Answer:
Explanation:
1. Assuming an economy is experiencing a sharp and prolonged inflationary trend, I'll recommend the following changes:
a. Reserve ratio: I will increase the reserve ratio.
b. Discount rate: I will increase the discount rate.
c. Open market operations: I will recommend tightening the money supply through the selling of more government bonds.
2a. The reserve requirement is the central bank regulation which sets the minimum amount of reserves which must be held by a commercial bank. An increase in the reserve ratio will lead to less money in circulation.
b. the money supply: Thhe money supply will contract i.e tighten
c. Interest rates: Interest rates will rise leading to an increase in the investments which keeps money out of circulation and also lead to a decrease in inflation rates.
d. Aggregate demand. Aggregate demand would reduce, and this would lead to a reduction in inflation.
Answer:
D) consume more of Good X or less of Good Y until the marginal utility per dollar for Good X and Good Y is equal.
Explanation:
Since Joanna's marginal utility per dollar is higher for good X than per good Y, then she must consume a combination of both goods until their marginal utility per dollar is equal.
Since marginal utility is diminishing, if she reduces her consumption of good Y, maybe it will increase and match X's. Or she can choose to consume more X until its marginal utility diminishes and matches Y's.
Answer: the firm will have a temporary competitive advantage
Explanation: The firm in question would have a temporary competitive advantage. Competitive advantage describes something that places a company or business or a person above the competition such as value, rarity, difficult/costly-to-imitate amongst others. However, where a substitute is already in existence for such service, then the firm would have a temporary competitive advantage.
Answer:
Equity Beta= 2,529
Explanation:
The risk of investing in a particular stock is measured with a metric referred to as equity beta. Equity Beta measures the volatility of the stock to the market, how sensitive is the stock price to a change in the overall market. It compares the volatility associated with the change in prices of a security. It changes with the capital structure of the company which includes the debt portion.
There are 3 methods to calculate Equity Beta:
1- Using the CAPM Model
2- Using Slope Tool
3- Using Unlevered Beta
In this exercise, we have the information to use the third method.
Equity Beta Formula = Unlevered Beta [ 1 + (D/E)( 1-Tax )]
Unlevered Beta= 1,23
D/E= 0,46
Tax rate= 0,35
Equity Beta = 1,23 + (1+0,46*0,65)
Equity Beta= 2,529
Answer:
Direct Labor 574,000 Manufacturing Overhead 163,000 Wages Payable 737,000
Explanation:
The journal entry is shown below:
Work in process A/c Dr $574,000
Manufacturing overhead A/c Dr $163,000
To Wages payable A/c $737,000
(Being direct and the indirect cost is recorded)
For recording this given transaction, we debited the work in process account and manufacturing overhead account and credited the wages payable with the total amount
