Suppose consumption demand of GDP decreases during a recession while the other demands are unaffected. What happens to the equilibrium real interest rate in the economy?

Answers

Answer 1

Answer:

Since consumption represents almost 70% of the GDP, any change in consumption affects the economy more than any change in the rest of the components of the GDP (net exports, investment, government). If consumption decreases, then the real interest rate will decrease.

The higher the interest rate, the lower the consumption level. This should increase the savings = more investment in the economy, but since consumption is so important to the economy, a decrease in consumption will decrease the equilibrium interest rate. This lowering in the real interest rate will be carried out in order to try to increase consumption.


Related Questions

In terms of market efficiency, short selling most likely: Group of answer choices leads to excess volatility, which reduces market efficiency. has little effect on market efficiency because short sellers face the risk of unlimited losses. promotes market efficiency by making assets less likely to become overvalued.

Answers

Answer:

promotes market efficiency by making assets less likely to become overvalued.

Explanation:

Market efficiency can be defined as a measure of the degree to which prices in a market reflect all available and significant information at a specific period of time. A market is said to be efficient when all information has been incorporated into the prices of goods and services, and as such it is impossible to "beat" the market because there are no overvalued or undervalued stock.

In terms of market efficiency, short selling most likely promotes market efficiency by making assets less likely to become overvalued, because stocks are usually not allowed to be overpriced before selling them.

It will cost $7,000 to acquire an ice cream cart. Cart sales are expected to be $3,600 a year for three years. After the three years, the cart is expected to be worthless as the expected life of the refrigeration unit is only three years. What is the payback period

Answers

Answer:

It will take 2 years and 344 days to cover for the initial investment.

Explanation:

Giving the following information:

Initial investment= $7,000

Cash flow year 1 trough 3= $3,600

The payback period is the time required to cover for the initial investment:

Year 1= 3,600 - 7,000= -3,400

Year 2= 3,600 - 3,400= 200

To be more accurate:

(3,400/3,600)*365= 344

It will take 2 years and 344 days to cover for the initial investment.

The characteristics of a world market where global competition prevails include A. a market situation where competitive conditions across national markets are linked strongly enough to form a true world market and where leading competitors typically compete head to head in many different countries. B. minor cost variations from country-to-country (as concerns production, distribution, sales and marketing, and other primary components of the industry value chain) and minimal cross- country trade restrictions. C. a competitive environment comprised of so many competitors that no company has a sizable worldwide market share. D. many companies racing for global market leadership, with most contenders using the same basic type of competitive strategy and positioned in the same strategic group. E. low barriers to entry, such as large number of rivals that the actions of any one rival have little impact on the sales and market shares of other rivals, and key success factors that vary from country to country.

Answers

Answer:

A. a market situation where competitive conditions across national markets are linked strongly enough to form a true world market and where leading competitors typically compete head to head in many different countries.

Explanation:

The characteristics of a world market where global competition prevails include a market situation where competitive conditions across national markets are linked strongly enough to form a true world market and where leading competitors typically compete head to head in many different countries.

For instance, the fierce competition between the manufacturers of mobile phones such as Android devices and iOS devices. Also, manufacturers of vehicles are into head to head competition in different countries.

Payroll deductions are the same for all employees. True False

Answers

Answer:

may be yeah...it can be true

Answer:

False

Explanation:

because it would mean that all the jobs that are done are the same just like your work position like manager, and other stuff like that

Joseph Brown signs a contract with Lewis Johnson allowing Johnson to buy Brown's home for $63,200 anytime between the date of the contract and the following February 8. Brown also agrees not to sell his home to anyone else until after February 8 and received $300 as consideration. This contract is called

Answers

Answer:

An option.

Explanation:

In this scenario, Joseph Brown signs a contract with Lewis Johnson allowing Johnson to buy Brown's home for $63,200 anytime between the date of the contract and the following February 8. Brown also agrees not to sell his home to anyone else until after February 8 and received $300 as consideration. This contract is called an option.

An option is a contract (financial derivatives) which provide buyers the right, however not the obligation, to buy or sell an underlying asset at an agreed price and specified period of time (date). It comprises of call options and put options.

Part 1 Using the refusal skills sequence, complete the case scenario by indicating how you would refuse to be involved in the situation. Include all eight steps of the refusal sequence, and use the format indicated below for each step. (List the step then the action) Example: 1. What are they asking me to do and why? They are asking me to participate in an activity that is illegal and against my personal values. (Double space after each answer.) Case Study Number ____________ 1. What are they asking me to do and why? 2. Label what they are asking you to do (i.e. illegal, dangerous, etc.). 3. Determine the consequences if you get caught or if you participate in this activity. 4. Communicate my refusal. 5. Say no. 6. Use "I" statements. 7. Suggest an alternative. 8. Leave the scene and avoid questionable places.

Answers

Incomplete question.

Full Question and Explanation:

1. What are they asking me to do and why?

They are asking me to do things both illegal and sexual that I do not believe in doing.

2. Label what they are asking you to do (i.e. illegal, dangerous, etc.).

It is Illegal, sexual, and dangerous

3. Determine the consequences if you get caught or if you participate in this activity.

I could get infected with a disease or even get arrested by law enforcement agents.

4. Communicate my refusal.

I do not do such things and I will not follow others in their wrongful course.

5. Say no.

No matter what you say, I say no!

6. Use "I" statements.

I feel that you do not consider my feelings when you try to force me because I don't want to do these things.

7. Suggest an alternative.

No, lets go and watch a movie at the movie theater.

8. Leave the scene and avoid questionable places.

My mom must be waiting for me by now, I'll have to go home.

Tasty Pasta in an American fast food restaurant chain with locations in 20 countries. When the company enters a new foreign market, it usually selects a combination of franchising and master subsidiaries. These master subsidiaries are joint ventures with local partners because of the advantages joint ventures bring to Tasty Pasta. Specifically, joint ventures are politically more acceptable and they:_________.A) Help realize location and experience curve economies
B) Avoid high transport costs
C) Ensure a steady stream of loyalty payments .
D) Tend to provide a higher control over technology.
E) Bring a degree of local knowledge to the subsidiary.

Answers

Answer: Bring a degree of local knowledge to the subsidiary.

Explanation:

Joint Venture is a form of business organization whereby two or more parties come together and use the skills and resources that they both have to achieve a common goal.

Based on the scenario in the question, Joint ventures are politically more acceptable and they also bring a degree of local knowledge to the subsidiary.

Adams is selling his property to Katter for $94,000, and Katter is assuming an existing mortgage at 4-1/2% interest per annum with the unpaid balance of $9,200. Mortgage payments are due the first of each month and include interest up to but NOT including the day of payment. The last payment was made March 1, and settlement is to be March 26. Compute the interest proration that will be credited to the buyer using a 365-day year, and holding the buyer responsible for the day of closing.

Answers

Answer:

$69.53

Explanation:

loan's balance = $94,000

interest expense per year = $94,000 x 4.5% = $4,230

interest expense per day = $4,230 / 365 = $11.5890411

the seller is responsible for 25 days of interest = 25 x $11.5890411 = $289.73

the buyer is responsible for 6 days of interest = 6 x $11.5890411 = $69.53

Exercise 7-4 Direct write-off method LO P1 Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from its customer Leer Company. 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above selected transactions of Dexter.

Answers

Answer:

Date            Account Titles and Explanation        Debit          Credit

March 11       Bad debt Expenses                             $45,000

                          Account Receivables                                       $45,000

                    (To record uncollectible accounts receivables)

Date            Account Titles and Explanation        Debit          Credit

March 29    Account Receivables                         $45,000

                         Bad debt Expenses                                          $45,000

                    (To record reversal of written off accounts receivables)

Date            Account Titles and Explanation       Debit          Credit

March 29     Cash                                                  $45,000

                             Accounts Receivables                               $45,000

                     (To record receipt of cash from customers)

Companies that organize their sales force by customer and territory; product and territory; product and customer; or territory, product, and customer are using a ________ sales-force structure.

Answers

Answer:

complex.

Explanation:

A complex sales-force structure is one that contains a diverse sales team design. The organizations that adopt this sales force structure are usually those that offer a diverse range of products for each type of customer and in different geographic areas, so you need to combine different types of sales force structures to achieve your sales objectives and goals. sales according to the preferences and profile of each customer in each location.

function of the money.​

Answers

Answer:

The function of money is that it allows us to buy things and exchange it for things we want.

Marquez, the hotel manager, knows that the number of guests at his hotel has significantly decreased. Therefore, corporate has made it clear that the amount each department can spend on certain items will need to be cut for the year. Marquez needs to work with the hotel department managers on how to cut costs, as a part of his role as

Answers

Answer:

Resource allocator.

Explanation:

Marquez, the hotel manager, knows that the number of guests at his hotel has significantly decreased. Therefore, corporate has made it clear that the amount each department can spend on certain items will need to be cut for the year. Marquez needs to work with the hotel department managers on how to cut costs, as a part of his role as resource allocator.

A resource allocator can be defined as an individual who is saddled with the responsibility of assigning and management of available or scarce resources to effective use.

This is a strategic process which helps a business entity or organization to achieve its goals, objectives and success by efficiently avoiding wastage.

What can you tell about google's Promotional Mix and Promotional strategies ?(10 Marks)

Answers

Answer:

The answer is below

Explanation:

Google is known to utilize Promotional Mix and Promotional Strategy that depends largely on viral, or referral, and marketing techniques.

Hence, Google's Promotional Mix and Promotional strategies can be summarized in the following key points:

1. AdWords internet ads: for example, there is a call to action links such as "Download Google Chrome Today" with phrases like "lightning-fast, clean and simple" on the Internet and their other data-enabled apps.

2. Google's YoúTube Channel: this is where they advertise their products through visuals, and the targeted audience gets to view them.

3. Minimalist internet advertising technique: For example, placement of Google link on the homepage of Google Chrome.

4. Offline Billboards: for example "Going Google" and "Google Adopts New..." Billboards

5. Referral: This is done through users, where individuals encourage their friends to use Google products.

Danton, a popular performer, dies. His spouse Caitlin sells their house to Buck. Unknown to Caitlin or Buck, in one of the closets is the master recording of an unreleased album. With respect to this recording, Buck can

Answers

Answer:

not keep it because there was no voluntary consent to its sale.

Explanation:

In this situation, Buck can not keep the unreleased album because there was no voluntary consent to its sale. When Danton died, all of his belongings became Caitlin's property. Since she did not know about the album or even that it was in the house when selling the house to Buck, she never agreed to transfer ownership of the album to Buck. Therefore, the album still belongs to Caitlin and Buck must return it.

A public radio station with a June 30 year end collects $100,000 in annual membership dues every January 1. Paying membership dues provides few direct benefits, which are not restricted to members. On January 1, the radio station should record the $100,000 as ______.

Answers

Answer:

Deferred Revenue

Explanation:

The public radio station has a year ending of June 30 and collects these dues on an annual basis therefore the dues received in January 1 are not yet earned. Under accrual accounting, and applying the revenue recognition principle, revenue which is received in this way has not yet been earned since these dues are collected/recorded annually but are billed before(january 1)the year end,and therefore are charged as liability until they are earned at year end then they are converted to revenue

The general expenses necessary to run the business are called Question 30 options: operating expenses. annual projections. 10-year forecasts. profits.

Answers

Answer:

Operating expenses

Explanation:

Before a business yields a profit as an output , there is a need for some input from the business owners. One of these input is operating expenses .

Operating expenses is supporting cost of keeping the business running in the course of normal production , different from the cost of production and is necessary as every form of other cost may not get a desired result without the operating cost.

Examples include rent , payroll ,transportation , security fees among others.

Answer:

operating expenses

Explanation:

textbook

James,the marketing manager for an automobile manufacturer,observes frequent conflicts between two of his subordinates,Jeff and Kevin.He asks the human resource department to help,and the department's training manager,Kelly,investigates.She tells James that the two subordinates lack interpersonal communication skills,but would be likely to improve with proper training.This scenario suggests that Kelly has conducted a(n)_____.A) institutional analysisB) market analysisC) person analysisD) organization analysisE) instructional analysis

Answers

Answer: Person analysis

Explanation:

Based on the scenario that have been given in the question, the scenario suggests that Kelly has conducted a person analysis.

A person analysis is a phase which helps to identify the individuals that are in an organization who lacks certain skills and should therefore be trained.

A person analysis helps to show the individuals that aren't meeting the organization's desired performance.

Olin, a professional artist and art teacher, convinces Plato, who has no artistic ability, that he has considerable talent and induces him to pay Olin $10,000 for art lessons. When Plato realizes the truth, he files a suit against Olin. Plato is most likely to recover on the basis of

Answers

Answer:

Fraud

Explanation:

Fraud can be defined as a criminal deception or deceit that is aimed at resulting in financial gain.

From the above question, Olin defrauded Plato of $10,000 despite knowing that Plato had no talent. This is fraudulent and as such can help Plato's case against olin.

Cheers.

South Korea has developed amazingly, with huge corporations making vast amounts of money and giving everyone there a high standard of living, while the vast majority of people in the Central American nation of Guatemala are plagued by extreme poverty, violence, and poor living conditions. This is an example of:

Answers

Answer: Uneven Development

Explanation:

South Korea is one of the success stories of the last century. After the Korean War devastated large parts of the Korean peninsula, foreign aid poured in and the people embraced development fully. This led to the development of large corporations such as Samsung making vast amounts of money and giving everyone there a high standard of living.

Guatemala on the other hand has been ravaged by poverty and poor living conditions for a long time resulting from a bloody civil war that lasted for decades. This led to gangs been formed to compete for resources as well as illegal activities being carried out such as drug trafficking. This only made things worse.

These are 2 countries are a prime example of how countries in the world are experiencing Uneven Development. How in one nation the standards of living are high and people are safer but on the same planet and in another nation people are living in abject poverty and fearing constantly for their lives.

Customers can build their own computers with Dell's online configurator. They simply have to answer a few questions and choose from a menu of product attributes, prices, and delivery options. The design of a Dell customized computer is made possible through the use of a

Answers

Answer: Choiceboard

Explanation: A choiceboard may be explained as an online tool usually developed by product makers or manufacturers which affords consumers to make bespoke or custom products by allowing them the flexibility of making personal choices about the type, attribute and specifications they would want their personal product to posses. The choiceboard will contain a list of various options available on each of the specifications a product could have and the customer makes his or her choice allowing them to build a fully customized product.

Which statement below best captures the overall point and focus of the New York Times article, Document 3?
A) The article expresses deep surprise and anxiety on the part of the New York Times' editorial board, about the idea of blacks playing for their beloved Brooklyn Dodgers.
B) The article's intent is to show sympathy for the ballplayers from southern states who are being asked to change their ways and beliefs so quickly.
C) The news story marks the historical event of the first black man being called up to play in the major leagues and expresses some concern over how Robinson will be treated by his major league peers.
D) The main focus of the article is on the shrewd business instincts of Branch Rickey and his desire to "tap" into the market for ticket sales to black New Yorkers.

Answers

Answer:

Correct Answer:

C) The news story marks the historical event of the first black man being called up to play in the major leagues and expresses some concern over how Robinson will be treated by his major league peers.

Explanation:

Option C ıs the best statement which captures the overall point and focus of the given New York Times article, Document 3.

The market for plywood is characterized by the following demand and supply equations: QD = 800 – 10P and QS = 50P – 1,000, where P is the price per sheet of plywood and Q measures the quantity of plywood. What is the size of the deadweight loss if the government imposes a price ceiling of $25 per she

Answers

Answer:

$3,750

Explanation:

at $25 per sheet of plywood:

total demand = 800 - (10 x 25) = 800 - 250 = 550

total supply = (50 x 25) - 1,000 = 1,250 - 1,000 = 250

the equilibrium price is:

800 - 10P₁ = 50P₁ - 1,000

1,800 = 60P₁

P₁ = 1,800 / 60 = 30

the equilibrium quantity (Q₁) is:

Q₁ = 800 - (10 x 30) = 800 - 300 = 500

at 250 units, the price should be:

250 = 800 - 10P₂

10P₂ = 550

P₂ = $55

total deadweight loss = 0.5 x  (P₂ - P₁)  x (Q₂ - Q₁) = 0.5 x  ($55 - $25)  x (250 - 500) = 0.5 x $30 x -250 = -$3,750

"I am extremely disappointed with the performance on our account over the last month. Lead volume has dropped, yet the total monthly spend is consistent with previous months. Why? Are you guys even paying attention to what is going on? Also, you still haven’t provided any suggestions on how to reduce the overall cost per lead as well as drive more traffic to our site. We need to remedy this so we can move forward."

Answers

Answer:

In order to drive more traffic to our site we need to consider the problems visitors face when they visit our site, an issue could be that our site is not responding quick, or there is lacking of an essential feature, or the website is not properly marketed to the relevant persons who are interested in our products and or services.

In order to reduce the cost per leads we may need to find a different supplier of marketing our website, or may be we can target specific audience which may lower the cost per lead. Also we can market our website by other means for example providing web address on the sales receipt.

Explanation:

In order to drive more traffic to our site we need to consider the problems visitors face when they visit our site, an issue could be that our site is not responding quick, or there is lacking of an essential feature, or the website is not properly marketed to the relevant persons who are interested in our products and or services.

In order to reduce the cost per leads we may need to find a different supplier of marketing our website, or may be we can target specific audience which may lower the cost per lead. Also we can market our website by other means for example providing web address on the sales receipt.

Kimberly owns a cupcake shop in Newport Beach, California. The market for cupcakes is very competitive. At Kimberly’s current production level, her marginal cost is $31 and her marginal revenue is $27. To maximize profits, Kimberly should:

Answers

Answer:

Reduce production

Explanation:

Profit is maximised where marginal revenue equals marginal cost. Because marginal cost is greater than marginal revenue, Kimberly should reduce production unit the point where marginal cost equals $27.

Marginal cost is the increase in cost as a result of increasing production by one unit.

Marginal revenue is the increase in revenue as a result of selling one extra unit of a product.

Which of the following is NOT a person as defined by the Uniform Securities Act?
A) A small unincorporated investment club.
B) Guelph, a small city outside of Toronto, Ontario, that maintains an investment account at a brokerage house to invest surplus funds.
C) A child prodigy for whom his mother, as custodian, opened an account at a major securities firm.
D) XYZ Dry Cleaners, Inc., whose shareholders all work on the premises and also offer financial advice to customers who request it.

Answers

Answer:

C) A child prodigy for whom his mother, as custodian, opened an account at a major securities firm.

Explanation:

The Uniform Securities Act is statute that guides state on how they design their securities laws. The Security and Exchange Commission set up these guides to protect investors from securities fraud at the state level

According to the Uniform Securities Act a person is an individual, trust, corporation, unincorporated company, government, or a division of government that enters into a legal contract.

A child is not able to enter into a legally binding contract, so they are not considered to be a person according to the Uniform Securities Act.

An adult can be the only individual considered as a person. They can open the account on behalf of the child

Century Real Estate’s primary broker is John Kerr. John is licensed as the broker of that company and he is licensed as a broker sales associate in his brother-in-law’s firm of Boch Real Estate, where John only works once a week or so. In this case:

Answers

Answer:

The broker is doing two different jobs; so it is okay to have two different licenses.

Explanation:

In this case, since the broker is doing two different jobs then it is okay for him to have two different licenses. In a hypothetical case that the individual Broker was doing the same job role for two different companies then that would be considered a form of conflict of interest and may cause problems with both firms in the future. Since this is not the case, then he should not have any problem.

What are four importance of a business plan

Answers

-avoid mistakes/disasters (lack of teamwork, pricing, etc)
-setting objectives
-helps with development and growth
-create marketing strategy

Rovermand Corporation is a small organization in which each member of the company is clear about his or her responsibility and whom he or she must report to. The best feature of the organization is the quick decision making, owing to its simple and direct chain of command. In the context of organization models, Rovermand Corporation is a _____ organization.

Answers

Answer: Line

Explanation:

Line organization is defined as an organization where the basic framework for the organization is well spelt out, addressing the roles of the employees, from the top to the least, and to whom each reports to. It is the simplest and oldest pattern for organization framework and it's also known as chain of command or scalar principle. Rovermand Corporation operates in a line organization pattern.

Blossom Company purchased a new machine on October 1, 2017, at a cost of $66,000. The company estimated that the machine has a salvage value of $5,700. The machine is expected to be used for 70,000 working hours during its 6-year life. Compute the depreciation expense under the straight-line method for 2017 and 2018, assuming a December 31 year-end. (Round answers to 0 decimal places, e.g. 5,275.)

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Purchase price= $66,000

Salvage value= $5,700

Useful life= 6

First, we need to calculate the annual depreciation using the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (66,000 - 5,700) / 6= 10,050

2017:

Annual depreciation= (10,050/12)*3= $2,512.5

2018:

Annual depreciation= $10,050

Which term describes a category of attacks that generally are conducted over short periods of time (lasting at most a few months), involve a smaller number of individuals, have little financial backing, and are accomplished by insiders or outsiders who do not seek collusion with insiders?

Answers

Complete Question:

Which term describes a category of attacks that generally are conducted over short periods of time (lasting at most a few months), involve a smaller number of individuals, have little financial backing, and are accomplished by insiders or outsiders who do not seek collusion with insiders?

Group of answer choices.

A. Critical infrastructure category

B. Unstructured threat category

C. Highly structured threat category

D. Structured threat category

Answer:

B. Unstructured threat category.

Explanation:

An unstructured threat category is a term which describes a category of attacks that generally are conducted over short periods of time (lasting at most a few months), involve a smaller number of individuals, have little financial backing, and are accomplished by insiders or outsiders who do not seek collusion with insiders.

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