Suppose Americans decide to save more of their incomes. If banks lend this extra saving to businesses, which use the funds to build new factories, this leads to _______ (faster or slower) growth in productivity because workers will have _______ (more or less) equipment with which to work.

a) True or False: Only factory owners will benefit from the higher productivity because they will receive a return on their additional investment.

b) True or False: Society receives a "free lunch" when it builds new factories.

Answers

Answer 1

Answer:

a. False

b. False

Explanation:

Suppose Americans decide to save more of their incomes. If banks lend this extra saving to businesses, which use the funds to build new factories, this leads to faster growth in productivity because workers will have more equipment with which to work.

a. The benefits from higher productivity is received by every participants in the society, i.e., factory owners, in terms of increased profit, workers in terms of increased income (normally equal to value of marginal product).

b. The society doesn’t receive a “free lunch” because there is an inter-temporal trade-off between savings today and increased consumption tomorrow due to increased productivity.


Related Questions

Which ride hailing driver may take the standard mileage rate

Answers

Answer:

Ride hailing driver may take the standard mileage rate is explained below in detailed answer.

Explanation:

Standard mileage rates are not possible for:

1.Fleet industry operating more than 4 carriers together

2.If carriers are employed as industry articles

3.on carriers on which devaluation is claimed

Standard mileage rate is possible for the leased carrier in a situation that the standard rate is utilized for the entire life of the lease.

The standard rate may be possible to:

Danica has a three-year contract on her 2017 Honda Civic rendered she demands a standard rate for the whole lease life of the vehicle

The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $18,500 per year forever. a. If the required return on this investment is 5.9 percent, how much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Suppose the company told you the policy costs $460,000. At what interest rate would this be a fair deal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer:

a. $313,559.32

b. 0.0402, or 4.02%

Explanation:

The computation is shown below:

Here we use the following equation

PV = C ÷ r

Present value

= $18,500 ÷ 0.059

= $313,559.32

b. Now the interest rate is  

As we know that

PV = C ÷ r

$460,000 = $18,500  ÷ r

r = $18,500 ÷ $460,000

= 0.0402, or 4.02%

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

Nick's Enchiladas has preferred stock outstanding that pays a dividend of $3 at the end of each year. The preferred sells for $55 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required return equal to the expected return)?

Answers

Answer: 5.45%

Explanation:

The value of a preferred stock is calculated by the formula;

Value = Dividend / required return

Making required return the subject we have;

Required return = Dividend/ Value

= 3/55

= 0.05455

= 5.45%

Stock in Daenerys Industries has a beta of 1.3. The market risk premium is 7 percent, and T-bills are currently yielding 4.5 percent. The company’s most recent dividend was $1.50 per share, and dividends are expected to grow at an annual rate of 8 percent indefinitely. If the stock sells for $36 per share, what is your best estimate of the company’s cost of equity?

Answers

Answer:

13.05%

Explanation:

Using CAPM Equation, Ke = Rf+Beta*(Rm-Rf)

= 0.045+1.3*(0.07)

= 0.136

= 13.60%

Using Dividend growth model, Ke = (D1/P0) + g

= (D0*(1+g)/P0) = g

= (1.50*(1+0.08)/36) + 0.08

= 0.125

= 12.50

The cost of equity (Ke) = 0.136 + 0.125 / 2

The cost of equity (Ke) = 0.261/2

The cost of equity (Ke) = 0.1305

The cost of equity (Ke) = 13.05%

Calvin received bimonthly paychecks of $2007.25 last year. If 17.1% of his yearly income got withheld for federal income tax. How much got withheld for federal income tax from each of Calvin's paychecks last year?

Answers

Answer:

343$

Explanation:

2007.25-17.1%=1664.01025

2007.25-1664.01025 = 343.23975

Answer:

343.23

Explanation:

Career elements that might demand a career earn a high salary include:
decision making
stress level
responsibility
all of the above

Answers

Answer:

All of the Above

Explanation:

I took the test on edge and is 100% correct!

Career elements that might demand a career to earn a high salary include all of the above.

What is the meaning of a career?

You maintain the same line of employment when you have a career. A career can consist of one or several jobs. You may work for a single company or several. A "career path" is another name for a career. Education, training, and work experience are all components of a career.

A "career" seems to be a job or occupation that a person pursues a sizable portion of their life. Additionally, there are prospects for training, development, advancement, or promotion in the field. Careers include things like those in medicine, education, the church (or priests), and law enforcement.

Having a good job may add many benefits to your life, as it may allow you to live comfortably and provide stability for yourself and your family. A job can be important, as finding fulfillment in work can be important to our overall well-being.

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Can someone please answer A-E please

Answers

I’m gonna need more point to answer that many questions L.mao

Incurring an expense for advertising on account would be recorded by:

a. Is the primary standard-setting body in the United States.
b. Is governed by the U.S. Securities and Exchange Commission.
c. Can overrule the FASB when their policies disagree.
d. Promotes the use of high-quality, understandable global accounting standards.

Answers

Complete Question:

Incurring an expense for advertising on account would be recorded by:

Group of answer choices

A) Debiting a liability account.

B) Crediting an asset account.

C) Debiting an expense account.

D) Debiting an asset account.

Answer:

C) Debiting an expense account.

Explanation:

Incurring an expense for advertising on account would be recorded by debiting an expense account.

This ultimately implies that, when a business firm incurs an expense such as on advertising its goods or services, the appropriate account on the balance sheet to record this will be to debit the advertising expense account and then credit the account payable.

Green tea Oreos in China, chocolate and peanut butter Oreos in Indonesia, and banana dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy.

a. an international
b. amultidomestic
c. a single country
d. a transnational

Answers

Answer:

a. an international

Explanation:

Yesteryear Productions pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $0.40 a share for two years commencing four years from today. After that time, the company plans on paying a constant $0.75 a share annual dividend indefinitely. How much are you willing to pay to buy a share of this stock today if your required return is 11.6 percent?

a. $3.78
b. $4.22
c. $4.37
d. $4.71
e. $4.98

Answers

Answer:

b. $4.22

Explanation:

The computation of the price that willing to pay is shown below:

But before that we need to do the following calculations

Terminal value at year 5 is

= 0.75 ÷ 0.116

= 6.46552

Now

Total cash flow is

= 6.46552 + .40

= 6.86552

And finally

Present value =(PVF at 11.6%,4 ×  D4 ) + (PVF at 11.6%,5 × CF5)

= (0.64468 × 0.40) + (0.57767 × 6.86552)

= 0.2579+ 3.9660

= $4.22

Hence, the correct option is b.

In a command economy, Individuals fellow thir self-interest without government intervention True or False İf false, correct the statement.

Answers

Answer:

False

Explanation:

In a command or planned economy, the factors of production are owned and controlled by the government.  The government makes all the significant economic decisions such as production, distribution, and pricing.  

The government prepares a central plan for the entire economy. The plan determines the production level, the goods and services to be produced, and their prices.  The central government employs all workers. The private sector does not exist.

two types of purchase orders.

Answers

Explanation:

blanket purchase order and contract purchase order

standard purchase order
blanket purchase order
contract purchase order
planned purchase order

"Every individual necessarily labors to render the annual revenue of the society as great as he can. He generally indeed neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good." – Adam Smith what this quote means

Answers

Answer:

This quote highlights Adam Smith - Self Interest, Free Reign, Invisible Hand theories

Explanation:

Adam Smith is the Father of Economics.

His self interest theory states that : Individuals working for the best of self interest implies maximum welfare for society as a whole.

Hence, the free reign idea suggests that people as 'self interest' guided rational economic agents should be left free. The invisible hand of market restores any distortions.

Government intervention is considered to be not only unnecessary, but distortionary.

To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential.

For example:

A bond's _____ refers to its face value and the amount of money that the issuing entity borrows and promises to repay on the maturity date.
A bond issuer is said to be in _____ if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates or more of the issue's restrictive covenants.
The contract that describes the terms of a borrowing arrangement between a firm that sells a bond Issue and the investors who purchase the bonds is called _____.

Answers

Answer:

Par valueDefaultIndenture

Explanation:

A bond's par value refers to its face value and the amount of money that the issuing entity borrows and promises to repay on the maturity date.

A bond issuer is said to be in default if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates or more of the issue's restrictive covenants.

The contract that describes the terms of a borrowing arrangement between a firm that sells a bond Issue and the investors who purchase the bonds is called indenture.

Jessica saw an advertisement in the newspaper in which a company was selling its product in the local supermarket for $99, thus offering a discount of $25. Jessica considered it a good offer and bought the product. Later, Jessica came to know that the company sells the same product to direct consumers for $90. Which right was violated by this deceptive advertisement?
A.
right to choose
B.
right to redress
C.
right to be heard
D.
right to information
E.
right to safety

Answers

c: right to be heard

Answer: C

Explanation: right to be heard.

In the Income-Expenditures model, it is assumed that investment is independent of the level of (current) income. This is:

Answers

Answer:

I'm not sure what this question is about, but the concept of the income expenditures model and its components is the following:

In the income (or aggregate) expenditures model, its author (Keynes) established certain assumptions in order to analyze how the economy works as a whole. His assumptions included that investment, government spending and net exports were all independent from income level.

When the economy is at equilibrium, total expenditures (GDP) = income level = consumption + government + investment + net exports

Another important assumptions are:

marginal propensity to consume (MPC) + marginal propensity to save (MPS) = 1consumption = autonomous consumption + [MPC x (total income level - taxes)]

Savings = investment increase when disposable income increases or real GDP increases.

This model is used to explain the relationship between labor and production levels, and how they are affected by the economy's total expenditures. By increasing expenditures, the demand for labor and products/services will increase.

At age 48, Jamal set up a 401(k) where he plans to deposit $15,000 at the beginning of each year until age 70. Find the amount of the annuity if he invests in a stock fund that yields 6% compounded annually. *

Answers

Answer:

900,884.35

Explanation:

Deposit = 15,000

i = 6%

n = 1

t = 70 - 48 = 22

So, Fv = Deposit * (1+i/n)^n-t - 1 / i/n

Fv = 15,000 * (1+0.06)^22 - 1 / 0.06

Fv = 15,000 * (1.06)^22 - 1 / 0.06

Fv = 15,000 * 3.60353741658/0.06

Fv = 15,000 * 60.058956943

Fv = 900884.354145

Fv = 900,884.35

Hence, the amount of the annuity if he invests in a stock fund is $900,884.35

The Timberlake-Jackson Wardrobe Co. has 10.8 percent coupon bonds on the market with eight years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $1,129.70, what is the YTM?

Answers

Answer:

the yield to maturity is 8.50%

Explanation:

The computation of the yield to maturity is shown below:

Given that

Future value = $1,000

Present value = $1,129.70

PMT = $1,000 × 10.8% = $108

NPER = 8

The formula is shown below:

= RATE(NPER;PMT;-PV;FV;TYPE)

The present value comes in negative

After applying the above formula, the yield to maturity is 8.50%

Hence, the yield to maturity is 8.50%

An examination of Hyong Corporation's inventory accounts revealed the following information:

Raw materials, June 1: 46,000 units
Raw materials, June 30: 51,000 units
Purchases of raw materials during June: 185,000 units

Hyong’s finished product requires four units of raw materials. On the basis of this information, how many finished products were manufactured during June?

a. 70,500.
b. 45,000.
c. 57,750.
d. 47,500.
e. None of the other answers are correct.

Answers

Answer:

Production= 45,000 units

Explanation:

Giving the following information:

Raw materials, June 1: 46,000 units

Raw materials, June 30: 51,000 units

Purchases of raw materials during June: 185,000 units

First, we need to calculate the raw material used in production:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 46,000 + 185,000 - 51,000

Direct material used= 180,000

Now, the production for the period:

Production= 180,000/4

Production= 45,000 units

On January 1, 2019, Ted purchased a small software company for $200,000. He paid $120,000 for the fixed assets of the company and $80,000 for goodwill. How much amortization may Ted deduct on his 2019 tax return for the purchased goodwill?

a. $5,750
b. $90,000
c. $6,000
d. $0
e. $5,333

Answers

Explanation:

46 u64yccf fgffffffy

In determining compensation strategy, a major strategic decision is whether to mirror competitors pay.

a. True
b. False

Answers

Answer:

True

Explanation:

Compensation is the amount that is paid to an employee for work done or services rendered. It is monetary and non monetary payment that is given to a worker.

For compensation to be attractive to employees, it needs to be comparable to compensation of other competitors in the industry.

This will reduce the rate at which employees move to other companies.

But when compensation nos lower in a company they stand the risk of losing their workers to other companies that offer better pay

The most significant conceptual difference between the arbitrage pricing theory (i.e. APT or factor model) and the capital asset pricing model (CAPM) is that APT _____________.

a. places less emphasis on market risk
b. recognizes multiple unsystematic risk factors
c. recognizes only one systematic risk factor
d. recognizes multiple systematic risk factors

Answers

Answer:

Option C: Recognizes only one systematic risk factor

Explanation:

Arbitrage pricing theory (APT) is a theory of risk-return relationships gotten from no-arbitrage and considerations in large capital markets

APT was said to be developed by Steve Ross, 1976 and it uses "No-Arbitrage" Assumption. It was designed mainly to provide "economic" variables to the determination of asset pricing.

capital asset pricing model (CAPM) is simply a model that shows the required rate of return on a security to its systematic risk as taken up or measured by beta.

What is the government’s aim in setting quotas? to create more competition in the market to increase sales of domestic goods to keep tariffs high to limit export of domestic goods

Answers

Answer:

to increase sales of domestic goods

Explanation:

B

Depending on the particular situation and the government's goals, different quotas may be set by the government. A government might impose quotas for the following reasons:

To safeguard domestic industriesTo restrict the availability of specific itemsTo control commercial relationsTo adhere to international agreements

How do tariffs and quotas protect the domestic industry?

By increasing the cost of their competitors' goods, tariffs are designed to protect domestic industry. Tariffs, whilst they may increase prices for consumers, can also harm domestic businesses operating in linked industries. In the industries that are protected, tariffs can also reduce competition.

This can assist guarantee that domestic producers have a sizable enough market share to continue earning a profit and creating items in the nation. In some circumstances, a government may impose export limitations on certain goods to guarantee that they are still available for domestic use.

Governments may use quotas to control the flow of goods into and out of their territories. A few international agreements, like the WTO accords, permit governments to set import limits in certain situations.

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Rossdale Co. stock currently sells for $68.69 per share and has a beta of .87. The market risk premium is 7.30 percent and the risk-free rate is 2.89 percent annually. The company just paid a dividend of $3.53 per share, which it has pledged to increase at an annual rate of 3.20 percent indefinitely. What is your best estimate of the company's cost of equity?

Answers

Answer:

8.5%

Explanation:

we can calculate the company's cost of equity in two different ways:

Re = risk free rate + (beta x market risk premium) = 2.89% + (0.87 x 7.3%) = 9.24%

or

we can use the dividend growth model

P₀ = Div₁ / (Re - g)

Re - g = Div₁ / P₀

Re = Div₁ / P₀ + g

Div₁ = $3.53 x 1.032 = $3.64296P₀ = $68.69g = 3.2%

Re = $3.64296/$68.69 + 3.2% = 8.5%

Personally, I would consider the second calculation to be more exact since the market knows better.

The following table lists the components needed to assemble an end item, the manufacturing or purchase lead times (in weeks) for typical lot sizes, amount on hand, and the direct components of each item and, in brackets, the number of each component for each parent.



Item Lead Time Amount on

Hand Direct

Components

End item 1 - L(2), C(1), K(3)

L 2 10 B(2), J(3)

C 3 15 G(2), B(2)

K 3 20 H(4), B(2)

B 2 30

J 3 30

G 3 5

H 2 -
If 40 units of the end item are to be assembled, how many additional units of B are needed? (You don’t need to develop the MRP tables.)
An order for 40 units of the end item is scheduled to be shipped at the start of week 8. What is the latest week that the components of the order can be started and the order still be ready to ship on time? (You don’t need to develop the MRP tables.)

Answers

Answer:

first question:

in order to produce 40 units of the end item you need:

40 units of L: only have 10 on hand, so you need to produce 30 more40 units of C: only have 15 on hand, so you need to produce 25 more40 units of K: only have 20 on hand, so you need to produce 20 more

in order to produce L, C and K you need 75 units of B but only have 30 on hand, so you would need to buy 45 units of B.

second question:

you need 1 week to produce the 40 units of the end unityou need 3 weeks to produce L, C and K (C and K both take 3 weeks to produce or acquire)you need 3 weeks to produce or acquire B. J. G. H (G is the component that takes longer to produce or acquire out of these 4)total production time for 40 units of end item = 7 weeks

since the order is due at the start of the 8th week, you need to start this week.

Compared to a competitive industry, a monopolist is likely to achieve _____ producer surplus while generating _____ deadweight loss. a) less; more b) more; more c) more; less d) less; less

Answers

Answer:

b) more; more

Explanation:

Compared to a competitive industry , a monopolist is likely to achieve more producer surplus (i.e monopolist profits) while generating more deadweight loss (and there is no deadweight loss under competitive market ). Hence, option(B) is correct.

list sevn important of accounting and keeping​

Answers

Answer:

Accounting/bookkeeping

1. The income statement provides you with information about the profit and loss

2. The balance sheet gives you a clear picture on the financial position of your business on a particular date.

3.  Bookkeeping is important because it helps you budget.

4. Tax Preparation. In most cases, your business has to file a tax return every year.

5. Organization. Being organized is a skill every business owner should have.

6. Analysis. Bookkeeping is important because it helps with business analysis.

7. Planning Purposes . Bookkeeping presents the past financial performance of your company.

Explanation:

Hope this helps, sorry if it is not

Assume that Metlock Company estimates its bad debt expense based on 6% of accounts receivable. What amount of bad debt expense will Metlock record if it has an Allowance for Doubtful Accounts credit balance of $4,000

Answers

Answer:

Amount of bad debt expense = $47,540

Explanation:

Missing:

Accounts receivable = 859,000

Bad debt expense = 6% on Accounts receivable

Doubtful Accounts credit balance = $4,000

Find:

Amount of bad debt expense

Computation:

Amount of bad debt expense = [859,000 x 0.06] - 4,000

Amount of bad debt expense = [859,000 x 0.06] - 4,000

Amount of bad debt expense = [51,540] - 4,000

Amount of bad debt expense = $47,540

One student made the incomplete diagram shown below to represent the relationship between magma, igneous rocks, and metamorphic rocks: three ovals, labeled from left to right, metamorphic rock, magma, and igneous rocks respectively. Which of these is the correct next step to complete the diagram? Put an arrow labeled cools and crystallizes, pointing from igneous rocks to metamorphic rocks. Put an arrow labeled cools and crystallizes, pointing from metamorphic rocks to igneous rocks. Put an arrow labeled heat and pressure, pointing from igneous rocks to metamorphic rocks. Put an arrow labeled heat and pressure, pointing from metamorphic rocks to igneous rocks

Answers

Answer:

a

Explanation:

Answer:

C

Explanation:

I took the test.

A can't be because that would be Magma to Igneous rocks

B either because metaphoric rocks are getting with a high temperature and, as B says "cooling" well, that can't be the option.

D cannot be because that should be in reverse due preassure gets things with a high temperature and... well, xd.

So answer is C

give me brainliest pls :3

1. What is the percentage change in the PV of $100 due in 1 year when the interest rate changes from 5% to 10%

Answers

Answer:

Percentage decreased by 4.5%

Explanation:

Present value for 5%

Present value for 5% = 100 / (1+5%)

Present value for 5% =100/1.05

Present value for 5% = $95.24  (Approx)

Present value for 10%

Present value for 10% = 100 / (1+10%)

Present value for 10% =100/1.1

Present value for 10% = $90.91   (Approx)

Percentage Change = [(90.91/95.24)-1]100

Percentage Change = -4.5%  

Percentage decreased by 4.5%

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