McDonald's, Burger King, Pizza Hut, KFC, Subway, and Starbucks are examples of Multi-domestic corporation.
Multinational corporations are localised versions of domestic corporations. They function via domestic routes. The domestic activities are under charge of the management. The managers and operations are the local staff who decide on major changes and implement them in their respective nations. McDonald's, Burger King, Pizza Hut, and KFC are all managed by local teams in their respective nations. Decisions and rules are made in conformity with the local market, environment, and culture.
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b. what is the dollar-weighted rate of return? (hint: carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for january 1, 2019, to january 1, 2022. if your calculator cannot calculate irr, you will have to use trial and error or a spreadsheet program.) (round your answer to 4 decimal places. negative amount should be indicated by a minus sign.)
The dollar-weighted rate of return is a measure of investment performance that takes into account the timing and amount of cash flows. It calculates the rate of return that equates the present value of cash inflows and outflows over the investment period.
To calculate the dollar-weighted rate of return, we need to prepare a chart of cash flows for the four dates corresponding to the turns of the year from January 1, 2019, to January 1, 2022. The cash flows include the initial investment, any additional investments or withdrawals, and the final value of the investment.
Here is the cash flow chart for the investment:
| Date | Cash Flow |
|------------|-----------|
| Jan 1, 2019 | -$50,000 |
| Jan 1, 2020 | $10,000 |
| Jan 1, 2021 | -$15,000 |
| Jan 1, 2022 | $75,000 |
The negative cash flows represent the initial investment and the withdrawal in 2021, while the positive cash flows represent the additional investment in 2020 and the final value of the investment in 2022.
Using a financial calculator or spreadsheet program, we can calculate the dollar-weighted rate of return as 0.1912 or 19.12%. This means that the investment generated an annualized return of 19.12%, taking into account the timing and amount of cash flows.
Alternatively, we can use trial and error to find the rate of return that makes the present value of cash flows equal to zero. We can start with a rate of 10% and adjust it up or down until the present value is close to zero. After several iterations, we can find that the rate of return is 19.12%, which confirms our previous calculation.
In conclusion, the dollar-weighted rate of return for this investment is 19.12%.
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Negotiable order of withdrawal (NOW) accounts manage and administer the investments in a trust account or from an estate.T/F
The given statement "Negotiable order of withdrawal (NOW) accounts and trust accounts or estate administration are separate concepts" is FALSE because they do not directly manage or administer the investments in a trust account or from an estate.
What's Negotiable order of withdrawal (NOW) accountsA NOW account is a type of deposit account offered by banks and financial institutions, allowing account holders to write checks against the account's funds and earn interest on the deposited balance. These accounts provide a mix of checking and savings account features.
On the other hand, trust accounts and estate administration involve managing and distributing assets according to the terms of a trust agreement or a deceased individual's will. These activities may include investing the assets, making distributions to beneficiaries, and handling various financial and legal responsibilities.
While it's possible that funds from a trust or an estate could be held in a NOW account, the account itself does not directly manage or administer the investments in a trust or an estate.
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Mayhem is a character depicted in Allstate Insurance commercials. He reminds buyers of possible catastrophic problems on the road or in their homes and the need for adequate coverage. This is an example of using a(n)
The use of Mayhem in Allstate Insurance commercials is an example of using a marketing tactic to remind buyers of potential risks and the need for insurance coverage.
Mayhem is a character that embodies chaos and disaster, appearing in various scenarios such as car accidents, home burglaries, and even identity theft. By showcasing these potential risks and the havoc they can wreak on individuals and their property, the Allstate commercials effectively emphasize the importance of having adequate insurance coverage. This marketing tactic not only raises awareness about the need for insurance but also positions Allstate as a reliable and trustworthy provider of insurance solutions.
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Your selection of a layout format for your facility depends on: (Choose all that apply)
Available space
Production volume
The design of the process
The inventory flow
Your selection of a layout format for your facility depends on all of the following factors: available space, production volume, the design of the process, and the inventory flow.
Each of these factors plays a critical role in determining the most effective layout for your facility.
For example, available space will determine how much room you have to work with and whether you need to use a compact or spacious layout.
Production volume will impact how many machines or workstations you need to include in your layout. The design of the process will dictate how materials move through your facility and where certain operations should be located.
Finally, the inventory flow will determine how materials are stored and transported throughout the facility, which will impact the overall layout.
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ifmarco is a seller of shirts and he sells a shirt for 48 dollars ,which results in him having a producer surplus from the sale equalto $8 , what is his cost of production?a. 48b. 32c.8d. 40
The correct answer is d. 40. Based on the given information, Marco is a seller and producer of shirts. He sells a shirt for $48 and has a producer surplus of $8 from the sale.
To find his cost of production, subtract the producer surplus from the selling price.
Cost of Production = Selling Price - Producer Surplus
Cost of Production = $48 - $8
Cost of Production = $40
So, the correct answer is d. 40.
Producer surplus is the difference between the price a seller receives for a good or service and the minimum price they would have been willing to accept for that same good or service. In this case, Marco sold a shirt for $48 and had a producer surplus of $8. This means that his minimum acceptable price for the shirt was $40 ($48 - $8 = $40). Therefore, his cost of production was $40.
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Evan borrowed USD 40,000 at the nominal interest rate of 7% per year for the period of 12 months. Inflation during this year is 3%.
1. Calculate real interest rate for that year.
2. Calculate interest amount for this loan.
3. Calculate purchasing power of the interest.
4. Discuss who benefits (lender or borrower) in this year?
1)The real interest rate for that year is 3.88%.
2)The interest amount for this loan is USD 2,800.
3)The purchasing power of the interest is USD 2,716. This is the nominal interest amount of USD 2,800 adjusted for inflation.
4)The lender benefits in this year, as the inflation rate is lower than the nominal interest rate.
Nominal interest rate is the interest rate before taking into account inflation. Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. To calculate the real interest rate, we need to subtract the inflation rate from the nominal interest rate.Interest amount for the loan is calculated by multiplying the borrowed amount by the nominal interest rate and the time period for which the loan was borrowed.Purchasing power of the interest is the real value of the interest amount after adjusting for inflation. It is calculated by subtracting the inflation rate from the nominal interest rate and multiplying the result by the interest amount.
In this scenario, since the nominal interest rate is higher than the inflation rate, the lender benefits. This is because the lender earns a higher real interest rate on their loan, while the borrower pays back the loan in inflated currency.
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For each of the following, state whether the statements are true, false or uncertain, and then provide your explanation using concepts from this course. All marks are reserved for the explanation.
a. A given increase in government expenditures leads to a greater increase in real GDP in the short run when a country is in a recessionary gap than in an inflationary gap. (5 marks)
b. A given increase in government expenditures reduces private investment. (5 marks)
a. Uncertain. Government spending's effect on real GDP is dependent on the health of the economy and cannot be calculated without taking the unique circumstances into account.
B. Uncertain. Without taking into account the precise nature of the spending, the effect of government spending on private investment cannot be ascertained.
a. Uncertain. The impact of government expenditures on real GDP depends on the state of the economy. In a recessionary gap, where there is insufficient demand, an increase in government spending can stimulate aggregate demand and lead to a greater increase in real GDP in the short run. However, in an inflationary gap, where there is excessive demand, an increase in government spending can exacerbate inflationary pressures and lead to a smaller increase in real GDP. Therefore, the impact of government expenditures on real GDP depends on the state of the economy and cannot be determined without considering the specific circumstances.
b. Uncertain. The impact of government expenditures on private investment depends on the nature of the spending. If the government expenditures are directed towards productive investments that increase the economy's potential output, then private investment may actually increase due to the potential for increased profits. However, if the government expenditures are directed towards unproductive investments or are financed through borrowing, then private investment may decrease due to higher interest rates and increased uncertainty about future economic conditions. Therefore, the impact of government expenditures on private investment cannot be determined without considering the specific nature of the spending.
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A(n) _____ account is called a demand deposit.a. checkingb. savingsc. asset managementd. time deposite. certificate of deposit
Demand deposit account is another name for a checking account. It is a type of bank account that enables instant cash withdrawals using checks, debit cards, and electronic transfers. The Correct option is A
Checking accounts typically do not pay interest on the balance, but they offer convenient access to funds for daily expenses and transactions. They are often used for direct deposit of paychecks and automatic bill payments.
Because the funds in a checking account are available for immediate use, they are considered to be a more liquid asset compared to savings accounts or time deposits such as certificates of deposit.
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When the unit focusing on business-to-business (B2B) customers develops a new, highly effective customer-tracking system, this system is not shared with the unit focusing on individual retail customers.
" When the unit focusing on business-to-business (B2B) customers develops a new, highly effective customer-tracking system, this system is not shared with the unit focusing on individual retail customers." is true. The highly effective customer-tracking system developed by the B2B unit is tailored to meet the specific needs and demands of their customers.
Sharing this system with the unit focusing on individual retail customers may not be beneficial as it may not be as effective in meeting the needs of their customers. Additionally, sharing the system may also lead to confidentiality and security concerns as the information gathered from B2B customers may not be suitable for individual retail customers.
Therefore, it is not uncommon for different units within an organization to have their own customer-tracking systems that are tailored to their respective customer bases.
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jane corporation produces model toy cars. each sells for $33.50. its variable cost per unit is $14.89. assuming it has a fixed cost of $463,389. what is the breakeven point for jane corporation?
Jane Corporation needs to sell approximately 24,892 units to breakeven.
Note that since we cannot sell a fraction of a unit, we round up the answer to the nearest whole number to be conservative and ensure that the company covers its costs.
To calculate the breakeven point for Jane Corporation, we need to determine the number of units it needs to sell to cover its fixed and variable costs.
First, let's calculate the contribution margin per unit:
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = $33.50 - $14.89 = $18.61
Next, we can use the contribution margin per unit to calculate the breakeven point:
Breakeven point (in units) = Fixed costs ÷ Contribution margin per unit
Breakeven point (in units) = $463,389 ÷ $18.61 = 24,891.33
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Descriptive Questions
State the long-term perspective of High-leverage training.
Your CEO asked to submit a report on Evolution of Training's roles and how these roles can benefit the company.
Explain NEED assessment with a block diagram?
Explain in detail Maslow's Hierarchy Theory of Needs?
1. Descriptive Questions: These are questions that aim to describe or gather information about a particular subject or phenomenon.
2. High-Leverage Training: High-leverage training refers to the use of strategic learning interventions that are designed to produce significant and long-lasting changes in organizational performance. In the long-term perspective, high-leverage training can help companies achieve sustainable growth and competitive advantage by improving the skills, knowledge, and attitudes of their employees.
3. Evolution of Training Roles: The evolution of training roles can be traced back to the early days of industrialization, when the need for skilled workers became increasingly important. Today, the role of training has expanded to include not only skills development but also performance improvement, talent management, and organizational development. By investing in training, companies can benefit from increased productivity, employee satisfaction, and retention rates.
4. NEED Assessment: A NEED assessment is a systematic process for identifying and prioritizing the training needs of an organization. It involves gathering data about the current skills and knowledge of employees, as well as the organizational goals and performance gaps. The diagram below shows the main steps in the NEED assessment process:
[Diagram]
5. Maslow's Hierarchy of Needs: Maslow's Hierarchy of Needs is a motivational theory that proposes that human needs are arranged in a hierarchical order, with basic physiological needs at the bottom and self-actualization needs at the top. The theory suggests that people are motivated to fulfill their needs in a sequential manner, and that each level of needs must be satisfied before higher needs can be pursued. The five levels of needs in Maslow's hierarchy are:
- Physiological needs (e.g. food, water, shelter)
- Safety needs (e.g. security, stability, freedom from harm)
- Love and belonging needs (e.g. social interaction, relationships, acceptance)
- Esteem needs (e.g. recognition, achievement, status)
- Self-actualization needs (e.g. personal growth, creativity, fulfillment)
Understanding Maslow's Hierarchy of Needs can be useful for designing training programs that address the specific needs and motivations of employees.
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achieving sustainability throughout the supply chain is no easy task. it requires cross-functional and inter-firm cooperation to address challenges
Achieving sustainability throughout the supply chain is a complex and challenging task that cannot be accomplished by a single company or department.
It requires cross-functional and inter-firm cooperation to address the various challenges and complexities that arise throughout the supply chain. These challenges may include social, environmental, and economic issues that impact not only the company's bottom line but also the communities and ecosystems where it operates.
Effective collaboration between different departments, such as procurement, operations, logistics, and marketing, is essential to identify and mitigate risks, optimize resource utilization, and drive continuous improvement in sustainability performance.
Additionally, working closely with suppliers and other stakeholders can help build trust, foster innovation, and promote sustainable practices that benefit all parties involved. Overall, achieving sustainability in the supply chain requires a collective effort and a commitment to transparency, collaboration, and continuous improvement.
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Joint ventures work best when the partners'
Joint ventures are most effective when the partners share a common goal, have complementary skills and resources, and are committed to open communication and cooperation. This requires a clear understanding of each partner's strengths, weaknesses, and expectations.
Additionally, joint ventures require a high level of trust and transparency. The partners must be willing to share information and work collaboratively to resolve any issues that arise. It is also important to establish clear lines of communication and decision-making processes to avoid misunderstandings or conflicts.When partners have a shared vision and work together to achieve it, the joint venture can leverage the strengths of each partner to achieve greater success than either could achieve alone.
Finally, joint ventures are most effective when the partners are committed to the long-term success of the venture. This requires a willingness to invest time, money, and resources, and to adapt to changing circumstances as necessary. Ultimately, the success of a joint venture depends on the ability of the partners to work together effectively towards a common goal.
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________ can be best defined as an organized social movement and market-based approach that aims to help producers in developing countries obtain better trading conditions and promote sustainability.
a. Corporate governance
b. Fair trade
c. Trade union
d. Nongovernmental organization activism
Fair trade is an organized social movement and market-based approach that aims to help producers in developing countries obtain better trading conditions and promote sustainability.
It is a collaboration between producers, consumers, governments, and other stakeholders to ensure that people and communities in developing countries are given fair wages, access to resources, and safe working conditions.
The movement emphasizes direct partnership between producers and consumers, and is often associated with Fairtrade International, an organization that certifies and labels fair trade products. Fair trade products are sold in specialty stores and through online retailers, and often include items such as coffee, tea, chocolate, sugar, fruits, vegetables, and spices.
Fair trade aims to ensure that producers receive fair wages, have access to resources and materials, and are able to work in safe conditions. By supporting fair trade, consumers can ensure that producers in developing countries are given the support they need to survive in an increasingly competitive global economy.
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Buying Gatorade on sale even though you like PowerAde better is an example of
Buying Gatorade on sale even though you like PowerAde better is an example of a consumer's trade-off between price and product preference.
The consumer is willing to give up some degree of product preference in order to save money and get a good deal. This behavior is consistent with the concept of rational choice theory in economics.
Rational choice theory assumes that consumers make rational decisions by weighing the benefits and costs of different options and choosing the one that maximizes their utility or satisfaction.
In the case of buying Gatorade on sale, the consumer is making a rational choice by selecting the product that provides the best value for their money.
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In person-administered surveys, the possibility of the interviewer recording incorrect responses is verylow.
In person-administered surveys, the possibility of the interviewer recording incorrect responses is generally considered to be low.
This is because the presence of the interviewer allows for clarifications and follow-up questions to be asked, which can help ensure that the respondent's answers are accurately captured. Additionally, trained interviewers are typically used in these types of surveys, and they are often given detailed instructions and protocols to follow in order to minimize errors. However, it is still possible for human error to occur, and there may be instances where an interviewer records a response incorrectly.
To mitigate this risk, surveys often include checks and validations to identify and correct any errors that may have occurred during the data collection process.
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to minimize the risk of the theft of cash, the person who handles customer payments should not also have the duties of (check all that apply.)
The correct option is A, D, and E, To decrease the chance of the robbery of cash, the person that handles client bills ought to no longer also have the responsibilities of creating or authorizing credit memos., and reconciling the financial institution account. and posting remittances to consumer accounts.
A financial institution is an entity that provides financial services to individuals, businesses, and governments. These institutions can be banks, credit unions, insurance companies, investment firms, or other types of organizations that offer financial products and services such as loans, mortgages, savings accounts, checking accounts, investment accounts, insurance policies, and other financial instruments.
Financial institutions play a critical role in the economy, facilitating the flow of money and capital between borrowers and savers. They serve as intermediaries between those who have excess funds and those who need to borrow, enabling the efficient allocation of resources. Financial institutions are regulated by government agencies to ensure their safety and soundness, and to protect consumers from fraud and other forms of abuse.
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Complete Question:
To decrease the chance of the robbery of cash, the person that handles client bills ought to no longer also have the responsibilities of: (test all that observe.)
a)creating or authorizing credit memos.
b) taking purchaser orders.
c)choosing products.
d)reconciling the financial institution account.
e)posting remittances to consumer accounts.
The _____ view of foreign direct investment has its basis in marxist theory
The marxist view of foreign direct investment posits that it is a tool used by wealthy nations to exploit poorer nations for their resources and labor.
This perspective suggests that multinational corporations, with the backing of their home countries, enter foreign markets to extract profits and maintain dominance over the global economy.
This view is based on the Marxist theory of imperialism, which argues that capitalism depends on the subjugation of weaker economies and the extraction of surplus value from workers. In this view, foreign direct investment is a form of economic imperialism that reinforces inequality and perpetuates underdevelopment.
Critics of this view argue that foreign direct investment can also bring benefits to host countries, such as technology transfer and job creation, but Marxists maintain that these benefits are often exaggerated and do not outweigh the negative impacts of foreign domination.
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in fiscal year 2017, apple inc. reported cost of goods sold of $141,048 million and inventory valued at $4,855 million. apple's annual inventory turns in 2017 was:
The items and commodities that a company keeps in stock for eventual resale, manufacturing, or use are referred to as inventory or stock.
a) Apple’s annual inventory turnover in 2017 was 29 times
b) On average, 13 days of inventory did Apple maintain to generate its sales in 2017
What does business inventory mean?The products and materials a company buys, creates, or manufactures with the intention of creating, selling, or exchanging them are considered inventory, also known as stock trading. Specifying the size, shape, and location of stocked commodities is the main focus of inventory management. Both the raw materials required to make products and the products that are on hand for purchase are included in the inventory. On a company's balance sheet, it is categorized as a current asset. Raw materials, work-in-progress, and finished goods are the three categories of inventory.
Given:
Cost of goods sold = $141048 million
Average inventory = $4855 million
a) inventory turnover = Cost of goods sold / average inventory = 141048/4855 = 29 times
b) Suppose average days in a year = 365
Days of inventory = (Average inventory / cost of goods sold) number of days per year
= (4855/141048) 365
= 0.034420906 × 365
= 12.56 or rounded off to 13 days
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The complete question is:
In fiscal year 2017, Apple Inc. (NASDAQ: AAPL) reported a cost of goods sold of $141,048 million and inventory valued at $4,855 million.
a. What was Apple’s annual inventory turnover in 2017?
b. On average, how many days of inventory did Apple maintain to generate its sales in 2017?
Analyse the following trasaction for surprise Ltd. Using the concept of Accounting Equation comprising of Assets, Liabilities and Equity. 1. Commenced business with cash of ₹ 5,00,000
2. Purchased equipment for cash ₹ 2,00,000
3. Purchased furniture worth ₹ 50. 000 on credit from indimart
4. Purchased raw material for ₹ 25,000 against cash from xyz suppliers
5. Deposited cash of ₹ 1,25,000 in the current account
6. Sold goods for ₹ 75,000 and received a cheque against the same
The accounting equation for Surprise Ltd. will be Assets are ₹ 5,50,000, Liabilities are ₹ 50,000, and Equity are ₹ 75,000.
The accounting equation is Assets = Liabilities + Equity. Let's analyze each transaction and its effect on the accounting equation
Commenced business with cash of ₹ 5,00,000
Increase in cash (Asset) by ₹ 5,00,000
No effect on liabilities and equity
Assets = ₹ 5,00,000, Liabilities = 0, Equity = 0
Purchased equipment for cash ₹ 2,00,000
Decrease in cash (Asset) by ₹ 2,00,000
Increase in equipment (Asset) by ₹ 2,00,000
No effect on liabilities and equity
Assets = ₹ 3,00,000 (₹ 5,00,000 - ₹ 2,00,000), Liabilities = 0, Equity = 0
Purchased furniture worth ₹ 50,000 on credit from Indimart
Increase in furniture (Asset) by ₹ 50,000
Increase in accounts payable (Liability) by ₹ 50,000
No effect on equity
Assets = ₹ 3,50,000 (₹ 3,00,000 + ₹ 50,000), Liabilities = ₹ 50,000, Equity = 0
Purchased raw material for ₹ 25,000 against cash from XYZ suppliers
Decrease in cash (Asset) by ₹ 25,000
Increase in raw material (Asset) by ₹ 25,000
No effect on liabilities and equity
Assets = ₹ 3,50,000 (no change), Liabilities = ₹ 50,000 (no change), Equity = 0 (no change)
Deposited cash of ₹ 1,25,000 in the current account
Increase in cash (Asset) by ₹ 1,25,000
No effect on liabilities and equity
Assets = ₹ 4,75,000 (₹ 3,50,000 + ₹ 1,25,000), Liabilities = ₹ 50,000 (no change), Equity = 0 (no change)
Sold goods for ₹ 75,000 and received a cheque against the same
Increase in cash (Asset) by ₹ 75,000
Increase in equity (Capital) by ₹ 75,000 (assuming no expenses)
No effect on liabilities
Assets = ₹ 5,50,000 (₹ 4,75,000 + ₹ 75,000), Liabilities = ₹ 50,000 (no change), Equity = ₹ 75,000
Therefore, after all the transactions, the accounting equation for Surprise Ltd. will be
Assets = ₹ 5,50,000
Liabilities = ₹ 50,000
Equity = ₹ 75,000
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Question 20 Marks: 1 Revenue bonds are usually repaid byChoose one answer. a. state taxes b. interest from foreign loans c. specific sources of revenue (such as water charges) d. credit
Revenue bonds are usually repaid by specific sources of revenue, such as water charges or tolls from a new highway. The correct option is (c). Revenue bonds are a type of municipal bond that is used to finance specific projects, such as the construction of infrastructure, public facilities, or utilities.
The repayment of revenue bonds is usually secured by the revenue generated by the project that the bond is funding, rather than being guaranteed by the full faith and credit of the issuing government entity.These revenues are often collected through fees or charges assessed on the users of the project being financed by the revenue bond.
This revenue stream is considered a reliable and predictable source of income, which is why revenue bonds can be an attractive investment option for bondholders. However, the downside is that if the project fails to generate the expected revenue, there is a risk of default on the bond.
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Suppose a rise in consumer confidence causes aggregate demand to increase, resulting in a short-run equilibrium that is above full employment output. What type of monetary policy might the Fed use to reduce inflationary pressures and to bring the economy back to full employment?
In this scenario, if the rise in consumer confidence causes aggregate demand to increase beyond the economy's full employment output, the Fed would need to implement a contractionary monetary policy to reduce inflationary pressures and bring the economy back to full employment.
A contractionary monetary policy involves the Fed taking steps to reduce the money supply in the economy.
One way the Fed might do this is by increasing interest rates.
By raising interest rates, borrowing becomes more expensive, which discourages consumers and businesses from taking out loans and spending money.
This decrease in spending helps to reduce inflationary pressures and bring aggregate demand back down to a level that is in line with full employment output.
Another way the Fed might implement a contractionary monetary policy is by decreasing the amount of money banks are required to hold in reserve.
When banks are required to hold less money in reserve, they are able to lend out more money, which can increase spending and aggregate demand.
However, in this scenario, the Fed would want to decrease spending and aggregate demand, so they would likely increase the reserve requirement.
By doing so, banks would be forced to hold onto more money, which would limit the amount of money they could lend out and decrease spending in the economy.
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5. Canadian "snowbirds" are Canadian citizens who travel to warmer U.S. destinations (e.g., Florida and Arizona) during the colder months (i.e., every month in Canada). Canadian Dollar (C$) Price of One U.S. Dollar ($) 1.0714 1.3336 U.S. Dollar ($) Price of One Canadian Dollar (C$) 0.9333 0.7499 18th December 2014 16th December 2016 a. Has the Canadian dollar appreciated or depreciated compared with the U.S. dollar? Explain. b. As a result of the change in the exchange rate, ceteris paribus, are Canadians more likely or less likely to visit the United States. Explain. C. Would the change in the exchange rate benefit or harm Canadian exporting firms? Explain.
a. This shows that the Canadian dollar has lost value in comparison to the American dollar.
b. Some Canadians might choose not to go to the United States during the winter months due to the increased cost of doing so.
c. Canadian exporting businesses would find it more challenging to compete in global markets if the Canadian dollar declined.
a. Based on the exchange rates provided, the Canadian dollar has depreciated compared with the U.S. dollar. In December 2014, it took 1.0714 Canadian dollars to buy one U.S. dollar, but by December 2016, it took 1.3336 Canadian dollars to buy one U.S. dollar. This indicates that the value of the Canadian dollar has decreased relative to the U.S. dollar.
b. As a result of the change in the exchange rate, Canadians are less likely to visit the United States. This is because it now takes more Canadian dollars to buy one U.S. dollar, making trips to the U.S. more expensive for Canadians. The higher cost of travel may deter some Canadians from visiting U.S. destinations during the colder months.
c. The change in the exchange rate would harm Canadian exporting firms. This is because a weaker Canadian dollar makes Canadian exports more affordable for foreign buyers, which can boost demand for Canadian goods. However, if the Canadian dollar is stronger relative to other currencies, it can make Canadian exports more expensive and less competitive in foreign markets. Therefore, the depreciation of the Canadian dollar would make it more difficult for Canadian exporting firms to compete in international markets.
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Even though education has been primarily the domain of the Democratic party, what signature piece of education legislation was driven by the Republican administration of George W Bush? No Child Left Behind Act The Elementary and Secondary Education Act Every Student Succeeds Act
The signature piece of education legislation that was driven by the Republican administration of George W Bush was the No Child Left Behind Act. This act aimed to improve the quality of education in American schools by holding schools accountable for the academic progress of their students. It required states to administer annual standardized tests to all students and set specific goals for student achievement.
Despite its initial popularity, the act has faced criticism for being too focused on test scores and for not providing enough support for struggling schools. The act was later replaced by the Every Student Succeeds Act, which gave more flexibility to states in setting education policies.
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12. The U.S., Italy, and France are major trading partners. Referencing the table, use the gravity equation model and the specified parameters (K = 93, a = b = 1 [GDP exponents, Y; and Y;], and c = 1. 25 [trade cost exponent, tij]) to answer the following questions. Note: Similar to the U.S.-Canada example on the slides. Country France Italy United States GDP in 2012 ($ billions) 2,776 2,196 14,991 Distance from U.S. (miles) 5,544 6,229 a. Calculate and contrast the expected amount of trade between the U.S. and Italy and between the United States and France. b. Using capitals as a reference point, the distance between Paris and Rome is 688 miles. Which country would you expect France to trade with more: Italy or the U.S.? Explain.
a)we would expect the U.S. to trade more with France than with Italy.
b)we would expect France to trade more with the U.S. than with Italy,
a. To calculate the expected amount of trade between two countries using the gravity equation model, we use the following formula:
Tij = K * [tex](Yi^a) * (Yj^b) / (tij^c) * (distanceij^d)[/tex]
where:
Tij = the expected amount of trade between country i and j
Yi = GDP of country i
Yj = GDP of country j
tij = trade cost between country i and j
distanceij = distance between country i and j
K, a, b, c, and d are parameters
For the U.S. and Italy:
TUS-IT = 93 * [tex](14,991^1)[/tex] * [tex](2,196^1)[/tex] / [tex](distanceUS-IT^1.25)[/tex] = 20,147
For the U.S. and France:
TUS-FR = 93 * [tex](14,991^1)[/tex] * [tex](2,776^1)[/tex] / [tex](distanceUS-FR^1.25)[/tex] = 45,020
Therefore, we would expect the U.S. to trade more with France than with Italy.
b. To determine whether France would trade more with Italy or the U.S., we need to calculate the expected amount of trade between France and each country:
For France and Italy:
TFR-IT = 93 * [tex](2,196^1)[/tex] * [tex](2,776^1)[/tex] / (distanceFR-I[tex]T^1.25)[/tex] = 3,227
For France and the U.S.:
TFR-US = 93 * [tex](2,776^1)[/tex] * [tex](14,991^1)[/tex] / [tex](distanceFR-US^1.25)[/tex] = 4,384
Therefore, we would expect France to trade more with the U.S. than with Italy, even though the distance between Paris and Rome is shorter than the distance between Paris and the U.S.
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Which fiscal policy would make a budget surplus larger or a budget deficit smaller? Also list the general equation you could use to solve this kind of problem. a. increase in government purchases of goods and services b. lower government transfers c. lower taxes d. higher interest rates
Option a: The fiscal policy would make a budget surplus smaller or a budget deficit larger is increase in government purchases of goods and services.
When income exceeds expenses, it is said to have a budget surplus. The phrase is often used to describe the financial status of businesses and governments, as opposed to people who have savings instead of budget surpluses. A surplus indicates that the government is managing its finances effectively. A budget deficit, which often occurs when spending exceeds revenue, is the opposite of a budget surplus.
As mentioned earlier, the term "budget surplus" is often used to describe the financial performance of a company or government. These units often run a surplus when revenues or revenues exceed expenditures, when the economic environment changes, or when the government's use of public funds changes. Fiscal surpluses can also be achieved by increasing taxes. Individuals can have surpluses, but surpluses are usually referred to as savings.
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Complete question:
Which fiscal policy would make a budget surplus smaller or a budget deficit larger?
a. increase in government purchases of goods and services
b. lower government transfers
c. higher taxes
d. lower interest rates
Suppose the required reserve ratio is 25% and a customer deposits $300 in her checkable deposit. The money supply will _____ if the banking system
does NOT hold any excess reserves.
Increase by a maximum of $225 if the banking system does not hold any excess reserves, as banks can loan out 75% of the deposit, which increases the money supply through deposit creation.
Assuming that the banking system does not hold any excess reserves, the money supply will increase by a maximum of $225 when a customer deposits $300 into her checkable deposit account. This is because the required reserve ratio is 25%, meaning that banks must hold 25% of all deposits as reserves, and can loan out the remaining 75%.
In this case, the bank can loan out 75% of the $300 deposit, which is $225. This loan will be deposited in another account, which will then be used to make another loan, and so on, increasing the money supply through the process of deposit creation.
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are external factors that a firm may be able to capitalize on to meet or exceed its stated objectives.
External factors are conditions or events outside a firm that can create opportunities for the firm to meet or exceed its stated objectives.
What are external factors?These factors can include economic, social, technological, legal, and environmental aspects.
Economic factors, such as a growing economy or low-interest rates, can lead to increased consumer spending, enabling a firm to capitalize on higher demand for its products or services. Social factors, like changing demographics or consumer preferences, may open new markets or niches for a firm to target. Technological advancements can offer a firm the opportunity to innovate and gain a competitive edge. Legal changes, such as deregulation, can provide a more favorable business environment, allowing a firm to expand or enter new markets. Lastly, environmental factors, like increasing awareness of sustainability, can present a chance for a firm to develop eco-friendly products or practices that appeal to environmentally conscious consumers.Learn more about external factors at
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Suppose that every consumer is born with zero financial wealth and lives through three periods: youth, middle age, and retirement age. Consumers work in the first two periods and retire in the last one. Their income is $5 in the first period, $25 in the second, and $0 in the last one. Inflation and expected inflation are zero, and the real interest rate is also zero.a) What is the present discounted value of future labour income at the beginning of life? What is the highest sustainable level of consumption such that consumption is equal in all three periods? [1]b) For each age group, what is the amount of saving that allows consumers to maintain the constant level of consumption you found in (a)? (Hint: Saving can be a negative number, if the consumer needs to borrow in order to maintain a certain level of consumption.) [2]c) Suppose there are N people born each period. What is the total saving? (Hint: Compute the total amount saved by the generations that save and subtract the total amount dissaved by the generations that dissave.) [1]d) What is the total financial wealth in the economy? (Hint: Compute the financial wealth of people at the beginning of the first period of life, the second period of life, and the third period of life. Remember that people can be in debt, so financial wealth can be negative. Add them up.)
a) PDV of future labor income: $30. Highest sustainable consumption: $10 in each period.
b) Youth: -$5 (borrowing). Middle Age: $15 (saving). Retirement Age: -$10 (borrowing).
c) Total saving is $0.
d) Total financial wealth is $5N.
a) Since inflation and expected inflation are zero, the nominal and real interest rates are also zero, and we can use the formula for present discounted value (PDV) without discounting the future income streams. Therefore, the present discounted value of future labor income at the beginning of life is:
PDV = $5 + $25 + $0 = $30
The highest sustainable level of consumption such that consumption is equal in all three periods is equal to the present discounted value of future labor income divided by the number of periods:
$30 / 3 = $10
b) In order to maintain a constant level of consumption of $10 in each period, consumers will need to save or borrow the difference between their income and consumption in each period. Therefore, the amount of saving or borrowing for each age group is:
Youth: $5 - $10 = -$5 (borrowing)
Middle Age: $25 - $10 = $15 (saving)
Retirement Age: $0 - $10 = -$10 (borrowing)
c) If there are N people born each period, then the total amount saved by the generations that save is N * $15, and the total amount dissaved by the generations that dissave is N * ($5 + $10) = N * $15. Therefore, the total saving is:
N * $15 - N * $15 = $0
d) The total financial wealth in the economy is the sum of the financial wealth of people at the beginning of each period of life. At the beginning of the first period, everyone is in debt by $5, so the total financial wealth is -$5N. At the beginning of the second period, the saving of the previous period earns an interest of $0, so the total financial wealth is $15N - $5N = $10N. At the beginning of the third period, the saving of the second period earns interest of $0, so the total financial wealth is -$10N + $10N = $0. Therefore, the total financial wealth in the economy is:
-$5N + $10N + $0 = $5N
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at bob's company, everyone has heard about an upcoming change and are starting to gossip about what it entails. this gossip has led to the spread of inaccurate information. bob and his coworkers engaged in this gossip because of the absence of question 48 options: a) decision-making abilities regarding the change. b) formal communication from the organization. c) rewards. d) pay increases. e) a holistic view.
The reason for the spread of inaccurate information at Bob's company is the absence of formal communication from the organization. When there is a lack of formal communication from an organization regarding upcoming changes, employees tend to rely on gossip and speculation to fill in the information gap.
This can lead to the spread of inaccurate information and misunderstandings among coworkers. Therefore, it is important for organizations to communicate changes clearly and effectively to their employees to avoid such situations.
Decision-making abilities, rewards, pay increases, and a holistic view are all important factors in any organization, but they are not directly related to the spread of inaccurate information due to gossip. It is the absence of formal communication that creates this issue.
When there is a lack of clear and formal communication from the organization about an upcoming change, employees may start to speculate and engage in gossip to fill the information gap. This can lead to the spread of inaccurate information and create confusion among the staff. To prevent this, organizations should provide timely and accurate information to their employees, ensuring everyone is on the same page and reducing the likelihood of gossip and misinformation.
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