Answer:
1. Problem: I have a clearer knowledge of the supply side of the pricing equation than I do of the demand side. Solution: Periodic discounting to keep pace with demand.
Explanation: There is an established relationship between the demand and supply of goods and services as price changes, so it is necessary I as the marketing manager I reduce the price or give some percentage discount in order to increase the demand,this knowledge is effective in managing the supply of goods and services which will help to prevent wastages especially as it has to do with product whose demand tends to be seasonal.
Final answer:
The primary issue is comprehending the demand side when making pricing decisions based on current sales and commission data. A suitable solution is a pricing strategy that involves periodic discounting while maintaining the perceived value of the vehicles.
Explanation:
The practical problem with using current sales and commissions data to make pricing decisions is understanding the demand side of the equation, as this can greatly impact the effectiveness of various pricing strategies in a market with imperfect information. One of the strategies, based on buyers' perception of price as an indicator of quality, suggests that raising prices could potentially lead to an increased perception of automobile quality, thus, paradoxically, increasing sales despite the higher price point. Conversely, decreasing prices with the aim of clearing inventory could inadvertently signal lower quality, deterring potential customers. It's crucial for the marketing manager to consider this dynamic when planning the pricing strategy to make room for new models.
As a solution, a multifaceted pricing strategy that not only focuses on reducing inventory levels through periodic discounting to match demand but also communicates the value and quality of the cars despite the lower prices could be effective. This could include creating marketing campaigns that highlight the reliability and features of the vehicles, even if they are last year's model. The key is to strike a balance between making the cars attractive price-wise while still maintaining their perceived value. Additionally, offering incentives that do not directly alter the car's price, like extended warranties or service packages, might help retain the perception of quality.
Johnson Waterworks Corporation provides plumbing services. Transactions during the first year of operations are provided below.
a) Received $14,000 cash and issued common stock to Mitchell Johnson.
b) Paid $1,300 for equipment to be used for plumbing repairs.
c) Borrowed $15,000 from a local bank and deposited the money in the checking account.
d) Paid $300 in rent for the year.
e) Paid $400 for plumbing supplies to be used on various jobs next year.
f) Completed a plumbing repair for a law firm and received $3,200.
Calculate the amount of total assets at the end of the first year. Assume the plumbing supplies of $400 are left at the end of the year.
A. $3,400
B. $20,200
C. $10,000
D. $12,000
Answer:
The correct answer is 31,900 dollars.
Explanation:
This problem requires us to calculate the increase in total asset of JW corporation. Summary of transactions are given in the question.
We can easily find the increase in total assets by adding all cash receipt and than subtracting all payment made from it. However please note that payment made to acquire an other asset (property, plant and equipment) will not be taken as reduction from total assets. As these payment are not accounted as an expense but reduction of one asset in order to build an other asset. Detail Calculation is given below.
Receipt = a+c+f = 32,200 -A
Payment = (d) = (300) -B*
Total Asset = 31, 900 dollars
*Only rent payment will be taken as reduction.
Rent expense Debit 300
to Cash credit 300
As the product manager for the eatery division at Whole Foods, Jerry is responsible for analyzing sales data to help him manage his team. Today Jerry is analyzing his data using many different perspectives to identify different ways to improve his division. Which of the following common digital dashboard capabilities is Jerry using to analyze his department's success?
A. Slice-and-Dice
B. Competitive tables
C. Drill-down
D. Consolidation
Answer: Option A
Explanation: Slicing and Dicing relate to how details in a server can be segmented, presented and comprehended. Big data frames are divided into smaller sections and hence the process is repeated for deeper analysis till the appropriate amount of detail is reached.
Slicing relates to determining a cube sub-set by specifying a single number for one of its dimensions and making a narrower cube with a narrower dimension. On the other hand, dicing produces a sub cube by choosing several variables from either the cube's different dimensions. The cube is turned regardless of its size.
Thus, from the above we can conclude that the correct option is A.
The difference between the required rate of return on a given risky investment and that on a riskless investment with the same expected return is the
Answer:
The correct answer is risk premium.
Explanation:
Remember it with simple saying "With great risk there comes greater reward." Risk premium represents the extra return above the risk-free rate that an investor wants in order to be compensated for the risk. In other words, the riskier the investment, the higher the return the investor wants.
What are the necessary capital investments for starting a free-range poultry farm?
Answer:
chicks, chickens feed, roosting perches
Explanation:
chicks, chickens feed, roosting perches are the necessary capital investments for starting a free-range poultry farm.As the capital investment means funds or thing require to start any business so for poultry form chicks, chickens feed, roosting perches are most necessary thing.
Which field of economics deals primarily with the problems faced by low-income countries?
Answer:
Development economics
Explanation:
Development economics is a field which deals with the problems dealt by low-income countries and low-middle income countries. The focus of development economics is to solve the development problems by using economic tools and to push these low-income countries to start trade with developing or developed countries. Development economics gained popularity, especially after globalisation, because it provided low-income countries with an opportunity to interact with other countries.
Suppose that a firm in a competitive market is currently maximizing its short run profit at an output of 50 units. If the current price is $9, the marginal cost of the 50th units is $9, and the average total cost of producing 50 units is $4, what is the firm's profit?a. $0
b. $450
c. $250
d. $200
Answer: b
Explanation:
$250 is the firm's profit. Thus, option C is correct.
What is the price?
Price, which is decided upon during a deal, is the dollar value of the a good, commodity, or resource. That whenever a seller or manufacturer has monopoly power, they are referred to as price producers. Alternatively, pricing can be established by the marketplace on its own when businesses are price takers.
The total revenue will be determined as:
Total Revenue = Price x Output
Total Revenue = $9 x 50
Total Revenue = $450
The total cost of the firm product will be determined as
Total Cost = ATC x Output
Total Cost = $4 x 50
Total Cost = $200
The profit of the firm will be determined within the market
Profit = Total Revenue - Total Cost
Profit = $450 - $200
Profit = $250
Therefore, option C ($250) is correct.
Learn more about price, here:
https://brainly.com/question/20703640
#SPJ6
All of the following communications with the general public are considered to be Retail Communications subject to the communication rules on advertising EXCEPT:
a. A firm's web site
b. Communications or more than 25 retail investors within any 30 calendar day period
c. A firm's electronic bulletin board
d. An issuer's prospectus
Answer:
d. An issuer's prospectus
Explanation:
The answer will be option D as we know that a prospectus is considered to be a disclosure document, not advertising. It is intended to provide full and fair disclosure of all of the material facts about a new issue that an investor would want to know. It is the formal legal offer of a new issue. It must not contain sales or promotional claims. Prospectuses filed with the SEC are not subject to the FINRA rules on communications with the public, including the content standards. Choice B is the definition of "retail communications" which includes advertising. Choices A and C are electronic examples of advertising.
Which of the following is NOT part of the simple circular flow model?
business
government
firms
households
Answer:
The correct answer is B. Government
Explanation:
There is no doubt that the simple circular flow model explains supply and demand in an elemental economic perspective, however this model doesn’t take into account at least five other key factors of the economic systems. Those factors are:
1. Government sector.
2. Government spending.
3. The taxation system.
4. The financial institutions.
5. Imports and exports.
The correct answer is B. Government.
Consider an industry with two firms producing similar products. Each firm’s total cost (in dollars) is given below. Mega Corp: TC = 5,000 + 100Q Big Inc: TC = 4,000 + 200Q When each firm produces 8 units, ______ has a lower total cost, and when each firm produces 12 units, ______ has a lower total cost.
When each firm produces 8 units, Big Inc has a lower total cost, and when each firm produces 12 units, Mega crop has a lower total cost.
Explanation:
When each product is made 8 units, Big Inc does have a smaller total cost, and when each company produces 12 units, Mega Crop does have a smaller total cost.
A single company producing goods without near competition has a monopoly, whereas an oligopoly market does have an amount limited of extremely large companies producing similar or slightly separate goods. For both cases, the entrance of other businesses is significantly impeded.
By nationalization of a good or service like postal system a government could create a monopoly.
if estimated land value is 225,000 total net operating income is 85,000 and interest on the estimated land value is 14% per year the annual net income residual to the building on the land is___________.
Answer:
Residual income is $53,500
Explanation:
To compute residual income, we have to find first the required minimum return by multiplying the value of an asset by the rate of return. Afterwards, we will deduct the minimum rate of return from the total net operating income of the period.
Residual income = net operating income - (minimum rate of return x value of an asset)
• = $85,000 - ( 14% x $225,000 )
• = $85,000 - $31,500
• = $53,500 (answer)
The owner of ProPhone has charted the company's marginal revenue and marginal cost for its latest line of smartphones, the Blazer. Use the chart to calculate the company's profit. If ProPhone sells four phones, the company will
a. break evenb. lose moneyc. maximize profitsd. make some profit
Answer: I found the Chart
Quantity / Price / Total Revenue / Marginal Revenue / Total Cost / Marginal Cost
0 220 0 0 90 0
1 200 200 200 170 80
2 180 360 160 200 30
3 160 480 120 290 90
4 150 600 120 340 50
5 140 700 100 400 60
6 135 810 90 500 100
7 130 910 100 620 120
Explanation: The correct answer is "d. make some profit".
Because while he is getting a little profit (600 - 340 = 260), he would maximize his earnings if he sold 6 units, (810 - 500 = 310).
A company had sales of $500,000 in 1996 and sales of $720,000 in 1998. Use the midpoint formula to find the company's sales in 1997
Answer:
$610,000
Explanation:
According to the midpoint value, we have to find out the mid value of two amount.
As in the question, the sales for 1996 and the sales for 1998 are given and we have to find out the sales for 1997
So, by using the mid point formula approach, the sales for 1997 is
= (1996 sales + 1998 sales) ÷ (Number of years)
= ($500,000 + $720,000) ÷ (2 years)
= ($1,220,000) ÷ (2 years)
= $610,000
Therefore, the estimated sales value of the company for year 1997 is $610,000
Elle Inc. is a firm that holds frequent reviews and feedback sessions for its employees. It demands that the same person should review the employees of a team to ensure that the performance evaluation is consistent; tests—retests are conducted periodically to make sure the evaluation is consistent. These two steps taken by Elle focus on the _____ of performance management.
a) reliability
b) strategic congruence
c) specificity
d) acceptability
e) validity
Answer:
a) reliability
Explanation:
Based on the information provided within the question it can be said that these two steps taken by Elle focus on the reliability of performance management. This refers to making sure that you can count on the results that are gathered from the performance evaluation on the employees. Thus allowing you as a manager to manage the performance of those employees and provide correct feedback or decisions based on the results.
In the long run a company that produces and sells candy bars incurs total costs of $1,200 when output is 2,400 candy bars and $1,400 when output is 2,900 candy bars. The candy bar company exhibits
a. diseconomies of scale because total cost is rising as output rises.b. diseconomies of scale because average total cost is rising as output rises.c. economies of scale because total cost is rising as output rises.d. economies of scale because average total cost is falling as output rises.
Answer:
Option (d) is correct.
Explanation:
Economies of scale occurs when the average total cost decreases as the output increases.
Dis-economies of scale occurs when the average total cost increases as the output increases.
In the long-run,
When output is 2,400 candy bars, the total cost is $1,200
Average total cost = Total cost ÷ Output
= $1,200 ÷ 2,400
= $0.5
When output is 2,900 candy bars, the total cost is $1,400
Average total cost = Total cost ÷ Output
= $1,400 ÷ 2,900
= $0.48
In the given case, average total cost is falling as output rises.
So, the candy bar company exhibits economies of scale because average total cost is falling as output rises.
The candy bar company has been termed to exhibit the economies of sales as there has been a drop in the cost with rising in the sales. Thus, option D is correct.
In microeconomics, economies can be given as the decrease in sales, with the increase in the per-unit production cost. While diseconomies can be given as the increase in sales, with the decrease in the per-unit production cost.
The per-unit production cost can be given as:
Production cost = [tex]\rm \dfrac{Total\;cost}{Total\;sales}[/tex]
The production cost with total costs of $1,200 when output is 2,400 candy bars:
Production cost = [tex]\rm \dfrac{1200}{2400}[/tex]
Production cost = 0.5
The production cost with total costs of $1,400 when output is 2,900 candy bars:
Production cost = [tex]\rm \dfrac{1400}{2900}[/tex]
Production cost = 0.48
With the increase in the sales from 2400 candy to 2900 candy, the production cost has been decreased from 0.5 to 0.48. Thus, the condition has been termed as economies of sales as there has been a drop in the cost with rising in the sales. Thus, option D is correct.
For more information about the economies, refer to the link:
https://brainly.com/question/951950
When is it acceptable under NASAA rules for an IAR to exercise discretionary authority over the account of an investor?
A) Only when the IAR gives written notification to the investor with the confirmation of the trade.
B) If the IAR receives authority via telephone and this is followed by written authority within 10 days, the IAR may exercise discretion over the account.
C) Only when the IAR is increasing or decreasing an existing position that is held by the investor.
D) If the IAR has suggested allowing discretionary authority, then the IAR may use discretionary authority.
Answer:
B) If the IAR receives authority via telephone and this is followed by written authority within 10 days, the IAR may exercise discretion over the account.
Explanation:
The members of the North American Securities Administrators Association (NASAA) must follow their Model Rule which allows IAR the use of discretionary authority with verbal authorization (in this case a telephone call), but the verbal authorization must be confirmed by a written authorization within 10 days.
When paying your bills, it is most financially beneficial to make larger payments to:___________.
Answer:
to those outstanding payments which have highest interest rates.
Explanation:
If we pay and settle more outstanding bills now which have high interest rates it will save us from interest which will be charged in future for delayed payment as it will by multiplied by number of days or months for which it has been delayed.
So if we are not paying high interest outstanding bills it will cost us more in future by high interest amount added to the bill amount.
A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 per wash, and the price of workers is $60 per day. The car wash should hire a fifth worker if it would increase total production to at least:______
a. 92 cars per day.
b. 100 cars per day.
c. 104 cars per day.
d. 110 cars per day.
Answer:
Number of car washed is 92
So option (a) is correct answer
Explanation:
It is given that 4 workers can wash 80 cars per day
Means initially 80 cars are washed per day
And it is given that rate of car wash is $5 per car
Now price of workers is $60 per day
As per car wash is $5
So number of extra car washed [tex]=\frac{60}{5}=12[/tex]
So total number of car washed = 80 + 12 = 92 cars per day
So option (a) is correct answer
The "unemployment rate" is the number of unemployed people divided by the ________. A) population B) number working C) number in the labor force D) None of these
Answer: Option C
Explanation: The unemployment rate refers to the proportion of the unemployed workforce, calculated as a percentage.
This is considered as a lagging indicator, which means this normally goes up or down in the midst of response to changing circumstances instead of predicting them. The unemployment rate could be expected to increase when the economic situation is in bad condition and job opportunities are scarce.
In order to evaluate the jobless rate, the amount of unemployed individuals is measured by the number of working and unemployed individuals in the total labor force.
The cost to manufacture one unit of Rinker Audio Products' bestselling hearing aid, the Magnifier, is $87.50. The CFO of the company, Neha Patel, has determined that if the company expands the output of its biggest U.S. plant by 20 percent, the unit cost would be only $82.50. The concept that as plant output expands, unit costs decrease, is known as
a. minimum efficient scale.
b. lean production.
c. Six Sigma.
d. economies of scale.
e. total quality management.
Answer:
d. economies of scale
Explanation:
Based on the information provided within the question it can be said that this concept is known as an economy of scale. Like mentioned in the question this concept states that as a company scales their operation, the cost of each input unit decreases as their output or production increases, Thus granting the company a cost advantage. As is happening in this scenario.
The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. This type of promotion would best be characterized as _____.
a. public relations
b. product advertising
c. advocacy advertising
d. institutional advertising
e. comparative advertising
The University of Iowa's promotion campaigns aimed at emphasizing their friendly community and academic excellence is an example of institutional advertising, which focuses on creating a positive image for the organization as a whole.
The University of Iowa is engaging in a type of promotion that is best characterized as institutional advertising. This form of advertising is focused on establishing a positive corporate identity and influencing public perception, rather than promoting a specific product or service. The university's ads highlight the friendliness of its community and the quality of its academic programs to create an attractive overall image of the institution and reinforce positive attitudes about it. Institutional advertising is sometimes intertwined with public relations strategies, as both seek favorable impressions; however, institutional advertising is a paid effort to cast the organization in a good light within the marketplace of ideas.
April's disposable income increases from $500 to $750 and her savings increases from $100 to $150, then her marginal propensity to
a. save is 0.2.
b. consume is 5.
c. consume is 0.2.
d. save is 5.
e. save is 0.8.
Answer:
A) save is 0.2
Explanation:
Marginal propensity to save (MPS) is ratio of extra dollar saved from every extra dollar of income (increase in income). MPS is calculated by dividing change in saving by change in income.
Increase in saving = 50 (150 - 100)
Increase in income = 250 (750-500)
MPS: 50 / 250 = 0.2
Marginal propensity to consume (MPC) is ratio of extra dollar consumed from every extra dollar of income. MPC is calculated by dividing change in consumption by change in income.
Increase in consumption = (Increased income - increased saving) - (Previous income - previous saving)
Increase in consumption (750 - 150) - (500-100)
Increase in consumption = 600 - 400 = 200
Increase in income = 250 (750 - 500)
MPC = 0.8
Thus the correct answer is
A) MPs is 0.2
Jeanie had always been interested in how individuals and businesses effectively allocate their resources in order to accomplish personal and organizational goals. That’s why she majored in economics and took on an entry-level position at an accounting firm. She is very interested in further advancing her career by looking into a specialization that builds upon her academic background, and her interest in deepening her understanding of how companies adjust their operating results to incorporate the economic impacts of their practices on internal and external stakeholders. Which specialization could Jeanie follow to get the best of both worlds?
Jeanie should chose
accounting to get the best of both worlds.
The correct answer is; financial accounting.
Further Explanation:
Since Jeanie has such diverse interests she can specialize in financial accounting to have the best of both worlds. With financial accounting, she can still help the individuals and businesses accomplish their goals with their resources at hand.
When she goes into financial accounting she will be able to learn a more detailed knowledge of the framework of accounting. In this field, she will be using the external reports of the financial records. She can learn how to read the financial statements of large corporations and even go higher in her career.
Other types of accounting jobs are;
forensic accountingtax accountinginternal auditingpublic accountingLearn more about accounting at https://brainly.com/question/13724385
#LearnwithBrainly
Under NASAA's Statement of Policy on Dishonest or Unethical Business Practices of Broker/Dealers and Agents, which of the following is NOT considered when determining excessive trading in a client's account?A) Investment objectives of the client.B) Client's financial status.C) Length of association with the agent.D) Character of the account.
Answer:
Under NASAA's Statement of Policy on Dishonest or Unethical Business Practices of Broker/Dealers and Agents, which of the following is NOT considered when determining excessive trading in a client's account:
C) Length of association with the agent.
Explanation:
NASAA stands for The North American Securities Administrators Association that ensure the safety of the investor.The option a, b and d are not correct as the Under the NASAA's statement of policy of dishonest or unethical business practices of broker/dealers and agents, investment objectives of the client, financial status of the client as well as the character of the account are considered. The option c is correct as length of association with the agent is not the concern of the NASAA so it is taken into the consideration.Peter Parker, the HR vice-president of a well-known IT firm, called his team members for a meeting to discuss the measures to be taken by the company to fight recession. Peter suggested downsizing the workforce and also cutting salaries and benefits of the rest of the employees. Peter's team reached a consensus without critically testing, analyzing, and evaluating his ideas. This is an example of ________.
Answer:
groupthink
Explanation:
In team discussions and debates, groupthink is a common phenomenon where team members tend to agree with others without a constructive discussion filled with arguments. It is very common when an authoritative person (manager) is leading the discourse of discussion.
In this example, the reached consensus is an example of groupthink, since the team members did not critically evaluate the troublesome issue.
Final answer:
The given situation is an example of Groupthink
Explanation:
In the given case, a well-known IT company's vice-president of human resources, Peter Parker, scheduled a meeting with his team to discuss the steps the company would take to combat the recession. Peter recommended reducing staff numbers as well as the other employees' pay and benefits.
Groupthink occurs when a group of people reaches a consensus without critically testing, analyzing, and evaluating ideas. In this case, Peter's team accepted his suggestion of downsizing the workforce and cutting salaries without questioning or considering alternative solutions. This can be detrimental because it limits diverse perspectives and can result in flawed decision-making.
Final answer:
The given situation is an example of Groupthink
Explanation:
In the given case, a well-known IT company's vice-president of human resources, Peter Parker, scheduled a meeting with his team to discuss the steps the company would take to combat the recession. Peter recommended reducing staff numbers as well as the other employees' pay and benefits.
Groupthink occurs when a group of people reaches a consensus without critically testing, analyzing, and evaluating ideas. In this case, Peter's team accepted his suggestion of downsizing the workforce and cutting salaries without questioning or considering alternative solutions. This can be detrimental because it limits diverse perspectives and can result in flawed decision-making.
Select the correct answer.
These are the cost and revenue functions for a product line of cat food sold in 7-pound bags at a single pet store:
R(x) = 700x – 11.3x2
C(x) = 8,068 – 34.25x
Based on these functions, what is the maximum profit that can be made?
A. $1,737.82
B. $3,859.50
C. $8,068.00
D. $10,840.71
To find the maximum profit, subtract the cost function from the revenue function and find the vertex of the resulting quadratic function. The maximum profit is approximately $1,737.82.
Explanation:To find the maximum profit, we need to subtract the cost function C(x) from the revenue function R(x). The profit function is given by:
P(x) = R(x) - C(x)
Substituting the given functions into the profit function, we have:
P(x) = (700x - 11.3x2) - (8,068 - 34.25x)
Expanding and simplifying, we get:
P(x) = -11.3x2 + 734.25x - 8,068
To find the maximum profit, we need to find the vertex of this quadratic function. The x-coordinate of the vertex is given by:
x = -b/(2a) = -734.25/(2*(-11.3)) ≈ 32.57
Substituting this value back into the profit function, we can find the maximum profit:
P(32.57) ≈ $1,737.82
Learn more about Maximum Profit here:https://brainly.com/question/34760389
#SPJ12
German automakers Audi, Mercedes-Benz, and BMW all share the same goal of leading the international luxury vehicle market. Audi has made the decision to target younger professionals in established markets and this decision is reflected in the company's new, trendy body designs. Audi's approach of targeting younger professionals in established markets is a strategic move aimed at ________.A. attacking competitionB. reducing costsC. increasing qualityD. diversifying risks
Answer:
A. Attacking Competition.
Explanation:
Audi's approach of targeting younger professionals in established markets is a strategic move aimed at attacking competition because 'target market'is a market positioning strategy. A target market is a particular group of customers that a product or company is aiming at, and in the case of Audi it is young professionals in established markets. Target market is also a marketing strategy which shows the area of the market that a particular competitor wants to focus on, to gain market share.
A county or municipal authority usually grants a certificate of occupancy for new construction only after:
A. all contractors have been paid for services.
B. all work has been completed for at least thirty days.
C. the construction complies with building codes.
D. the tax assessor has valued the improvement.
Answer:
C. The construction complies with building codes.
Explanation:
A certificate of occupancy, as the name implies, is given by the local authority when the new construction is considered to be suitable for human occupation, and what determines the habitability of the building is the local building codes.
In most jurisdictions, this certificated is needed not only for new construction, but also for modificiations in existing buildings.
Select all that apply: If medically indicated after an exposure, the U.S. Public Health Service requires that your employer offers you post-exposure medication for _______.
A. HIV
B. Influenza
C. Tuberculosis
D. Hepatitis B
E. Hepatitis C
Answer:
A. HIV, D. Hepatitis B and E. Hepatitis C
Explanation:
As per Occupational safety and health administration (OSHA), every employer need to immediatly provide medical evaluation of worker or employee working in the company after their exposure to any infectious material, such as non-intact skin, blood etc. As it could lead to infection of HIV, Hepatitis B, Hapatitis C or other blood related infection. The medical report is very important to early address the possible infection.
An academic medical center is selecting a new database system for clinical research. The system needs to be "Part 11 compliant" in order to allow:
Answer: The medical center should replace it's paper records with the electronic records for the research if the system needs to be "Part 11 compliant".
Explanation:
An academic medical center who wants to select a new data base system for the clinical research, the medical center should change the paper record with the electrical records for the purpose of research, if the center wants the system to be part 11 compliant.
All the data bases of today's time are not on paper but are electrical in nature. Using this form of data base makes it easy for the research to be done. It is very easy to store data in such a form of database. If any correction is to be made, that can also be done with in seconds. Finding a particular entry is also very easy in such a data base system. This makes the work of the people very easy and saves a lot of time and efforts as compared to the time and efforts required in the data base which makes use of paper.
The Central Bank of Wiknam increases the money supply at the same time the Parliament of Wiknam passes a new investment tax credit. Which of these policies shift aggregate demand to the right?
a. both the money supply increase and the investment tax credit
b. the money supply increase but not the investment tax credit
c. the investment tax credit but not the money supply increase
d. neither the investment tax credit nor the money supply increase
Answer:
a. both the money supply increase and the investment tax credit
Explanation:
When the Central Bank of Wiknam increases the money supply, it is known as expansionary monetary policy.
When the Parliament of Wiknam passes a new investment tax credit, it is known as expansionary fiscal policy.
A shift in the aggregate demand curve to the right is when aggreagrate demand increases.
When money supply is increased, disposable income increases, consumption increases and aggregate demand increases.
Investment tax credit reduces the amount paid as tax and therefore increases disposable income, consumption increases and aggregate demand increases.
I hope my answer helps you.