What type of policy lowers interest rates to allow individuals access to more money for large purchases

Answers

Answer 1

Complete Question:

What type of policy lowers interest rates to allow individuals access to more money for large purchases?

Group of answer choices

A. Fiscal.

B. Stimulus.

C. Discount.

D. Monetary.

Answer:

D. Monetary.

Explanation:

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.

Generally, money supply comprises of checks, cash, money market mutual funds (MMF) and credit (mortgage, bonds and loans).

Additionally, monetary policy lowers interest rates to allow individuals access to more money for large purchases.


Related Questions

Sometimes airlines raise ticket prices as the flight departure date approaches in the hope of increasing revenue. The airlines raise their prices on the assumption that:

Answers

Answer:

B) less price-elastic as departure time approaches.

Explanation:

Here are the options to this question :

A) steady in its price elasticity as departure time approaches.

B) less price-elastic as departure time approaches.

C) always unit elastic.

D) very sensitive to price changes as the time of departure approaches.

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

As the departure date arrives, there would be less available flights and less time for travellers to make alternative travelling arrangements. As a result, they would be willing to pay any price. At this point, travellers would have a less elastic demand. that is they are less sensitive to price.

Hache Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory 1,050
Materials Costs $ 8,700
Conversion Costs $ 8,500
Percent complete with respect to materials 50%
Percent complete with respect to conversion 30%
Units started into production during the month 6,600
Units transferred to the next department during the month 5,800
Materials costs added during the month $ 91,000
Conversion costs added during the month $ 126,300
Ending work in process inventory:
Units in ending work in process inventory 1,850
Percent complete with respect to materials 50%
Percent complete with respect to conversion 20%
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: (Do not round Cost per equivalent unit.)
a) $67,845
b) $38,507
c) $17,478
d) $21,797

Answers

Answer:

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: d) $21,797

Explanation:

Calculation of Equivalent Units of Production

Materials

Units transferred to the next department (5,800 × 100%) = 5,800

Units in ending Work In process (1,850 × 50%)                  =    925

Total Equivalent Units of Production for Materials             = 6,725

Conversion

Units transferred to the next department (5,800 × 100%)    = 5,800

Units in ending Work In process (1,850 × 20%)                     =    370

Total Equivalent Units of Production for Conversion Costs =  6,170

Calculation of Cost per Equivalent units of Production

Materials

Cost per equivalent unit = Total Material Cost ÷ Total Equivalent Units of Production for Materials

                                        = ($ 8,700 + $ 91,000) ÷ 6,725

                                        = $14.825

Cost per equivalent unit = Total Material Cost ÷ Total Equivalent Units of Production for Materials

                                        = ($ 8,500 + $ 126,300) ÷ 6,170

                                        = $21.848

Calculation of cost of ending work in process inventory

Materials ( 925 ×  $14.825)             =  $13,713.12

Conversion Cost ( 370 × $21.848)  =  $8,083.76

Total                                                 =  $21,796.88

Thus,

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: d) $21,797.

A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of​ $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of ​%. If the manufacturer currently makes tons of clothespins per​ year, which sell at per​ ton, what will be the increase in revenue next year from the new​ equipment?

Answers

Answer:

$337,500

Explanation:

the questions was missing some numbers. I looked for similar questions and found:

increase in sales = 25​%current annual production in tons = 75sales price per ton = $18,000

increase in total sales = 75 tons x 25% = 18.75 tons

increase in revenue = 18.75 tons x $18,000 = $337,500

Since the question only asks for the increase in revenue, we do not have to calculate anything else.

Sam has contracted with Dave to purchase Dave's racing bike, with payment and delivery of the bicycle to be made 10 days after the contract was made. Three days later Sam hears that Dave is going to sell the bike to Gene in three days at a higher price. If Sam really wants the bike, what should he do? Multiple Choice Immediately seek injunctive relief. Immediately sue for specific performance. Immediately sue for compensatory damages. Immediately sue for consequential damages.

Answers

Answer: Immediately seek injunctive relief.

Explanation:

An injunctive relief is an order by the court stopping an action from taking place. From the question, we are told that Sam has contracted with Dave to buy Dave's racing bike, with payment and delivery of the bicycle to be made 10 days after the contract was made.

We are further told that three days later Sam hears that Dave is going to sell the bike to Gene in three days at a higher price. If Sam really wants the bike, he should seek injunctive relief. By doing so, the court will stop Dave from selling the bike to Gene.

A local restaurant increases the prices on its burgers as soon as it begins a promotional campaign. Which of the following is most likely to be true?
a) The promotional campaign featured how much better their burgers are.
b) The promotional campaign focused on the value per dollar.
c) The promotional campaign made demand more elastic.
d) All of the above.

Answers

Answer: The promotional campaign featured how much better their burgers are

Explanation:

The most likely reason why a local restaurant will increase the prices on its burgers as soon as it begins a promotional campaign is that the promotional campaign featured how much better their burgers are.

Through the promotional campaign, the message has been passed to the customers and anyone interested that the burgers are better and customers will enjoy value for their money.

Refer to the following lease amortization schedule. The five payments are made annually starting with the inception of the lease. A $2,000 bargin purchase option is exercisable at the end of the five-year lease. The asset has an expected economic life of eight years.
Lease Payment Cash Payment Effective Interest Decrease in Balance Balance
34,600
1 8,000 ?? ?? 26,600
2 8,000 2,660 5,340 21,260
3 8,000 2,126 5,874 15,386
4 8,000 1,539 6,461 8,925
5 8,000 ?? ?? ??
6 2,000 182 1,818 0
What is the effective annual inerest rate?
A. 9%
B. 10%
C. 11%
D. 20%

Answers

Answer:

B. 10%

Explanation:

The computation of the effective annual interest rate is shown below:-

Effective annual interest rate = Lease payment third effective interest ÷ Lease payment second balance × 100

= $2,126 ÷ $21,260 × 100

= 10%

Therefore for computing the effective annual interest rate we simply applied the above formula.

Hence the correct option is B.

The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $15.90 for each of the 25 million shares sold. The initial offering price was $17.50 per share, and the stock rose to $19.40 per share in the first few minutes of trading. Raven paid $860,000 in direct legal and other costs and $330,000 in indirect costs.What was the flotation cost as a percentage of funds raised?

Answers

Answer:

22.38%

Explanation:

Raven corporation has just gone public

They received $15.90 for each 25 million shares that was sold

The first step is to calculate the net amount raised

Net amount that was raised= 15.90×25,000,000 = 397,500,000

397,500,000-860,000-330,000

= 396,310,000

Underwriter spread= 17.50-15.90

= 1.6 per shares

Total underwriter spread= per share spread× number of shares that were offered

= 1.6×25,000,000

= 40,000,000

Total direct costs= 40,000,000+860,000

=40,860,000

Indirect flotation cost= indirect cost+price appreciation

= 330,000+(19.40-17.50)×25,000,000

= 330,000+1.9×25,000,000

=330,000+47,500,000

= 47,830,000

Total flotation cost= 47,830,000+40,860,000

= 88,690,000

Therefore, the flotation cost as a percentage of funds raised can be calculated as follows

= 88,690,000/396,310,000 × 100

= 0.2238×100

= 22.38%

Hence the flotation costs as a percentage of funds raised is 22.38%

Question 2 options: Assume that in short-run equilibrium, a particular monopolistically competitive restaurant (Applebee's) charges $12 for each order of Chicken Parmesan and sells 52 orders per day. The average total cost (ATC) for those 52 orders is $10. Enter your answers below to the nearest whole number. How much revenue will the firm take in each day

Answers

Answer:

104

Explanation:

Match the product cost variance with the manager most probably responsible. Some answers may be used more than once. Some answers may not be used.

1. Variable overhead cost variance
2. Direct matierals efficiency variance
3. Direct labor cost variance
4. Fixed overhead cost variance
5. Direct materials cost variance

CHOICES:

a. Human resources
b. Purchasing
c. Production

Answers

Answer:

1 = A

2 = C

3 = C

4 = C

5 = B

Explanation:

This would actually depend on how the organization is set up and what type of business it is, but I believe these would be the most likely centers responsible for the difference

York's outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends: 2015 total cash dividends $20,000 ; 2016 total cash dividends 28,000 ; 2017 total cash dividends 200,000 ; 2018 total cash dividends 350,000. Please explain how to journal this.

Answers

Answer:

dividends paid during 2015:

preferred stock dividends = $20,000, dividend per preferred stock = $0.25

common stock dividends = $0, dividend per common stock = $0

dividends paid during 2016:

preferred stock dividends = $28,000, dividend per preferred stock = $0.35

common stock dividends = $0, dividend per common stock = $0

dividends paid during 2017:

preferred stock dividends = $30,000, dividend per preferred stock = $0.375

common stock dividends = $170,000, dividend per common stock = $0.85

dividends paid during 2018:

preferred stock dividends = $30,000, dividend per preferred stock = $0.375

common stock dividends = $320,000, dividend per common stock = $1.60

Since the preferred stocks are not cumulative, any preferred dividends that are not paid during a year will not be paid in future years.

A registered representative receives an order from a corporate issuer to buy 500,000 shares of that issuer's stock in the market, 5 minutes prior to market close. The registered representative should:

Answers

Answer: C. inform the company that this is a possible market manipulation under the Securities Exchange Act of 1934

Explanation:

The Securities Exchange Act of 1934 is meant to govern the actions of issuers and their affiliates engaging in trade in the open market. One reason for this is to prevent stock price manipulation.

SEC Act Rule 10b-18 might rule this transaction as a manipulative activity because it goes against the section of it that states that securities cannot be traded within 10 minutes of the stock market closing if that stock is an actively traded one. If it is not then the trade should not be executed within 30 minutes of market close.

The client should therefore be informed that by placing an order 5 minutes before close they could run afoul of this Act because buying such huge amounts at such a time could influence the price upwards for when the market reopens.

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
Sales in Units
April 70,000
May 85,000
June 110,000
July 90,000
The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 15% of the following month’s sales. The inventory at the end of March was 10,500 units.
Required:
Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Sales in Units

April 70,000

May 85,000

June 110,000

July 90,000

Desired ending inventory= 15% of the following month’s sales.

The inventory at the end of March was 10,500 units.

To calculate the production required for each month, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

April:

Sales= 70,000

Desired ending inventory= 85,000*0.15= 12,750

Beginning inventory= (10,500)

Total production= 72,250

May:

Sales= 85,000

Desired ending inventory= 110,000*0.15= 16,500

Beginning inventory= (12,750)

Total production= 88,750

June:

Sales= 110,000

Desired ending inventory= 90,000*0.15= 13,500

Beginning inventory= (16,500)

Total production= 107,000

Total quarter= 268,000

Double West Suppliers (DWS) reported sales for the year of $400,000, all on credit. The average gross profit percentage was 35 percent on sales. Account balances follow:
Beginning Ending
Accounts receivable (net) $ 51,000 $ 61,000
Inventory 67,000 46,000
Required:
1. Compute the following turnover ratios. (Round your answers to 1 decimal place.)
2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. (Use 365 days in a year. Do not round intermediate calculations. Round turnover ratio calculation and final answers to 1 decimal place.)

Answers

Answer:

1. Accounts Receivables Turnover Ratio = Net Credit Sales/Average Accounts Receivables = 400,000 / (51000 + 61000)/2

= 400,000/56,000

= 7.1 times

Inventory Turnover Ratio = Cost of Goods Sold/Average Inventory = (Sales-Gross Profit)/Average Inventory = (400,000 - 35% * 400,000) / (67000 + 46000)/2

=400,000 - 140,000 / 56,500

= 260,000 / 56,500

= 4.6 times

2. Average Days to Collect Receivables = 365/7.1 = 51.40 or 52 days

Average Days to Collect Inventory = 365/4.6 = 79.34 days

A company incurs $4,050,000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime. The following data are available: Department Expected use of Driver Cost Ordering and Receiving 2,000 $1,200,000 Mixing 50,000 1,500,000 Testing 1,500 1,350,000 Production information for Goo is as follows: Department Expected use of Driver Ordering and Receiving 400 Mixing 20,000 Testing 500 Compute the amount of overhead assigned to Goo. $2,760,000.

Answers

Answer:

$1,290,000

Explanation:

Goo:

Ordering and Receiving = 400 / 2,000 = 20%

Mixing = 20,000 / 50,000 = 40%

Testing = 500 / 1,500 = 33.33%

allocated overhead costs:

Ordering and Receiving = 20% x $1,200,000 = $240,000

Mixing = 40% x $1,500,000 = $600,000

Testing = 33.33% x $1,350,000 = $450,000

total allocated overhead costs = $1,290,000

At the beginning of the meeting Kira does not properly lead the team during the ______ stage of team development. Therefore; the team was stuck in the ______ stage.

Answers

Answer:

forming; storming

Explanation:

The forming is the first stage in group development. At this stage, the members of the group reveal their expectations with respect to the work and share their that skils in which they are perfect so that the work could be allocated easily.

After this finishing this step, the next step is storming in which the members give their suggestions to accomplish a task that has assigned to each member of the group

Therefore as per the given situation, the forming and storming are the correct options.

Team development is the ultimate word for the teamwork or the entire growth of the firm with the team as well. The team works as a group in the firm and accomplishes the tasks within the set target in order to accomplish the organization target as well as the individual targets.  

The answer to the blanks are forming; storming

The forming is the first stage in group development. At this stage, the members of the group reveal their expectations with respect to the work and share their skills in which they are perfect so that the work could be allocated easily.

After this step, the next step is storming in which the members give their suggestions to accomplish a task that has been assigned to each member of the group

To know more about the options of the stage of team development, refer to the link below:

https://brainly.com/question/14449327

Mountain Ski Corp. was set up to take large risks and is willing to take the greatest risk possible. Lakeway Train Co. is more typical of the average corporation and is risk-averse.
Projects Returns: Expected Value Standard Deviation
A $ 310,000 $ 173,000
B 676,000 413,000
C 163,000 120,000
D 134,000 101,000
a-1. Compute the coefficients of variation. (Round your answers to 3 decimal places.)
a-2. Which of the following four projects should Mountain Ski Corp.
A. Project B
B. Project A
C. Project C
D. Project D

Answers

Answer:

B. Project A

Explanation:

Coefficient of variation=standard deviation/expected return value

Project A:

Coefficient of variation=$173,000/$310,000= 0.558  

Project B:

Coefficient of variation=$413,000/$676,000=  0.611  

Project C:

Coefficient of variation=$120,000/$163,000=0.736

Project D:

Coefficient of variation=$101,000/$134,000=0.754

The Project A has the lowest rate of risk per unit of return, hence, it is the preferred choice of investment

Stephenson Co.'s 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is correct?
A. The bond's coupon rate exceeds its current yield.
B. The bond's yield to maturity is greater than its coupon rate.
C. If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850.
D. The bonds current yield exceeds its yield to maturity.

Answers

Answer:

The bond's yield to maturity is greater than its coupon rate.

Explanation:

At a discount, the price of the bond is less than its face value, from bond theory principles, this is likely to happen when YTM is more than the coupon rate of the bond. Due to this the present value of the coupons and their face value are going to be lower than 1000 since YTM is greater.

The coupon rate is given as annual interest divided by face value

While

The yield is interest/ current price.

The answer to the question is therefore

The bond's yield to maturity is greater than its coupon rate.

The wage rate for all units of labor is $10/hr. You have spent $160,000 on developing a production process (Process X) that will allow you to produce 8 units for every unit of labor. If you use this production process, the accounting profits will cover the initial investment within 6 months. If you use your normal production process (not Process X), you can produce 10 units for every unit of labor. Both processes are fully scalable, so the marginal product of labor is fixed for any reasonable amount of labor you could hire. Based on this information, what should you do?

Answers

Answer:

The normal production process should be followed.

Explanation:

The normal process should be used because when it uses the process “X” then the marginal productivity of labor (MPL) is 8 units and the wage of labor is $10 per hour. Secondly, when it uses a normal production process then the marginal productivity of labor is 10 units and the wage rate is the same that is $10 per hour. Therefore, the normal production process is giving the greater marginal productivity of labor, accordingly this process should be followed.

Using the percentageofsales ​method, the estimated total uncollectible accounts are . The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of . The Accounts Receivable balance is . The amount of the adjusting entry for UncollectibleAccounts Expense​ is:

Answers

Answer:

the main part of ur question hasbeen left out so no one could help but i got a answer anyways

Explanation:

it's b

$7,322 + $2,635

= $9,957

A regulated Natural Monopoly is more likely to advertise freely under which of the following types of regulation?
a) price regulation
b) profit regulation
c) output regulation
d) social regulation

Answers

Answer:

A

I took the quiz

Explanation:

Backus Inc. makes and sells many consumer products. The firm’s average contribution margin ratio is 35%. Management is considering adding a new product that will require an additional $15,000 per month of fixed expenses and will have variable expenses of $7.80 per unit.
Required:
A. Calculate the selling price that will be required for the new product if it is to have a contribution margin ratio equal to 35%.
B. Calculate the number of units of the new product that would have to be sold if the new product is to increase the firm's monthly operating income by $6,000.

Answers

Answer:

a) $12 per unit

b) $2,693 units

Explanation:

contribution margin ratio formula = contribution margin / total revenue

contribution margin = total revenue - variable costs

0.35 = (revenue - 7.80) / revenue

0.35revenue = revenue - 7.80

7.80 = 0.65revenue

revenue = 7.80/.65

revenue = 12

number of units required to increase revenue by $6,000:

= (fixed costs + desired profits) / contribution margin

= ($15,000 + $6,000) / $7.80 = $21,000 / $7.80 = 2,692.31 ≈ we must round up to $2,693 units

Ownership costs incurred after the initial purchase and associated with the ongoing use of the product or material purchased include which of the following?
a) Energy Usage
b) Purchase Price
c) Product Liability Costs
d) Customer Dissatisfaction Costs
e) Warranty Costs

Answers

Answer:

a) Energy Usage

Explanation:

Total cost of ownership (TCO) can be defined as the summation of the purchase price (P) and operating costs (O) of an asset over the asset's lifespan.

Mathematically, it is given by the expression;

Ownership costs incurred after the initial purchase and associated with the ongoing use of the product or material purchased include an energy usage.

Energy refers to the amount or quantity of power which is being consumed by an individual, group of people or organization over a specific period of time. As the consumers continue to use energy, they're being charged or made to pay a utility fee regularly for their amount of consumption, which is usually calculated hourly (kilowatts per hour or kwh).

The break-even point is a.the maximum possible operating loss. b.where the total sales line intersects the total costs line on a cost-volume-profit chart. c.the total fixed costs. d.the maximum possible operating income.

Answers

Answer:

The answer is B.

Explanation:

To a layman, break-even point is the point where an entity neither make profit nor loss. It is the point where total revenue equals total cost(where the total sales line intersects the total costs line on a cost-volume-profit chart).

Points greater or above this intersection or point mean the firm is making profit and points lesser or below this intersection or point mean the firm is making loss.

Terry Dactel is considering the purchase of an asset having the following cash flows (in 000's):CF Prob.5 20%12 30%18 30%20 20%What is the asset’s standard deviation (in 000's)?

Answers

Answer: b. $5.4

Explanation:

First calculate the Expected return;

Expected cashflow = ∑ (Probability of cashflow * cashflow)

Expected cashflow = (5 * 0.2) + (12*0.3) + (18*0.3) +(20*0.2)

=$14

Standard deviation = √∑ [Probability * (CF - Expected CF)^2]

Standard deviation= √[(0.2*(5 - 14)^2) + (0.3*(12-14)^2) + (0.3*(18-14)^2) + (0.2*(20-14)^2)

Standard deviation = $5.4

A firm hires labor in a perfectly competitive labor market. Its current profit-maximizing hourly output is 100 units, which the firm sells at a price of $5 per unit. The Marginal Physical product (MPP) of the last unit of labor employed is 5 units per hour. The firm pays each worker an hourly wage of $15. a)What Marginal Revenue (MR) does the firm earn from sale of the output produced by the last worker employed? b)Does this firm sell its output in a perfectly competitive market?

Answers

Answer:

A.Marginal Revenue $3

B. No

Explanation:

A.Calculation for the Marginal Revenue (MR) that the firm earn from sale of the output produced by the last worker employed

Based on the information given we were told that the Marginal Physical product of the last unit of labor was 5 units per hour in which the firm pays each worker an hourly wage of $15. Now let calculate the Marginal Revenue using this formula

Marginal Revenue = Employees hourly wages/Marginal Physical product unit of labor

Where,

Employees hourly wages=$15

Marginal Physical product unit of labor =5 units per hour

Let plug in the formula

Marginal Revenue =$15/5

Marginal Revenue =$3

B. No reason been that the current profit-maximizing hourly output was 100 units in which we were told that the firm sells at a price of $5 per unit. While the Marginal Revenue gotten in (A) above was $3 which is lesser or lower than $5 per unit which simply means that the firm does NOT sell its output in a well perfectly competitive market .

Budgeted production 1,092 units Actual production 905 units Materials: Standard price per ounce $1.767 Standard ounces per completed unit 12 Actual ounces purchased and used in production 11,186 Actual price paid for materials $22,931 Labor: Standard hourly labor rate $14.92 per hour Standard hours allowed per completed unit 4.0 Actual labor hours worked 4,661 Actual total labor costs $75,741 Overhead: Actual and budgeted fixed overhead $1,189,000 Standard variable overhead rate $28.00 per standard labor hour Actual variable overhead costs $130,508 Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor rate variance is a.$21,730.60 favorable b.$6,199.13 unfavorable c.$21,730.60 unfavorable d.$6,199.13 favorable

Answers

Answer:

Direct labor rate variance= $6,199.13 unfavorable

Explanation:

Giving the following information:

Labor:

Standard hourly labor rate $14.92 per hour

Actual labor hours worked 4,661

Actual total labor costs $75,741

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 75,741/4,661= $16.25

Direct labor rate variance= (14.92 - 16.25)*4,661

Direct labor rate variance= $6,199.13 unfavorable

In monopolistic competition, short-run positive economic profits of firms in the market will cause the market demand to expand.
A. True
B. False

Answers

Answer:

True

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

There are low barriers to entry r exit of firms. So, if a firm is earning economic profit in the short run, in the long run, more firms would enter into the industry.

examples of monopolistic competition are restaurants  

Which of the following items would be a way to manipulate the cash flow from operating activities amount on the statement of cash flows?

a.
Adding depreciation back to net income to determine cash flow from operating activities.

b.
Including interest expense and tax expense in the calculation of cash flow from operating activities.

c.
Recording an item that should be recorded as an operating activity as an investing activity.

d.
The cash flow statement cannot be manipulated.

Answers

Answer:

C. Recording an item that should be recorded as an operating activity as an investing activity.

Explanation:

Hope it helped

The answer to the question is c

Delta Importers has a pure discount loan with a face value of $180,000 due in one year. The assets of the firm are currently worth $215,000. The shareholders in this firm basically own a ________ option on the assets of the firm with a strike price of

Answers

Answer: call; $180,000

Explanation:

Delta Importers has a pure discount loan with a face value of $180,000 due in one year. The assets of the firm are currently worth $215,000. The shareholders in this firm basically own a call option on the assets of the firm with a strike price of $180,000.

The equity of the firm is owned by the shareholders and it is identical to when a call option is being held and the strike price will be equal to the face value of $180,000.

Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the of inflation.

Answers

Answer:

shoe-leather costs

Explanation:

Inflation is a persistent rise in general price levels.

shoe-leather costs of inflation is the cost in terms of  time and effort spent by individuals in reducing their cash holdings in order to avoid paying inflation tax.

Bob's shoe cost of inflation includes :

1. the time and effort expended in going to purchase items immediately he is paid

2. the time and effort expended in converting the money he didn't spend to a more stable foreign currency.

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