contingency reserves are set up in the event of these circumstances. Construction projects are usually subjected to unforeseen problems that might affect the project outcome, increase costs or delay the work's progress.
Therefore, construction companies typically reserve a percentage of their budget for unexpected costs that might occur during a project. These unexpected costs can result from such factors as inflation, delays, and changes in the cost of goods or services.
To know more about construction company refer here
https://brainly.com/question/29659632#
#SPJ11
Konica/Minolta would be most likely to use which of the following as part of their digital marketing strategy?
a
E-marketing
b
Social bookmarking sites
c
General social networking sites
d
Niche social networking sites
e
E-commerce
Finally, Konica/Minolta could use e-commerce to collect customer data and feedback. They could use this information to improve their products and services, as well as to create targeted marketing campaigns that appeal to their customers. Overall, e-commerce is an important part of any digital marketing strategy, and Konica/Minolta would be wise to incorporate it into their own strategy.
Konica/Minolta would be most likely to use e-commerce as part of their digital marketing strategy. This is because e-commerce is the process ofand selling products and services over the internet. E-commerce is an important tool for businesses because it allows them to reach a wider audience, sell more products, and provide better customer service.
There are several ways that Konica/Minolta could use e-commerce as part of their digital marketing strategy. One way is by creating an online store where customers can purchase their products. This online store could include product descriptions, images, and customer reviews to help customers make informed purchasing decisions. Konica/Minolta could also use e-commerce to sell their products on other websites, such as Amazon or eBay. Another way that Konica/Minolta could use e-commerce as part of their digital marketing strategy is by offering special promotions and discounts to online customers.
For example, they could offer free shipping or a percentage off the total order for customers who purchase through their online store. This would encourage more people to purchase their products online, which would increase their overall sales.
for such more questions on digital marketing
https://brainly.com/question/8367090
#SPJ11
along a phillips curve: group of answer choices prices and tax rates are directly related. the inflation rate varies inversely with the unemployment rate. consumption depends on prices. the inflation rate varies directly with the unemployment rate.
Along a Phillips curve, the inflation rate varies inversely with the unemployment rate.
Phillips curve demonstrates an inverse relationship between inflation and unemployment. The graph shows a downward-sloping curve, as shown below: On the vertical axis, we have inflation, and on the horizontal axis, we have unemployment. When unemployment is high, inflation is low, and when unemployment is low, inflation is high.
The Phillips curve was an influential tool in the development of macroeconomic policy during the 1960s. The Phillips curve demonstrated that policymakers could create a tradeoff between unemployment and inflation. The correct option is: The inflation rate varies inversely with the unemployment rate.
To know more about philips curve refer to:
https://brainly.com/question/14339149
#SPJ11
pt. 2
Directions: answer true or false for the following
11. Competition is a major reason that businesses offer credit because being able to buy now and pay later is often the deciding factor in the choice of a company with which to do business. ________
12. A good credit rating has become so necessary that some people open credit accounts even when they have cash on hand. ________
13. One important disadvantage of obtaining credit is the inability to save money. ________
14. All businesses must comply with credit legislation at both the state and federal levels. ________
15. The Uniform Commercial Credit Code (UCCC) was drawn up to give states a model to follow in writing their own sets of credit laws. ________
16. Retail Installment Sales Acts (RISAs) govern only installment sales of personal property. ________
17. The Truth-in-Lending Act (TILA) is also called the Consumer Credit Cancellation Act (CCCA) and gives customers the right to cancel a transaction after five working days. ________
18. Under the Equal Credit Opportunity Act (ECOA), credit applicants must be notified within 30 days of their acceptance or rejection. ________
19. The Fair Credit Reporting Act (FCRA) requires businesses that extend credit to respond within 30 days to any customer complaint or inquiry concerning a billing error. ________
20. The Fair Credit Billing Act (FCBA) allows a business 90 days to explain or correct a billing error. ________
Answer:
See below, please.
Explanation:
11.True
12.True
13.True
14.True
15.True
16.False
17.False
18.True
19.False
20.False
true or false: one principal way that a company can act ethically toward employees and meet their expectations is by creating an occupational structure that fairly and equitably rewards employees for their contributions.
The given statement "one principal way that a company can act ethically toward employees and meet their expectations is by creating an occupational structure that fairly and equitably rewards employees for their contributions." is true because one principal way that a company can act ethically toward employees and meet their expectations is by creating an occupational structure that fairly and equitably rewards employees for their contributions.
This includes providing fair wages, benefits, and opportunities for professional development and advancement. Creating a workplace that is free from discrimination and harassment is also important for ethical treatment of employees. By valuing and investing in their employees, companies can cultivate a positive work culture and foster long-term loyalty and commitment from their workforce.
You can learn more about occupational structure at
https://brainly.com/question/11687949
#SPJ11
compare this case to the norplant case in chapter 7. what similarities/differ- ences do you see in the marketing campaigns? in the lawsuits?
The Norplant case, which is covered in Chapter 7, is similar to the case discussed in the question in that both cases involve contraceptives. Both Norplant and the case discussed in the question involve a pharmaceutical company promoting a product that can be used as a form of birth control.
However, there are several differences between the two cases. The Norplant case was focused around the marketing of the product, while the case discussed in the question involves a lawsuit over the product.
The marketing campaigns for the two cases were very different. For Norplant, the pharmaceutical company had an aggressive advertising campaign to promote the product, while the case discussed in the question does not appear to have any specific advertising campaign associated with it.
Additionally, the Norplant case resulted in multiple lawsuits, while the case discussed in the question does not appear to have any related lawsuits.
To know more about Norplant case refer here:
https://brainly.com/question/30598991#
#SPJ11
joachim produces and sells baskets. his marginal cost for one basket is $10, and his average cost is $7. he gains producer surplus every time that he sells a basket at a price: group of answer choices below $10. below $7. above $10. above $7.
The price must be above $7 for him to gain a producer surplus if he gains producer surplus every time that he sells a basket at a price. Thus, option c is correct.
If he sells a basket above his mean cost of $7, then he will have a favorable producer surplus because he is selling the basket above his price of production. The price must be above $7 for him to gain a producer surplus. If he wants to continue his profit in the market he should maintain the surplus in his business.
If he sells a basket below his original cost of $10, then he will get a loss. Therefore, the cost of baskets must be above $10 to gain a producer surplus in the market.
To learn more about marginal cost
https://brainly.com/question/7781429
#SPJ4
Business rules must be rendered in writing.a. Trueb. False
The given statement, "Business rules must be rendered in writing" is True (T) because business rules are an essential part of any business and must be rendered in writing to be useful because they can then be used to ensure that everyone in the company is on the same page.
What are business rules?Business rules are the constraints, requirements, and conditions that govern the operation of a business. They are necessary for ensuring that all of the company's activities and transactions are carried out correctly, efficiently, and in compliance with legal and regulatory requirements. Business rules can be related to anything from the types of products and services that the company offers to the methods used for conducting business with customers. They can also relate to the internal operations of the company, such as how employees are hired, trained, and managed.
Why are written business rules important?Written business rules are important because they provide a clear and concise way to communicate the company's policies and procedures. This makes it easier for employees to understand what is expected of them and how to perform their jobs correctly.Written business rules also provide a record of the company's policies and procedures. This can be important in cases where legal or regulatory compliance is at issue because it demonstrates that the company has a system in place for ensuring that its activities are in compliance with relevant laws and regulations.
Learn more about business rules https://brainly.com/question/5707732
#SPJ11
at a given point in time, the price of a credit default swap contract should be related to the default risk of the securities covered by the contract. for a given set of securities that are covered by a credit default swap, the price of the contract should be related to the default risk as it changes over time. a. positively; inversely b. positively; positively c. inversely; positively d. inversely; inversely
As the default risk increases or decreases over time, the price of the CDS contract will also increase or decrease accordingly. The correct answer is: c. inversely; positively
What is a Credit Default Swap (CDS)?
Credit Default Swap (CDS) is a financial product that swaps the credit risk of fixed-income securities. The buyer pays the seller premiums and, in return, receives compensation if the underlying security defaults.A CDS can be used to transfer credit risk from one party to another, providing liquidity for the markets while reducing the risk of default. It is a type of insurance agreement on a credit default.
The price of a credit default swap (CDS) contract is inversely related to the default risk of the securities covered by the contract. In other words, as the default risk of the securities increases, the price of the CDS contract increases as well. This is because the CDS contract provides insurance against the possibility of default, and the higher the default risk, the more valuable the insurance.
However, the price of the CDS contract is positively related to the changes in default risk over time. As the default risk increases or decreases over time, the price of the CDS contract will also increase or decrease accordingly. This is because the CDS contract provides protection for a specific period of time, and the longer the time until maturity, the greater the chance that the default risk will change.
Therefore, the correct option is c. inversely; positively
Learn more about finance here:-
https://brainly.com/question/989344
#SPJ11
most of the appliances that whirlpool sells in the uk are built in the eu. suppose the pound rises in value relative to the euro. true or false: whirlpool's profit margin will increase. true false
The answer to your question is
The statement, most of the appliances that whirlpool sells in the uk are built in the eu. suppose the pound rises in value relative to the euro is True. If the pound rises in value relative to the euro, it will become more expensive for Whirlpool to buy components in the EU.
This will result in higher costs for Whirlpool, reducing their profit margin. However, if the exchange rate increases in favor of the pound, it will become more profitable for Whirlpool to sell their products in the UK, as their prices will be more competitive. This will increase their profit margin.
To know more about profit margin, click on the link below:
https://brainly.com/question/28212891#
#SPJ11
It is False. If the pound rises in value relative to the euro, it would mean that it takes fewer pounds to buy one euro.
This would make the appliances that Whirlpool sells, which are built in the EU, cheaper for Whirlpool to purchase in euros. Assuming that Whirlpool maintains its prices, its profit margin would remain the same or decrease, as the cost of production would decrease.
Any increase in profit margin would depend on Whirlpool's pricing strategy and whether it passes on the savings to customers or keeps the prices constant.
However, any increase in profit margin would depend on Whirlpool's pricing strategy and whether it passes on the savings to customers or keeps the prices constant. Therefore, it is not accurate to assume that Whirlpool's profit margin will increase solely due to a rise in the value of the pound relative to the euro.
For more details about relative click here:
https://brainly.com/question/30960875#
#SPJ11
which of the following does a central bank in a system with limited reserves use most often to combat a recession? (a) selling securities (b) buying securities (c) reducing the reserve requirement (d) increasing the discount rate (e) increasing the federal funds rate
Increasing the discount rate - is the most common way a central bank in a system with limited reserves uses to combat a recession. (D)
The discount rate is the interest rate charged to financial institutions when they borrow funds from a central bank. A central bank raising the discount rate causes borrowing to become more expensive and discourages spending, which helps to slow down inflation and stimulate economic growth.
This helps to reduce the negative effects of a recession. In contrast, buying securities or reducing the reserve requirement may increase the money supply and stimulate spending, which could potentially worsen a recession. Increasing the federal funds rate, which is the rate at which banks lend to each other, does not directly affect the public and therefore does not have an effect on a recession.
To know more about discount rate click on below link:
https://brainly.com/question/30392176#
#SPJ11
financial institutions are required to provide clear information about the costs and terms of interest-earning accounts in uniform terms due to the .
Financial institutions are required to provide clear information about the costs and terms of interest-earning accounts in uniform terms due to the Truth in Savings Act (TISA).
The Truth in Savings Act is a federal law that requires financial institutions to disclose to consumers the terms and conditions of deposit accounts such as checking and savings accounts, in a uniform and easy-to-understand way. It also requires financial institutions to clearly disclose any fees, interest rates, and other important details related to deposit accounts, such as how interest is calculated, the minimum balance required to earn interest, and any penalties for early withdrawal or account closure.
By providing this information in uniform terms, financial institutions ensure that consumers have a clear and complete understanding of the costs and benefits associated with different deposit accounts, and can make informed decisions about which accounts best meet their needs.
To know more about Truth in Savings Act (TISA) refer here :
https://brainly.com/question/14390876#
#SPJ11
what amound of gain or loss would sunland corporation report in its income statment for the year ended
Sunland Corporation would report a loss in its income statement for the year ended. The amount of the loss depends on a variety of factors such as expenses incurred, amount of revenue generated, and any other income or losses incurred.
To calculate the amount of loss Sunland Corporation would report, start by taking the total expenses for the year and subtracting it from the total revenue for the year. Any other income or losses, such as from investments, should be added or subtracted from this figure. The resulting figure is the total gain or loss for the year.
For example, if Sunland Corporation had total expenses of $500,000 and total revenue of $400,000 and a loss from investments of $100,000, then the total loss for the year would be calculated as follows:
Total Loss = Total Expenses - Total Revenue + Loss from Investments
Total Loss = $500,000 - $400,000 + ($100,000)
Total Loss = -$100,000
Therefore, Sunland Corporation would report a total loss of -$100,000 in its income statement for the year ended.
To learn more about income statement here:
https://brainly.com/question/15169974#
#SPJ11
all else equal, a 20% increase in the aggregate price level will increase the quantity of money demanded by: a 20%. b 20% of the money multiplier. c half the money multiplier. d 10%. e the money multiplier.
The correct option is C, All else equal, a 20% increase in the aggregate price level will increase the quantity of money demanded by half the money multiplier.
A money multiplier is one of many closely related ratios of commercial bank money to central bank money (also known as the monetary base) in a fractional-reserve banking system, according to monetary economics. The money multiplier, often known as the real ratio of money to central bank money, is lower because some money is used as currency by the general people outside of banks. Moreover, banks may have surplus reserves, or reserves that are in excess of the central bank's reserve requirements.
The multiplier in the first (statistical) sense fluctuates continuously based on changes in central bank and commercial bank money (though it is only the theoretical multiplier), whereas the multiplier in the second (legal) sense depends only on the reserve ratio and is therefore unaffected by changes in the law.
To learn more about Money multiplier visit here:
brainly.com/question/14986591
#SPJ4
Complete Question: -
All else equal, a 20% increase in the aggregate price level will increase the quantity of money demanded by:
a the money multiplier
b 10%.
c half the money multiplier.
d. 20%.
you are bearish on telecom and decide to sell short 270 shares at the current market price of $100 per share. a. how much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? (round your answer to the nearest whole dollar.)
If the broker's initial margin requirement is 50%, you would need to put up 50% of the value of the short position as cash or securities in your brokerage account. This come to $13,500.
What is broker's initial margin requirement?Broker's initial margin requirement is the minimum amount of equity that an investor must have in their brokerage account to enter into a particular type of transaction, such as a short sale.
Thus, if the broker's initial margin requirement is 50%, you would need to put up 50% of the value of the short position as cash or securities in your brokerage account.
The value of the short position is:
270 shares x $100 per share = $27,000
So, you would need to put up:
50% x $27,000 = $13,500
Rounded to the nearest whole dollar, you would need to put up $13,500 in cash or securities in your brokerage account.
Learn more about short position:
https://brainly.com/question/29652047
#SPJ1
select all that apply using a perpetual system, purchasing merchandise on account includes a . (check all that apply.) multiple select question. debit to cost of goods sold credit to accounts receivable credit to accounts payable debit to purchases debit to inventory need help? review these concept res
When using a perpetual system, purchasing merchandise on account includes:
credit to accounts payabledebit to purchasesdebit to inventory need helpWhat is recorded under the perpetual system?When using a perpetual system, purchasing merchandise on account includes the following:
Debit to Inventory: This records the increase in the inventory account due to the purchase of merchandise.Credit to Accounts Payable: This records the increase in the accounts payable account, which represents the amount owed to the supplier for the merchandise purchased.Debit to Purchases: This records the increase in the purchases account, which represents the total cost of the merchandise purchased during the accounting period.Read more about perpetual system
brainly.com/question/25014592
#SPJ1
how does the state prevent conflicts of interest arising for clients who employ contract lobbyists? choose the best answer.
The best way for the state to prevent conflicts of interest arising for clients who employ contract lobbyists is to require the lobbyists to register and disclose their clients and activities to the public. Lobbyists are individuals or organizations that advocate for a particular interest group in order to influence public policy.
Lobbying is a profession that involves contacting and persuading legislators and other government officials to support a particular cause, such as business interests or environmental protection. There are many different types of lobbyists, including corporate lobbyists, public interest lobbyists, and citizen lobbyists.
The state can require lobbyists to register with the government and disclose their clients and activities. This way, the public can be aware of who is advocating for whom and what issues they are promoting. Additionally, the state can require lobbyists to follow certain ethical guidelines, such as avoiding conflicts of interest or undue influence.
For example, lobbyists may be prohibited from accepting gifts or campaign contributions from their clients. The state can also require lobbyists to disclose their expenditures, including their compensation and expenses incurred in lobbying activities.
This can help to prevent conflicts of interest by making it clear who is paying for lobbying efforts and how much they are spending. In summary, the state can prevent conflicts of interest arising for clients who employ contract lobbyists by requiring lobbyists to register and disclose their clients and activities to the public.
Additionally, the state can require lobbyists to follow certain ethical guidelines and disclose their expenditures.
To know more about lobbyists, refer here:
https://brainly.com/question/29639267#
#SPJ11
what is the goal of advertising? to help move consumers through the buying process to create interest and consumer hype to create consumer communities to provide feedback on products and services to define a product's value
The primary goal of advertising is to create interest and excitement among consumers so that they will take some action, usually buying the product or service. The correct answer is "to create interest and expectation in the consumer".
By presenting information in an appealing and creative way, advertising aims to draw attention to a product and make it more attractive to potential customers. Advertising also helps move consumers through the buying process, as it presents consumers with information they need to make informed decisions.
Additionally, advertising can create consumer communities that are interested in a particular product or service and provide feedback to help define a product's value.
In conclusion, the correct answer is ''create interest and consumer hype.''
See more about advertising at https://brainly.com/question/1658517.
#SPJ11
in the two months following the september 11, 2001, attacks on the united states, consumption also declined. this caused a
The terrorist attacks on September 11, 2001 had a dramatic impact on the U.S. economy. In the two months immediately following the attack, consumer spending and consumer confidence both decreased significantly. This caused a decrease in demand for goods and services, leading to a sharp decline in economic activity.
Business investment also fell in the wake of the attacks, as uncertainty in the economy made it difficult for companies to make long-term commitments. Similarly, the stock market suffered, with the Dow Jones Industrial Average losing 14% of its value in the two months following the attacks. The Federal Reserve responded by cutting interest rates to encourage investment and consumer spending.
The attacks also led to a decrease in international tourism and travel, which had a further dampening effect on the economy. This was particularly evident in areas close to New York City, such as New Jersey and Connecticut, where airports and transportation hubs were shut down in response to the attack.
Finally, the attacks also caused an increase in government spending. This was primarily used to pay for military operations overseas, as well as to compensate individuals and families affected by the attacks.
In conclusion, the terrorist attacks on September 11, 2001 had a severe impact on the U.S. economy. In the two months following the attack, consumer spending, business investment, and stock market values all decreased significantly. Furthermore, international tourism and travel was reduced, and government spending increased.
To know more about U.S Economy:
https://brainly.com/question/9296500
#SPJ11
suppose an economy experiences an increase in its saving rate. the higher saving rate leads to a higher growth rate of productivity t/f
True, an increase in the saving rate can lead to a higher growth rate of productivity in an economy.
Here's a step-by-step explanation:
1. Higher saving rate: When people in an economy save more of their income, the overall saving rate in the economy increases. This means that there is more money available for investments.
2. Increased investments: With a higher saving rate , financial institutions have more funds to lend to businesses and entrepreneurs. This leads to increased investments in capital goods, research and development, and new technologies.
3. Capital accumulation: As more investments are made, the economy's capital stock (machines, buildings, infrastructure) expands. Capital accumulation is an essential factor in enhancing productivity since it provides workers with better tools and resources to produce goods and services.
4. Technological advancements: Investments in research and development can result in technological advancements and innovations. These advancements can lead to better production techniques, increased efficiency, and improved goods and services, all of which contribute to higher productivity.
5. Human capital development: A higher saving rate can also result in investments in education and training. A well-educated and skilled workforce is better equipped to innovate and use new technologies, which can boost productivity.
6. Higher growth rate of productivity: As a result of capital accumulation, technological advancements, and human capital development, the economy's productivity growth rate increases. This means that the economy can produce more goods and services with the same amount of resources.
In summary, an increase in the saving rate can lead to a higher growth rate of productivity in an economy, as it enables more investments in capital goods, research and development, and human capital, ultimately contributing to better production techniques, increased efficiency, and improved goods and services.
To know more about growth rate of productivity in an economy refer here:
https://brainly.com/question/28909673
#SPJ11
Everything else being equal, the higher the discount rate, the higher the present value.
a. True
b. False
False. Everything else being equal, the higher the discount rate, the lower the present value.
The present value is the worth of an amount of money in the future today, at a given discount rate.
The discount rate is the interest rate used to calculate the present value of future cash flows. The present value decreases as the discount rate increases, and it increases as the discount rate decreases. Therefore, the statement "the higher the discount rate, the higher the present value" is incorrect.
The opposite is true. The higher the discount rate, the lower the present value. This is because a higher discount rate implies a higher opportunity cost of money, meaning that future cash flows are worth less in today's dollars. Conversely, a lower discount rate means that future cash flows are worth more in today's dollars, resulting in a higher present value.
Learn more about Present Value: https://brainly.com/question/20813161
#SPJ11