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kvv77 [185]
2 years ago
4

Chaletland should _____ interest rates during a recession and _____ interest rates during an economic boom in order to maintain

long-run equilibrium.
a) increase; increase
b) decrease; decrease
c) decrease; increase
d) increase; decrease
Business
1 answer:
Stella [2.4K]2 years ago
7 0

Answer:

The correct answer is option c.

Explanation:

During the recession, production and investment get reduced. A decrease in the interest rate will reduce the cost of borrowing. This will make borrowing funds for investment cheaper.  

As a result, investment spending will increase. As firms invest more they will need more workers. So production and employment will increase as well.  

During inflation, there is increased demand and a higher price level. An increase in the interest rate will increase the cost of borrowing. This will make borrowing expensive. Investment spending will decline. This will cause the aggregate demand to reach to its long-run equilibrium level.

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Donna wants to open her own business. She decides that she needs to make a strategy for determining what product she should sell
Tasya [4]

Answer:

Market survey

Explanation:

For Donna to open a new business  in which she will be successful and very profitable she needs to know what problem/need her new business/product can solve in the society. this is very important to know before engaging in any form of business because businesses that solve problem/needs of its community tend to strive better even in a bad economy.

The best marketing strategy to determine this need/want is called Market survey. this survey can be carried out by creating a one page questionnaire about her intended product and post/send it to the relevant audience for appropriate feedback and also to professionals in her intended product. the feedback she gets from the questionnaire will help inform her on the best product to sell.

7 0
2 years ago
Jenna works at the grocery store and earns $9 an hour. She is busy with extracurricular activities and only works 20 hours durin
german

Answer:

earnings/per year - cost/per year - taxes = profits

Explanation:

20 h /week a  year has  4 weeks  20*52=1040 h/month

8h /1sunday a year  she only work 12 sundays   8h*12=96h

$9 /h earnings

$1000 fixed costs

$1500 travel

20% taxes

1040+96= 1136h/year

1136*9= 10224 $/year total earnings

10224-1000-1500=7724 profits before interest and taxes

7724*(1-0.20)=6179.20 total profits

7 0
2 years ago
Suppose you decide to open a copy store. You rent store space​ (signing a​ one-year lease), and you take out a loan at a local b
Vlad [161]
No. Hope that helps
4 0
2 years ago
Suppose Luther Industries is considering divesting one of its product lines. The product line is expected to generate free cash
erik [133]

Answer:

$61,127,596

Explanation:

formula for the value of operations =

[Free Cash Flows (1 + growth rate)] / (WACC - growth rate)

where

We have D/E = 2 or D=2*E  (debt-equity ratio)

Tax = T=35%,

Ks=10%,

Kd =7%

Kd*(1-T) = 7%*(1-35%) = 4.55%

WACC = Kd*(1-T)*(D/(D+E)) + Ks*(E/(D+E))

WACC = 4.55%*(2E/3E) + 10%*(E/3E)

WACC = 4.55%*(2/3) + 10%*(1/3)

WACC = 6.37%

Value of Ops = 2000000*(1+3%)/(6.37%-3%)

Value of Ops = $61,127,596

to be profitable it must receive for the product line $61,127,596

6 0
2 years ago
____ evaluation methods use some measurable quantity as the basis for assessing performance.
Jlenok [28]
Objective <span>evaluation methods use some measurable quantity as the basis for assessing performance.
Objective evaluation tends to set some sort of countable standard and judge the employees based on whether they're able to pass that standard or not. An example of this countable standards are: Total sales, total customer complaints, total customer ratings, etc.</span>
6 0
2 years ago
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