how do automatic stabilizers respond when output is above potential output? government spending falls and tax payments rise to help keep the economic expansion in check. rises and tax payments fall to help move the economy out of recession. rises and tax payments fall to help keep the economic expansion in check. falls and tax payments rise to help move the economy out of recession.

Answers

Answer 1

Automatic stabilizers respond when production exceeds potential production To assist rein in the economic expansion, government spending declines and tax revenues rise.

What impact do automatic stabilizers have?

People's reactions to recessions are tempered by automatic stabilizers, which also help them survive if they lose their employment or their businesses suffer. As they increase aggregate demand when it lags, they also play a crucial macroeconomic function in reducing the length and severity of downturns. Without the direct involvement of policymakers, automatic stabilizers counteract swings in economic activity. Without any changes to the tax code or other legislation, when incomes are high, tax liabilities increase and a person is less likely to qualify for government assistance. A byproduct of earlier regulation was the development of automatic stabilizers.  As long as no new laws are passed after they are in existence, they are effective. For instance, unemployment insurance has a self-correcting mechanism.

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Related Questions

When purchasing her new car, molly traded in her previous car, which was a buick in good condition. the dealer offered her 80% of the listed trade-in value for her car, giving her a total of $1,340.80. what was molly’s previous car?

Answers

The value of Molly's car, given the trade - in value and percentage of the previous car, can be found to be $ 1, 676

What is a trade - in value ?

The car that customers trade in when they purchase a new car from the dealership is known as a trade-in. The trade-in value that a dealer will typically offer for the car is almost always less than the market value that you could obtain by selling it privately.

A well-kept example of a well-liked model may be a trade-in, which the dealer can repair and resell on the used car lot for a profit. Second, the dealer is facilitating the customer's decision to purchase the new vehicle. Any other justification for accepting a trade-in entails extra work, extra expense, and unpredictability for the dealer.

The trade - in value for Molly's car can be found by the formula :

= Listed trade in value of Molly's car / Percentage of the car

= 1, 340.80 / 80 %

= $ 1, 676

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a technology company wants to increase sales for their newest product, so they decide to invest in advertising and direct marketing for the product. this is an example of

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Answer:

Traditional marketing or direct response marketing

A technology company wants to Increase sales for their newest product, so they decide to invest in advertising and direct marketing for the product. This is an example of traditional marketing or direct response marketing.

What is traditional marketing?

Traditional marketing is the process of fulfilling the target audience’s needs using offline channels and making a profit out of it. In simpler terms, traditional marketing refers to the satisfaction of needs and wants for consumers via those marketing channels that existed before individuals had access to modern digital platforms.

It involves fulfilling the 4ps of marketing without making use of digital marketing channels. This traditional marketing mix includes: Building a product that operates and fulfils customers’ demands online. For example, a washing machine. Using a pricing strategy that’s not dependent on online channels. Using offline channels of distribution to reach out to the customers. Promoting the product using offline channels like TV, radio, newspapers, etc.

Traditional marketing encompasses a wide range of advertising and marketing strategies.

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year 1 2 3 4 5 free cash flow $25 million $28 million $32 million $36 million $41 million home industries is expected to generate the above free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 4% per year. if the weighted average cost of capital is 10% and home industries has cash of $20 million, debt of $40 million, and 100 million shares outstanding, what is the expected current share price of home industries?

Answers

Free cash flow at Year 6 = FCF 5 x (1 + Growth rate) = 32 x 1.03 = $32.96. Business value at Year 5 = 32.96 / (0.06 - 0.03) = $1,098.6667 million.

What is cash flow? Cash flow is the money that comes in and goes out of a company. It is the generation of income and the payment of expenses. Cash inflows result from either the generation of revenue through the selling of goods and services, money borrowed, or money earned through investments.If more cash is coming into the company than leaving the company, you are experiencing positive cash flow. But if more cash is leaving the company than coming into the company, then you are experiencing negative cash flow. Keep in mind that just because you are experiencing negative cash flow for the moment doesn't mean you are going to suffer a loss, because cash flow is dynamic. Cash flow is reported on the company's cash flow statement, which is also called a statement of cash receipts and disbursements.

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finding significant differences is exciting to marketing researchers because it means that the researcher will have something that is potentially very useful to report to the client. true false

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Marketing researchers enjoy discovering major variances since it indicates they will have information that might be extremely beneficial to relay to the customer. The statement is accurate.

Marketing research is the methodical gathering, recording, and analysis of qualitative and quantitative data about marketing-related problems for goods and services. Discovering and analyzing the effects of modifying marketing mix components on consumer behavior is the goal.

This entails defining the data needed to solve these concerns, devising the information gathering strategy, and overseeing and putting the data collection process into practice. These outcomes and conclusions, together with their ramifications, are communicated to those with the authority to take action on them after data analysis.

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how would putting a price on natura attributes and ecological services affect demand for reneabe reouces

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Different characteristics of ecological services.

People have a tendency to value each service and product differently because natural features and ecological services are priced differently.

The consumer would so stand to gain the most.

The ecological services are those that make our lives easier and preserve the harmony of the natural world. The prices of each commodity or service would benefit the customers. The user would benefit from the natural features such as the fresh water and other elements like sunlight, rain, fresh air, etc. on several occasions.

Wetlands are places or areas where the soil is occasionally covered in water. These fall under the categories of marshes, bogs, fens, swamps, and shallow water. Peatlands are another type of area that has partially degraded organic materials.These are several, crucial areas that are present in various biospheres. They enhance water quality, stop soil erosion and loss of land mass, safeguard coasts.

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in what way does ias 16 (property, plant, and equipment) differ from u.s. gaap concerning fixed asset measurement subsequent to initial recognition?

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There are significant discrepancies between the GAAP regulations codified in ASC Topic 360 and the IFRS rules written in IAS 16 in the field of fixed assets and the resulting depreciation. The cost method is the sole technique to originally report a fixed asset under GAAP.

What are GAAP and IAS 16?

IAS 16 permits both upward and downward revaluation of fixed assets, however US GAAP permits only upward revaluation. IAS 16 allows for asset revaluation based on fair value to be performed. Each asset type must be revalued on an annual basis. Property, plant, and equipment are initially measured at cost, then measured again using a cost or reval­u­a­tion model, and de­pre­cia­ted such that its de­pre­cia­ble amount is distributed sys­tem­at­ically during its useful life. IAS 16 was reprinted in December 2003 and is effective for fiscal years beginning on or after January 1, 2005.

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epiphany is an all-equity firm with an estimated market value of $300,000. the firm sells $250,000 of debt and uses the proceeds to purchase outstanding equity. compute the weight in equity and the weight in debt after the proposed financing and repurchase of equity. group of answer choices 0.50, 0.50 0.42, 0.58 0.17, 0.83 0.58, 0.42

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The weight in equity and the weight in debt after the proposed financing and repurchase of equity 0.17, 0.83.

What does the accounting term "weight" mean?

Weighted refers to changes made to a number to represent various ratios or "weights" of the components that make up the number. For instance, a weighted average measures each component differently than measuring each component equally, taking into account the proportionate relevance of each component. According to their shares in the overall consumption of households, the weights are intended to illustrate the relative importance of the various commodities and services. The weight assigned to each good or service defines how a change in price will affect the index as a whole.

= [tex]\frac{250000}{300000}= 0.83[/tex]

= 1-0.83= 0.17.

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what are the consequences of bad logistics management for a company? select all that apply. a more paperwork b problems with customer relations c higher costs d longer hours

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The consequences of poor logistics management for company include:  customer relationship issues, higher costs and longer hours.

What leads to bad logistics?

Poor time management. Increased costs and hidden costs due to lack of knowledge. Disruption of operational processes. I don't have the right software for live tracking.

What impact will logistics have on company?

Successful logistics in business entails more effectiveness, lower costs, higher production rates, better inventory control, more efficient storage space utilization, higher levels of customer and supplier satisfaction, and better customer experiences.

What are the consequences of poor management for suppliers?

In short, poor supplier performance costs a company money, time, and reputation, increases the risk of customer churn, and can even threaten a company's viability. The impact on suppliers is also negative. Efforts to ensure performance regressions can be fixed.

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according to the resource-theory of the firm discussed in mcnett's article the ethics of workplace diversity, the main reason for an organization to have a more diverse workforce would be

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To draw in the most exceptional and varied talent that can give one a competitive edge in various areas.

How do you define resource-based theory?

According to resource-based theory, a corporation is best positioned for long-term success if it has access to valuable, uncommon, difficult-to-replicate resources. These strategic resources can act as a springboard for developing solid competencies that, over time, may result in improved performance.

What does the word "resources" mean?

It means a source of supply or support—an option. A natural source of riches or income; generally used in the plural. Frequently used in the plural.: a natural phenomenon or feature that improves the standard of living for people.

The original question is:

According to the resource theory of the firm discussed in McNett's article the ethics of workplace diversity, the main reason for an organization to have a more diverse workforce would be _______.

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which of the following is not a difference between monopolies and perfectly competitive markets? question 4 options: monopolies can earn profits in the long run while perfectly competitive firms break even. monopolies charge a price higher than marginal cost while perfectly competitive firms charge a price equal to marginal cost. monopolies choose to produce the quantity at which marginal revenue equals marginal cost while perfectly competitive firms do not. monopolies face downward sloping demand curves while perfectly competitive firms face horizontal demand curves.

Answers

The following is not a difference between monopolies and perfectly competitive markets : monopolies charge a price higher than marginal cost while perfectly competitive firms charge a price equal to marginal cost

A competitive marketplace exists because of consumer needs. they are a marketplace structure wherein opposition among numerous companies is at its highest. There are 4 styles of markets: ideal aggressive, monopoly, monopolistically aggressive market, and oligopolistic.

In economics, competition is a state of affairs where different monetary companies are in contention to achieve goods which might be restricted by means of various the elements of the marketing mix: fee, product, promoting and location.

From a microeconomics perspective, competition can be motivated by means of 5 primary factors: product capabilities, the wide variety of sellers, boundaries to entry, records availability, and vicinity.

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one country on the top-ranking and one country on the bottom ranking of the gdp(nominal) and reasons

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Answer:

There are common factors which work in economy making either an economy to be a top ranking GDP or bottom ranking GDP. Following are the factors.

1. Investment- If the investment by the individuals takes place in regular mode takes place in an economy then the rise in GDP can be seen and if the vice versa happens the GDP falls.

2. Standard of Living- If the unemployment rate is low in the economy and based on employment level the demand does not fall in the economy then a GDP of an economy rises.

3. Government Expenses- If the government is making expenses to maintain the demand and the production level in the economy then the GDP of the economy can rise and if it all does not happen then GDP can fall.

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Explanation:

the copyright clause prohibits the government from creating a special kind of monopoly around intellectual property. true or false

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The following statement "the copyright clause prohibits the government from creating a special kind of monopoly around intellectual property" is true.

A market that has "no competition" results in a situation where one individual or business is the only supplier of a given good or service. This contrasts with oligopoly and duopoly, which include a small number of vendors controlling a market, and monopsony, which refers to a single entity's dominance of a market to buy an item or service.

Monopolies are therefore defined by a lack of viable replacement products, a lack of economic rivalry to manufacture the commodity or service, and the potential for a high monopoly price that is substantially beyond the seller's marginal cost and generates a large monopoly profit.

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a loan that requires the borrower to pledge specific assets as collateral is called a(n) loan.

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An asset (such a car or piece of property) is pledged as security for a loan in a secured loan, making the asset a secured debt owed to the lender.

How do loans with security operate?

Loans that are secured by an asset are called secured loans. This means that the lender will ask you which of your assets you want to use as collateral when you apply for a secured loan. Following that, the asset will be subject to a lien held by the lender until the loan is returned in full.

What exactly is an asset?

An asset is something that has monetary value or the potential to be profitable. For instance, a machine, a financial instrument, or a patent

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Which pair of equations would correctly calculate their compound interests? jaina: a = 400 (1 + 0. 07) cubed, tomas: a = 300 (1 + 0. 04) cubed jaina: a = 300 (1 + 0. 03) superscript 7, tomas: a = 400 (1 + 0. 03) superscript 4 jaina: a = 400 (1 + 0. 03) superscript 7, tomas: a = 300 (1 + 0. 03) superscript 4 jaina: a = 300 (1 + 0. 07) cubed, tomas: a = 400 (1 + 0. 04) cubed.

Answers

The pair of equations that would correctly calculate their compound interests is D. Jaina: a = 300 (1 + 0. 07) cubed, Tomas: a = 400 (1 + 0. 04) cubed.

What is the compound interest formula?

When the interest is compounded, the compound interest formula for determining the compounded amount is P(1 + r)ⁿ.

The compound interest is determined by subtracting the Principal from the compounded amount as P(1 + r)ⁿ - P.

Compounding interest is a system that charges interest on accumulated interest together with the principal.

Compound Interests  

Accounts Name  Principal  Interest Rate            Number of

                                                                     Years Compounded

Jaina                        $300           7%                   3 Once a year

Tomas                     $400           4%                   3 Once a year

Compound Interest Formula:

P(1 + r)ⁿ - P

Where P is the principal, r is the compound interest rate, and n is the number of years compounded.

Jaina's compounded amount at 7% after three years = 300 (1 + 0.07)³

Tomas' compounded amount at 4% after three years = 400 (1 + 0.04)³

Thus, the correct pair of equations to compute compound interests is Option D.

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Question Completion:

Jaina and Tomas compare their compound interest accounts to see how much they will have in the accounts after three years. They substitute their values shown below into the compound interest formula. Compound Interest Accounts Name Principal Interest Rate Number of Years Compounded Jaina $300 7% 3 Once a year Tomas $400 4% 3 Once a year. Which pair of equations would correctly calculate their compound interests?

Answer:

th answer is I love you. and just joking around

alphabet company, which uses the periodic inventory method, purchases different letters for resale. alphabet had no beginning inventory. it purchased a thru g in january at $9.00 per letter. in february, it purchased h thru l at $11.00 per letter. it purchased m thru r in march at $12.00 per letter. it sold a, d, e, h, j and n in october. there were no additional purchases or sales during the remainder of the year. if alphabet company uses the weighted average method, what is the cost of its ending inventory? (round the per unit cost to two decimal places and then round your answer to the nearest whole dollar.)

Answers

Using weighted average method, the cost of its ending inventory is $67.

Ending inventory = 5.56* 12 = 67

Weighted average method:

The weighted average considers the relative frequency or relevance of particular variables in a data set.

Sometimes a weighted average is more precise than a basic average.

In a weighted average, the allocated weight is multiplied by each data point value, which is then added together and divided by the total number of data points.

Because of this, a weighted average can increase the accuracy of the data.

Investors in stocks use a weighted average to keep track of the cost basis of the shares they have acquired over time.

A weighted average, as opposed to a basic average, takes into account the relative weight or contribution of the items being averaged. As a result, it assigns more weight to the average items that happen relatively more frequently.

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what is the difference between value line smart investment survey-smart investor and value line and value line- investor 600

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The main difference between the Value Line Smart Investment Survey-Smart Investor and the Value Line Investor 600 is the scope of the coverage, with the Smart Investment Survey-Smart Investor covering a wider range of stocks, mutual funds, and ETFs, while the Investor 600 is focused on a specific group of 600 stocks.

Value Line is a financial research and analysis company that offers a range of investment products and services, including the Value Line Smart Investment Survey-Smart Investor, the Value Line Investor 600, and the Value Line Investment Survey.

The Value Line Smart Investment Survey-Smart Investor is a subscription-based service that provides in-depth analysis and ratings for a wide range of stocks, mutual funds, and exchange-traded funds (ETFs). It is designed for individual investors who are looking for comprehensive and reliable investment information to help them make informed investment decisions.

The Value Line Investor 600 is a subscription-based service that provides in-depth analysis and ratings for 600 of the largest, most liquid stocks listed on the New York Stock Exchange (NYSE) and the NASDAQ. It is designed for investors who are looking for information on a specific group of stocks and want to focus their research on a select list of companies.

The Value Line Investment Survey is a subscription-based service that provides in-depth analysis and ratings for approximately 1,700 stocks listed on the NYSE, NASDAQ, and American Stock Exchange (AMEX). It is designed for investors who want broad coverage of the stock market and want to research a wide range of companies.

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which of the following is not a market performance ratio?
A. debt ratio

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Debt Ratio is not a market performance ratio

Market value ratios are financial measurements that assess stock prices, evaluate them in relation to competitors' stock prices as well as other data points.

These ratios monitor public corporations' financial results to help us better comprehend their place in the market and A financial measure called the debt ratio shows what proportion of a company's assets are financed by debt.

It is the ratio of total assets (the total of current assets, fixed assets, and other assets like "goodwill") to total debt (short-term and long-term obligations).

Total debt to total assets is the debt ratio.

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sabrina duncan had gross earnings for the pay period ending 10/15/20x1 of $5,815. her total gross earnings as of 9/30/20x1 were $104,600. if social security taxes are 6.20% on a maximum earnings threshold of $132,900 per year, sabrina's social security withheld from her 10/15/20x1 paycheck would be: multiple choice $239.07 $224.13 $360.53 $416.81

Answers

The amount deducted by Sabrina's 10/15/20x1 paycheck for social security purposes is $224.13.

What do taxes mean?

Taxes are compulsory payments made by the a government organization, whether regional, regional, or federal, to people or businesses. Tax revenues are used to fund a variety of government initiatives, like Medicare and Medicaid as well as public infrastructure and services like roads and schools.

Briefing:

Total earnings

= Gross earnings for the pay period ending 10/15/16 + Total gross earnings as of 9/30/16

=  $5,815 + $104,600

= $110,415

These National Insurance taxes are calculated based on an annual income cap of $132,900.

The Social Security deduction from Sabrina's 10/15/16 paycheck will indeed be

= ( Total earnings - $132,900 ) × Social Security tax rate

= ( $110,415 - $132,900 ) × 0.062

= $22485 × 0.062

= $224.13

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how would you respond to a naysayer that says store business and concessions business will go down if we give out free hats and free food as part of group sales packages?

Answers

would let them know that it's a misconception Offering free food or drinks adds value to the customer without discounting products or services.

What is meant by products?

A product is anything that can be supplied to a market in order to satiate a customer's need or desire. In marketing, a product is an item, system, or service that is made accessible for consumer usage in response to consumer demand.Products are sometimes referred to as merchandise in the retail sector, and they are purchased as raw materials in the manufacturing sector before being sold as finished goods.A form of product that is also considered is a service.In project management, products are the formally defined project deliverables that include or assist in achieving the project's goals.Product liability may apply to hazardous goods, particularly physical ones that harm users or bystanders.

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the current price of a bond is $95 and its duration is 9 years. if ytm decreases from 4% to 3.8%, what is the new price of the bond?

Answers

The most recent price at which a security was sold on an exchange is the current price. The bond's new price is $96.64.

For buyers and sellers, the current price acts as a benchmark. Present pricing is a good reflection of current worth, but depending on supply and demand, the actual price of the next sale could be greater or lower. Current prices are those that are listed at a specific time and are considered to be in nominal value. Constant prices are expressed in real value, which has been adjusted for changes in prices relative to a reference point or base line.

Modified duration calculation:

Duration modified by (1 + Yield to maturity) = Duration /

Duration modified = 9 / (1 + 0.04)

Duration modified: 9 / 1.04

Duration modified = 8.6538

This means that for every 1% movement in the yield to maturity, the bond price will move 8.6538% in the opposite direction.

In the example, the yield to maturity falls by 0.2% (4 - 3.8), increasing the price of the bond by 1.73076% (8.6538 / 1 * 0.2).

Bond price adjustment: $95 * 1.0173076

The bond's new price is $96.64.

The bond's new price is $96.64.

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country a has a comparative advantage over country b in the production of shoes, if a. country a can produce shoes at a lower monetary cost than country b can. b. country a can produce shoes using fewer resources than country b can. c. the demand for shoes is higher in country a than in country b. d. country a can produce shoes at a lower cost in terms of other goods than country b can.

Answers

Country a has a comparative advantage over country b in the production of shoes, Country A can produce shoes at a lower cost in terms of other goods than other B.

What do you have been comparative advantage?

In an economic model, agents who can produce a particular good at a lower relative opportunity cost or autarky price—that is, at a lower relative marginal cost before trade—have a competitive advantage over rivals. Someone has a comparative advantage if they can produce something for less money than anyone else. Superiority in a particular field is different from comparative advantage.

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hearth company uses the units-of-production method to estimate depreciation. the company purchased a new machine for $38,000 that will produce an estimated 230,000 units over its useful life. the estimated residual value of the machine is $2,000. what is the depreciation rate per unit?

Answers

The depreciation rate per unit for Heatherbrae Co. is $0.133. The unit-of-production depreciation method estimates the depreciation expense per unit by dividing the depreciable amount by the estimated useful life of the asset.

For each period, the depreciation expense per unit is multiplied by the units of production to determine the period's total depreciation expense.

Data and Calculations:

Cost of machine = $48,000

Residual value = $4,000

Depreciable amount = $44,000 ($48,000 - $4,000)

Estimated useful life in units = 330,000

Depreciation expense per unit = $0.133 ($44,000/330,000)

Thus, the depreciation rate per unit for Heatherbrae Co. is $0.133.

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a company is evaluating an investment which has an initial investment of $4,000. annual net cash flows are expected to be $2,000 over the next three years. the company requires a 10% annual return. the present value of $1 factor for 10% and 1 period is 0.9091; 2 periods is 0.8264; and for 3 periods is 0.7513. the break-even time is between: multiple choice question. 1 and 2 years 2 and 3 years 3 and 4 years 0 and 1 year

Answers

The break-even time is between: - 2 and 3 years.

Does NPV take original investment into account?

Using the concept of net present value, all projected future cash flows, including the initial capital investment, are calculated as to their current value (NPV).

Net present value (NPV) is the current value of cash inflows minus cash outflows over a period of time (NPV). NPV is a metric used in capital budgeting and investment planning to assess the profitability of a proposed investment or project.

The current value of a stream of future payments, or NPV, is calculated using the appropriate discount rate. The general rule is that projects with a positive NPV are beneficial to pursue, whereas those with a negative NPV are not.

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which key strategic leadership action plays a key role in influencing how the firm conducts its business and regulates and controls employees' behavior?

Answers

How to Maintain a Successful Organizational Culture Strategic leadership action has a significant impact on how the company runs its operations and governs and controls employee behavior.

Which of the following describes strategic leadership's objective?

The major goals of strategic leadership are to improve strategic productivity, foster creativity, and create an environment that motivates staff to work hard, act independently, and advance their own ideas.

What are the three phases of developing a leader?

leadership's three phases- We are moving past the first stage of leadership. Let's examine the initial level of leadership, which focuses on action. building the conditions for excellence, from 2 to 3. In the third level, multifunctional leadership is discussed, the drive to increase.

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a contract under which a seller forbids a buyer to purchase products from the seller's competitors is a tying arrangement. true false

Answers

The statement is false, that a contract under which a seller forbids a buyer to purchase products from the seller's competitors is a tying arrangement.

A tying arrangement happens when a vendor makes the purchase or lease of one good or service contingent on the customer's acceptance of the purchase or lease of another good or service through a legal provision or technological restriction. When the buyer purchases the two items in an unfixed or unspecified proportion, as in a "requirements tie-in" transaction, economists use the word "tying" most frequently.

Typically, a bundled sale is one in which the items are only offered in predetermined ratios (e.g., one pair of shoes and one pair of shoe laces or a newspaper, which can be viewed as a bundle of sections, some of which may not be read at all by the customers). Another name for bundling is "package tie-in." The phrases "tying" and "bundling" are occasionally used synonymously in American case law.

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Stockholders of a company may be reluctant to finance expansion through issuing more equity because?

Answers

Because their profits per share may drop, shareholders of a corporation could be hesitant to finance growth through the issuance of new shares.

What do stockholders do?

A person who holds at least 1 of a firm ’s capital stock is known as a stockholder or a shareholder of the company. Stockholders, who make up the majority of the company's owners, usually benefit from success through rising stock prices.

What separates a shareholder from a stockholder?

Additional Courses. Both the phrases shareholder and shareholder refer to the holders of shares in a firm, giving them co-owners of the company. Therefore, you may refer to firm control using either phrase since they both relate to the same thing.

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what processes include devising and maintaining a workable scheme to ensure that the project addresses the organization's needs?

Answers

Planning processes include devising and retaining a possible scheme to make certain that the mission addresses the organization's needs.

It allows us to perceive our desires simply. It makes us determine surely and concretely what we want to do to have the effect on society that we want. It allows us to ensure that we all understand our intention and what we want to do to reach it through related to all people within the planning manner.

An amazing marketing strategy no longer handiest allows entrepreneurs awareness of the unique steps important for them to make enterprise ideas prevail, but it additionally helps them to obtain quick-time periods and lengthy-term objectives.

Putting desires that challenge every person inside the agency to strive for higher performance is one of the key factors of the planning procedure. The planning process group has procedures from every knowledge area.

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describe how free market features could be introduced to help alleviate the social problem through free market operations of supply and demand.

Answers

Government intervention is absent in a free market, and supply and demand and voluntary exchange serve as the only pillars of the economic system.

What do you mean by "demand"?

The consumer's desire to buy a specific commodity or service is known as demand. Market demand is the demand on the market for a specific good. The total demand in the economy for goods and services is known as aggregate demand. The price of a commodity or service is determined by the demand and supply balance.

What does "demand" mean?

Relevant Lessons

A fundamental tenet of economics is the law of demand, which holds that demand for a good increases when prices are low and decreases when prices are high. During Black Friday sales, when customers rush to purchase items at steep discounts, the law of demand is in effect.

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john is the head of a federal agency. his agency is lacking funds to support a new policy implementation, so it is allowed to borrow funds from another government agency. what are these funds a part of?

Answers

Overestimating the effect of government action carries a risk (neglects other factors) Where there is no one, dominating policy or agency engaged, it is challenging to apply. Policies evolve when they are put into practice.

These foundational principles include (1) creating a clear goal; (2) encouraging initiative; (3) empowering employees; (4) providing staff development or resources; (5) restructuring, monitoring, and problem-solving; and (6) planning. These presumptions offer a plan for the duties and method that assist improvement in effective alterations.

The total of a country's yearly budget deficits, less any surpluses, is its national debt. When the government spends more than it brings in, there is a deficit. The government borrows money by offering debt obligations to investors in order to cover its budget deficit.

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suppose that monetary neutrality and the fisher effect both hold and the money supply growth rate has been the same for a long time. other things the same a higher money supply growth would be associated with . question 34 options: both higher inflation and higher nominal interest rates. neither a higher inflation rate nor a higher nominal interest rate. a higher inflation rate, but not higher nominal interest rates. a higher nominal interest rate, but not higher inflation.

Answers

Monetary neutrality and the fisher effect both increase the money supply growth rate increasing the inflation and nominal rate at the same rate.

What is the Fisher effect?

The relationship between inflation and both real and nominal interest rates is outlined in the Fisher Effect, an economic hypothesis developed by economist Irving Fisher. According to the Fisher Effect, the real interest rate is equal to the nominal interest rate less the anticipated inflation rate.

Irvin Fisher, an economist, is credited with creating the Fisher effect. The impartiality of money has a direct bearing on this effect. It claims that real interest rates are stable in economies and that variations in nominal interest rates are a function of changes in anticipated inflation.

Hence/Therefore,

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