Answer:
$100 billion
Explanation:
The Keynesian Multiplier is a theory that states that if spending on private consumption increases and the net expenditure by the government leads to an increase in the total GDP by more than the value of the increase. From the Keynesian example, the answer is 100 billion dollars.
Which of the following contract subject matters would not be covered under the UCC?
a. a contract for the sale of a mobile home from the manufacturer
b. a contract for the sale of a mobile home from a previous owner
c. a contract for the sale of a mobile home plus its lot
d. All of the above are under the UCC.
Answer:
Correct option is (c)
Explanation:
UCC is the abbreviation for Uniform commercial code that has been established for the purpose of sale of personal as well as business property.
Artcle 2 under UCC deals with sales and leases. As per this, any item identified as a good that is movable at the time of sale is considered subject matter of contract. So mobile house is covered under this article. Lot, however, is a single unit which is considered as a separate item for sale and cannot be combined with mobile home under UCC.
The contract that would not be covered under the UCC is a contract for the sale of a mobile home plus its lot. This is because the UCC typically does not cover real estate transactions and this contract involves the sale of real estate. In this case, a mobile home itself would generally be considered personal property, and contracts for its sale would be covered by the UCC.
Explanation:The subject of the question pertains to the Uniform Commercial Code (UCC), which governs transactions involving personal property but does not traditionally cover real estate. Therefore, option c, a contract for the sale of a mobile home plus its lot, would typically not be covered under the UCC. This is because it involves the sale of real estate - the lot - in addition to the sale of personal property - the mobile home. However, the specifics can sometimes vary state to state, depending on how they define a mobile home.
Options a and b, contracts for the sale of a mobile home from the manufacturer or a previous owner respectively, would commonly fall under the UCC since they involve the sale of goods - the mobile homes.
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Marley Office Goods budgeted 12,000 and produced 11,000 tape dispensers during June. The resin used to make the dispensers is purchased by the pound. Standards and actual costs follow for June: Standard Actual Materials 2 pounds @ $5.00 a pound 20,900 pounds $4.90 a pound Labor .25 hours $15.00 per hour 2,700 hours $15.30 per hour Variable Overhead $3.25 per dispenser $36,500 Fixed Overhead $1.50 per dispenser $17,250. How much is the standard cost of one tape dispenser?
Answer:
standard cost = $18.50 per dispenser
Explanation:
given data
standard actual cost
Materials = 2 pounds @ $5.00 a pound 20,900 pounds $4.90 a pound
Labor = .25 hours $15.00 per hour 2,700 hours $15.30 per hour
Variable Overhead = $3.25 per dispenser $36,500
Fixed Overhead = $1.50 per dispenser $17,250
to find out
standard cost of one tape dispenser
solution
first we get here Materials cost and labor cost that is
Materials = 2 pounds @ 5 per pound
material = $10
and
Labor = 0.25 Hrs @ 15 per hour
labor = $3.75
and Variable cost is $3.25 and Fixed Cost is $1.50
so standard cost will be here as
standard cost = $10 + $3.75 + $3.25 + $1.50
standard cost = $18.50 per dispenser
Lionel works in the corporate office of a chain of organic supermarkets. The company’s marketing makes clear that one of its core principles is ""building better communities by supporting family farms and local agriculture."" This statement represents a(n)
Answer: Espoused values
Explanation:
The statement is an example of the espoused value of the company Lionel works in.
An espoused value of an organization is the moral and corporate values an establishment operates with and would run with for many years.
Tony saved enough money to place $125,500 in an investment generating 9.25% compounded monthly. He wants to collect a monthly income of $1,350, at the beginning of each month, for as long as the money lasts. How many months will Tony have this income coming to him?
Answer:
It will last for 161.70 months
Explanation:
we need to solve for n in an annuity-due
[tex]C \times \frac{1-(1+r)^{-time} }{rate} (1+rate)= PV\\[/tex]
C $1,350.00
time n
rate 9.25% annual -->0.0925/ 12 = 0.007708333
PV $125,500.0000
[tex]1350 \times \frac{1-(1+0.0077083)^{-n} }{0.0077083} (1+0.00770833)= 125500\\[/tex]
[tex](1+0.0077083)^{-n}= 1-\frac{125500\times0.0077083}{1350}(1.00770833)[/tex]
[tex](1+0.0077083)^{-n}= 0.29 [/tex]
[tex]-n= \frac{log0.288891951699477}{log(1+0.0077083)
-n = -161.7057904
n = 161.7057
In California, Arthur wants to personally place business with RTS Insurance Company who is a nonadmitted carrier. The only way Arthur can rightfully place such business is if he seeks a:
Answer
Professional ethics and code of conduct regulation
Explanation:
California Professional code of conduct for insurance agent does not permit unethical placement, as the regulator view such as fraudulent practices.
Final answer:
Arthur can rightfully place business with the nonadmitted RTS Insurance Company in California by going through a surplus line broker, who is authorized to conduct business with insurers that are not licensed by the state insurance commissioner.
Explanation:
In California, if Arthur wants to personally place business with RTS Insurance Company, a nonadmitted carrier, he must do so through a surplus line broker. Nonadmitted insurance companies are not licensed by the state insurance commissioner and can only do business in the state through these brokers. Surplus line brokers are specialized in dealing with nonadmitted carriers and have the authority to place coverage with such insurers when the coverage cannot be obtained from admitted insurers.
An admitted insurance company has been licensed by the state and is subject to state regulation, which includes the approval of rates and the monitoring of the company's financial strength and claim-paying ability. In contrast, nonadmitted insurance companies operate outside of the state's direct regulatory framework but are still accessible through surplus line brokers who are regulated and authorized to transact with these insurers.
Which two statements are true about batch size, lead time, and utilization? (Choose two.)
a. Higher team member utilization leads to longer lead times
b. As batch size increases, lead time decreases
c. Large batches move through the system faster
d. Batch size is influenced by the Product Owner, utilization is influenced by the Development Team
e. There is no direct relationship between lead time and utilization
The statements 'Higher team member utilization leads to longer lead times' and 'Batch size is influenced by the Product Owner, utilization is influenced by the Development Team' are correct. High team member utilization can create bottlenecks, resulting in longer lead times while batch size and team member utilization are typically handled by the product owner and development team respectively.
Explanation:The two statements that are true about batch size, lead time, and utilization are: 'a. Higher team member utilization leads to longer lead times' and 'd. Batch size is influenced by the Product Owner, utilization is influenced by the Development Team'.
High team member utilization can result in longer lead times as an overworked team can easily become bottlenecked, slowing the overall process. Meanwhile, the batch size is usually determined by the product owner based on the requirements and the available resources, while the utilization (the percentage of time a team member is working) is largely determined by the development team based on their capacity and ability to do the work effectively and efficiently.
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Higher team member utilization can result in longer lead times, and batch size is determined by the Product Owner while utilization rates are managed by the Development Team. Increasing batch sizes often lead to longer, not shorter, lead times.
Explanation:When considering batch size, lead time, and utilization in a production or development environment, it is important to understand their relationships and the truths about how they affect each other. The two statements that are true concerning these concepts are:
Higher team member utilization leads to longer lead times. This is because when team members are highly utilized, there is less capacity to absorb variability or unexpected work, which can lead to delays and longer lead times.Batch size is influenced by the Product Owner, utilization is influenced by the Development Team. Product Owners often determine what goes into a batch (via prioritization and scope of work for a given period), whereas Development Teams manage their own capacity and how heavily they are utilized.Contrary to statement b, increasing batch sizes can often lead to increased lead times because larger batches take longer to process and move through the system.
Furthermore, statement c is misleading since although large batches may move but they are not necessarily faster and can be prone to causing delays in the system.
Lastly, statement e is incorrect as there is indeed a relationship between lead time and utilization, as higher utilization can lead to longer lead times.
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________ argues that ________.Rico Raines; starvation in many parts of the world could be avoided with adequate price controls Amartya Sen; famines are more likely to occur where there are unfettered newspapers and political competition David Ricardo; mass starvations are more likely in democracy Amartya Sen; famines don't happen in democracies.
Answer:
Amartya Sen; famines don't happen in democracies.
Explanation:
Amartya Sen, the Indian economist, winner of the Nobel Price of Economics in 1998, said this famous quote after completing extensive research on the topic of famine.
Amartya Sen argues that because in democracies, the governments have to be elected, they have an incentive to avoid famines since a famine is a political catastrophe (and a humanitarian one) that would effectivelly prevent any ruling party from being elected again if a famine takes place under its administration.
Changes in Government spending (G) will have a _________ impact upon the economy than changes in T because Government spending goes directly into the economy..
Answer:
Larger
Explanation:
Government spending alludes to cash spent by the open division on the procurement of products and arrangement of administrations, for example, training, human services, social insurance.
This incorporates open utilization and open speculation, and move installments comprising of salary moves.
Fiscal policy affects aggregate demand through changes in government spending and taxation. Those factors influence employment and household income, which then impact consumer spending and investment.
Financial strategy influences total interest through changes in government spending and tax assessment. Those variables impact work and family unit salary, which at that point sway customer spending and venture.
Bennett and Wood Inc. an interior designing firm, uses its print ads to help customers connect with them. The ads provide the company's e-mail and Web site details for customers to inquire about their services. In such a scenario, which of the following is Bennett and Wood Inc. using? a. Linkage media b. Letter shop c. Spiffs d. Broadsides e. Statement stuffers
Answer:
a. Linkage media
Explanation:
Linkage institutions are a part of the American political process that is mostly casual yet important, linking average citizens with their members.
There are four major types of organizations that are linked: media, interest groups, political parties, and elections.
Across today's world, the media is everywhere. Be it TV, papers, magazines and books, the Digital world, social networks, or other outlets, people will find out a lot of the political system.
It's the people who run for office, what their agenda and plans could be, and even the outcome of the election.
Answer:
A) Linkage media
Explanation:
Linkage media refers to one media outlet being linked to another. The print ads are part of print media (e.g. newspapers, magazines) and they include information that refers or directs potential customers to internet media (e.g. company's website and email).
Teagen owns a small cottage in which her elderly aunt Katie lives. Teagen wants to ensure that Katie can live in the cottage for the remainder of her life, but when Katie dies, title to the property will return to Teagen. Teagen can accomplish this objective by granting Katie a.
Answer:
Life Estate
Explanation:
A life estate is a property owned by a person only during the lifespan of the individual. It is also called a tenant for life and a lease for life.
A life estate is restricting because it forbids the recipient from selling the property which generates the profits before the death of the recipient.
However the property can't go on further than the beneficiary's life.
A client has been given atropine to cause mydriasis and cycloplegia. What is the expected outcome for this client?
Answer:
dilation of the pupil and loss of accommodation
Explanation:
Mydriasis is the dilation of the pupil of the eye. The dilation causes vision to be blurry.
Cycloplegia on the other hand is the loss of accommodation of the pupil and it is caused by the paralysis of the cilliary muscle of the eye. This paralysis causes the eyes to lose its ability to focus on things nearby.
Looking at this two conditions from the administration of atropine, the expected outcome of the client is blurry vision and inability to focus or see things close by(farsightedness).
I hope this helps.
Pamela is 47 years old and, to her friends, seems to be just drifting through life. She has a low-paying job which she does not get much satisfaction from, and yet she does not seem to really care. If Pamela were given the Ryff Well-Being Inventory, she would probably score the lowest on the dimension of
Answer:
Purpose in life
Explanation:
The Ryff Well-Being inventory was developed by psychologist Carol D. Ryff, the 42-item Psychological Wellbeing (PWB) Scale measures six aspects of wellbeing and happiness: autonomy, environmental mastery, personal growth, positive relations with others, purpose in life, and self-acceptance .
Purpose in Life: To get a high score the respondent's must have strong goal orientation and conviction that life holds meaning.
For Pamela not to care of her disatisfaction of her low-paying job is a reflection of how she thinks about life as meaningless and nothing to strive for. She would probably score lowest ion this dimension.
A woman approached Senator Adlai Stevenson when he was running for president, saying, "Senator, you have the vote of every thinking person!" The Senator is often credited with responding: "That's not enough, madam, we need a majority!" Which concept does this quip best reflect?
rational ignorance
opportunity costdiffuse
costs and concentrated benefits
median voter theorem
Answer:
Rational Ignorance
Explanation:
Understanding everything is unlikely. A level of ignorance is unavoidable, and we all have to determine for ourselves what is worth learning and recognizing.
Rational ignorance lets each one of us determine the most valuable information.
Rational ignorance means picking to remain ill informed on a subject deliberately because the cost of obtaining the data is greater than the expected possible advantages.
________ entails a sense of purpose for the firm that is higher than simply making a profit by selling products and services.
Answer:
Conscious Marketing entails a sense of purpose for the firm that is higher than simply making a profit by selling products and services.
Explanation:
The conscious marketing is such a marketing technique in which other people become advertiser of your business. They do such because of your best services or products.There are four principles of conscious marketing which are: Identification of greater goal of marketingConsideration of stake holdersCreating a conscious leadershipUnderstanding that all are decision are ethicalAnswer:
CONSCIOUS MARKETING PRINCIPLES entails a sense of purpose for the firm that is higher than simply making a profit by selling products and services.
Explanation:
Conscious marketing principles entails a sense of purpose for the firm that is higher than simply making a profit by selling products and services. It involves
-Recognition of marketing's greater purpose
-Consideration of stakeholders and their interdependence
-The presence of conscious leadership, creating a corporate culture
-The understanding that decisions are ethically based
Within joint command organizations, leadership and ethics considerations require us to _____ and consider not only personal experiences, but also the lessons learned from others' experiences - both positive and negative. a. seek out professional assistanceb. acknowledge our own prejudicec. know all of the factsd. critically think about
Answer: D. Critically think about
Explanation:
Joint command organizations, leadership and ethics considerations require us to critically think about and consider not only personal experiences, but also the lessons learned from others experiences.
Which sentence shows that the company is using backward integration?
Ryan heads a cell phone manufacturing company. After (seeing the growing
market demand for cell phones, Ryan decides to open retail outlets to sell cell phones.) He gains the advantage of being able to sell the cell phones at a cheaper rate compared to his competitors. On the other hand, Louis manages a sugar factory. After being in the manufacturing industry for five years, he decides to expand the business to achieve greater profits. (Louis ventures into the field of growing sugarcane to have good quality raw materials for his sugar factory, and have less dependence on the suppliers.)
Answer: Louis ventures into the field of growing sugarcane to have good quality raw materials for his sugar factory and have less dependence on the suppliers
Explanation:
If Louis Buys his own raw materials for his sugar factory he would not have to pay more to a supplier when it would be cheaper to have ypur own
Answer:
Louis ventures into the field of growing sugarcane to have good quality raw materials for his sugar factory, and have less dependence on the suppliers.
Explanation:
Backward integration is the process in which an organization acquires a company that supplies the raw material that it uses to manufacture its products. This is a type of vertical integration that allows an organization to guarantee the availability of the raw material it needs.
According to this, the sentence that shows that the company is using backward integration is: Louis ventures into the field of growing sugarcane to have good quality raw materials for his sugar factory, and have less dependence on the suppliers as he got into this to produce the raw material he needs to produce sugar.
Comprehensive coverage under the Personal Auto Policy pays for damage to the insured auto caused by all of the following except:
a. hail.
b. collision with a bird or animal.
c. nuclear accident
d. Falling tree branch from the neighbor's property
Answer:
c. nuclear accident
Explanation:
Personal Auto Policy is the most common policy for the insured. However, Nuclear accident is not covered under this policy. The policy covers hail, collision with animals and birds as well as falling tree branches.
Michael wanted to build a small princess castle for his daughter in the backyard. He decided to turn it into a do-it-yourself project, so he bought the disassembled parts of the castle from Big Ben Forts Inc. However, after the purchase, he found that the manual provided by the company gave vague directions that were hard to understand. He built the castle by following the manual, but after a few days the castle collapsed and injured his daughter who was playing inside. Which of the following actions can Michael take in this situation?
A) He can sue Big Ben Forts for defects in the packaging of their products.
B) He can file a negligence lawsuit against the store from which he bought the castle.
C) He can file a strict liability lawsuit against Big Ben Forts for failure to provide adequate instructions on assembling the product.
D) He can file a strict liability lawsuit against Big Ben Forts for failure to warn about the possible dangers of the product.
Answer:
C)
Explanation:
He can file a strict liability lawsuit against Big Ben Forts for failure to provide adequate instructions on assembling the product.
Michael may file a negligence lawsuit against Big Ben Forts Inc. for providing inadequate instructions or a strict liability lawsuit for a product defect, as the vague manual led to improper assembly and the injury of his daughter. Consulting a lawyer is vital to determine the correct legal approach.
Explanation:Michael can consider taking several legal actions in the given situation where a DIY princess castle that he built for his daughter collapsed. Given the circumstances that the manual was vague and hard to understand and that the castle collapsed causing injury to his daughter, he might have a few options:
He can file a negligence lawsuit against Big Ben Forts Inc. if it can be shown that the company breached a duty of care owed to him by providing inadequate instructions that led to the unsafe assembly of the castle.He can file a strict liability lawsuit against Big Ben Forts Inc. for failure to provide adequate instructions on assembling the product which is a defect in the product itself.Option A and B mentioned are less relevant, as there's no mention of defects in the packaging nor is there a specific store that he filed a lawsuit against unless it had its own separate negligence.Product liability may be an avenue if he can assert that the product was inherently dangerous and required clearer warnings and instructions to prevent harm.It is crucial to consult with a lawyer to assess the specific facts of the case, and to determine the appropriate course of action based on local laws and regulations.
Ronald defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Ronald's house sold for $29,000 and the unpaid balance of his loan is $40,000. What must the lender do to recover the $11,000 Ronald still owes?
Answer:
If the state allows it, the lender should seek a deficiency judgment.
Explanation:
First of all, 15 states don't allow deficiency judgments: Alaska, Arizona, California, Connecticut, Hawaii, Iowa, Minnesota, Montana, Nevada, New Mexico, North Carolina, North Dakota, Oregon, Washington, and Wisconsin.
A deficiency judgment is a lawsuit that a lender seeks in order to recover any amount of a loan that is not covered through a foreclosure sale. In this case, the lender will try to recover the $11,000 that Ronald still owes through a deficiency judgment.
Zedz Technicals, a provider of game programming, directed its highly skilled and technically sound salespeople to visit its customers without prior appointment and makes a sales pitch on the spot. Which of the following techniques was used by the sales team?A) Creative selling
B) Inbound telemarketing
C) Cold calling
D) Missionary selling
Answer:
Cold calling
Explanation:
Cold calling
Cold calling is a techniques used in the sales business. it can be refer as first process where first call has made to the potential customer. tradionally it is done through telephone but now it can done through face to face interaction or door knocking.
cold calling is very important step in making healthy relation with the customer for longer period of time.
Your company is evaluating two projects for consideration. Project A has a 40% probability of a $3,000.00 loss and a 60% probability of a $20,000.00 gain. Project B has a 30% probability of a $5,000.00 loss and a 70% probability of a $15,000.00 gain. Which of the projects would you select based on the greatest expected monetary value?
Answer:
We should select Project A as it has a higher expected value of 10,800 compared to Project B's expected value of 9,000.
Explanation:
We need to find the expected value of both the projects, using the formula
Expected value of project A= (probability of loss * value of loss)+(probability of gain* value of gain)
Expected value of project A= (0.40*-3,000)+(0.60*20,000)
=-1200+12,000=10,800
Expected value of project A= 10,800
Expected Value of project B= (probability of loss * value of loss)+(probability of gain* value of gain)
=(0.30*-5,000) +(0.70*15,000)=-1500+10,500=9,000
A home is appraised at $125,000 and the assessment level is 35%. There are a total of 40 mills in the taxing area.
What are the annual taxes?
Answer:
$1,750
Explanation:
First, we have to calculate the assessed value which can be determined using the below formula:
Assessed value=Appraised value of home*assessment level
=125,000*35%
=$43,750
The next step is to calculate the cost of each mill which can be calculated using the following formula:
Cost of each mill=Assessed value/1000
=43750/1000
=43.75
The final step is to find the annual taxes, which can be calculated using the following formula:
Annual taxes=cost of each mill*number of mills
=43.75*40
=$1,750
Corporate managers who fail to give due consideration to the rights of employees and other concerned groups in the pursuit of profit are treating these groups as means to the ends of stockholders. This is unjust according to the
a. financial framework
b. classical tradition
c.rights-based ethical framework
d. stockholder theory
Answer:
c.rights-based ethical framework
Explanation:
because the managers should honor the rights of their employees
Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a potential buyer, and finalize a deal above a stipulated price. Wilhelm contracts Chris, a real estate broker, and instructs him to only find a potential buyer and send them over to Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home improvement company to renovate the house. ReNowait completes its work and Martin pays them. Chris then searches for a suitable buyer and finds one in George. George buys the house and Chris is paid for his services. Who performs the role of the agent in this land sale transaction?
A) Wilhelm
B) Martin
C) Chris
D) George
Answer:
A) Wilhelm
Explanation:
Wilhelm performs the role of the agent as he is the one who martin contacts to find a potential buyer so Wilhelm is martins agent in this case and Wilhelm is the one in contact with the seller Martin so he is the agent and is finding buyers by contacting real estate agents on Martins behalf.
A broker-dealer offers 4 summer passes to an amusement park to each of its agents who sell at least $10,000 of bonds during the month of June. This action is:_______
I allowed
II not allowed
III considered to be "soft dollar" compensation
IV not considered to be "soft dollar" compensation
Answer:
I (allowed) and IV (not considered soft dollar compensation)
Explanation:
Soft dollar compensation refers to payments made to brokerage firms or agents as commission revenue. They differ from hard dollar compensation because hard dollars are payments that were agreed upon before an investor started working with the broker, while soft dollars are based upon variable commissions.
THe nurse manager working at a rehabilitation center for older adults notices an increase in the incidence of client falls. The nurse manager reprimands the nurses and staff responsible for the falls and places them on probation. Which statement best describes the nurse managers leadership style?
a. autocratic leadership
b. shared leadership
c. good clinical leadership skills
d. effective interprofessional leadership
Answer: A. Autocratic leadership
Explanation: Autocratic leadership is a type of leadership whereby the leader takes sole responsibility of decision making without involving others.
Characteristics of autocratic leadership
1. The leader is in complete control
2. There is no room for employee initiative.
3. Followers are not involved in problem solving or decision making.
4. Subordinates are reprimanded if perfection is not attained.
The nurse manager's actions of reprimanding and placing staff on probation for client falls exemplify an autocratic leadership style, characterized by centralized decision-making without team input.
Explanation:The nurse manager at a rehabilitation center for older adults who reprimands nurses and staff for an increase in client falls, placing them on probation, is displaying an autocratic leadership style. This leadership style involves centralizing all decision-making powers in the leader, who dictates policies and procedures and expects compliance without input from team members. In contrast, other leadership styles, such as democratic or transformational, would involve the team in problem-solving and decision-making to address the issue of increased falls.
Midtown, Inc. had the following transactions in 2018, its first year of operations:• Issued 31,000 shares of common stock. Stock has par value of $1.00 per shareand was issued at $20.00 per share.• Earned net income of $70,000.• Paid no dividends.At the end of 2018, what is total stockholders' equity?Select one:A. $690,000B. $70,000C. $31,000D. $620,000
Answer:
$
Par value of existing com m on stock (31,000 x $1) 31,000
Share premium (31,000 x $19) 589,000
Net income 70,000
Total stockholders' equity 690,000
The correct answer is A
Explanation:
The total stockholders' equity is the sum of par value of common stock, share premium and net income. Share premium is the excess of issue price over par value ($20 - $1) = $19.
The total stockholders' equity is the sum of par value of common stock, share premium and net income. Total stockholders' equity is $690,000. Thus, the correct answer is option A.
What is stockholders' equity?Stockholders' equity refers to the assets that remain in a company after all liabilities have been paid. Total liabilities are subtracted from total assets to arrive at this figure. It can also be calculated by subtracting treasury stock from the sum of share capital and retained earnings.
The total stockholders' equity is calculated as:-
Par value of existing common stock (31,000 x $1) $31,000
Share premium (31,000 x $19) $589,000
Net income $70,000
Total stockholders' equity $690,000
Share premium is the excess of issue price over par value ($20 - $1) = $19.
Therefore, the correct answer is option A.
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Municipal bonds that are issued to pay for essential public projects are exempt from federal taxation.
True or False?
Answer:
True
Explanation:
A municipal bond is also known as Muni. It is a debt security used for funding capital expenditure for a county. These bonds are free from federal taxes but can be taxed by local or state bodies under various circumstances. These bonds are popular among people from higher income tax brackets. These bonds are issued when people loan money to municipal boards in exchange of interest payment for a specific period.
If output is above its natural rate, then according to sticky-wage theory
a. workers and firms will strike bargains for higher wages. This increase in wages shifts the short-run aggregate supply curve right.
b. workers and firms will strike bargains for higher wages. This increase in wages shifts the short-run aggregate supply curve left.
c. workers and firms will strike bargains for lower wages. This decrease in wages shifts the short-run aggregate supply curve right.
d. workers and firms will strike bargains for lower wages. This decrease in wages shifts the short-run aggregate supply cur
If output exceeds its natural rate, employees and companies will bargain for lower compensation, according to sticky-wage theory. This wage decline causes the short-run aggregate supply curve to move to the left. Option D is correct.
What is the sticky-wage theory?According to sticky wage theory, employee compensation is resistant to drop even under bad economic situations. Because workers would oppose a wage cut, a company will seek to cut expenses elsewhere, including through layoffs, if profitability decreases.
According to sticky-wage theory, if output exceeds its natural rate, employees and firms would bargain for reduced remuneration. The short-run aggregate supply curve shifts to the left as wages fall.
Therefore, option D is correct.
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Lindsay has a low starting interest rate of 2%, but then slowly, over time, it journeys to a high interest rate. This is known as interest rate "________" and is very dangerous.
A. leap
B. creep
C. catapult
D. drop
Answer:
B. creep
Explanation:
This is the gradual increase in the rates of interest on various credit products and assets. It is gradual and thus may seem negligible, to the eye of an unkeen borrower. However, its downside is that it eventually makes the cost of capital very costly, making borrowing expensive and subsequently discouraging borrowing which is an essential aspect of economic growth. If it continues unabated, economic growth in an economy is slumped and to a certain level halted.