Suppose that monetary neutrality and the Fisher effect both hold. An increase in the money supply growth rate increasesa. the inflation rate and nominal interest rates.b. the inflation rate, but not nominal interest rates.c. nominal interest rates, but not the inflation rate.d. neither the inflation rate nor nominal interest rates.

Answers

Answer 1

Suppose that monetary neutrality and the Fisher effect both hold. An increase in the money supply growth rate increases is a. the inflation rate and nominal interest rates.

Many economists preserve that monetary neutrality is a good approximation for the way the economic system behaves over long intervals of time however that in the brief run economic-disequilibrium idea applies, such that the nominal money supply could have an effect on output.

Monetary neutrality is the concept that says that modifications in cash deliver have no real results in the economic system. the classical model of the rate degree. says that the actual quantity of money is usually at its lengthy-run equilibrium level.

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Related Questions

Based on your understanding of leases, which of the following statements are true? A firm with leases instead of long-term loans is likely to appear stronger in a superficial credit analysis. Lessees in general are in relatively higher tax brackets, whereas lessors tend to be in lower tax brackets. A lease contract, in general, gives the lessee the option to buy the leased property at a fair market value. Assets that are likely to have very high expected market values at expiration will tend to have lower costs of leasing.

Answers

A firm with leases instead of long-term loans is likely to appear stronger in a superficial credit analysis True.

A lease is a legally binding contract that sets out the terms under which one party agrees to lease another party's property. It guarantees the tenant or lessee the use of the property and in return guarantees the owner or landlord regular payments over a period of time.

A lease separates the legal ownership of an asset from its economic use. The title to the asset may or may not pass to the customer at the end of the lease. A contract in which legal title to an asset is transferred directly to the customer at the commencement of the contract is not considered a lease. In the case of leasing the lessee bears lower costs. Lenders also bear the risk of obsolescence.

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Bryant Manufacturing produces its product in two sequential processing departments. During October, the first process finished and transferred 322,000 units of its product to the second process. Of these units, 71,000 were in process at the beginning of the month and 251,000 were started and completed during the month. At month-end, 51,000 units were in process. Using the FIFO method, compute the number of equivalent units of production for direct materials for the process assuming that beginning work in process inventory is 30% complete for direct materials cost and ending inventory is 80% complete for direct materials cost.

Answers

For the month of October, there were 326,500 equivalent units of output for the process's direct materials.

Explaination

Initial inventory of work in progress = 65,000 units

30 percent of the initial inventory has been completed.

45,000 pieces remain in the work-in-progress inventory.

245,000 units were started and finished throughout the time frame.

Ending work-in-progress inventory completion percentage = 80%

Equivalent Units of Production (FIFO) are calculated as follows: Units started and completed during the period + [Ending Work in Process Inventory x Percentage of Completion of Ending Work in Process Inventory] + [Beginning Work in Process Inventory x Percentage Completion of Beginning Work in Process Inventory].

Equivalent Units of Production (FIFO) = [45,000 x 80%] + [65,000 x 100%-30%] + 245,000

Equivalent Units of Production (FIFO) = 45,500 + 245,000 + 36,000

326,500 units are the equivalent units of production (FIFO).

As a result, 326,500 units are the equivalent units of production for the first process's direct materials.

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What common law theories of liability might be brought by the victims of the hack of laguna productions

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Answer:

1. Breach of Contract: If Laguna Productions had entered into a contract with the victims of the hack, such as an agreement to protect their personal data, and then failed to live up to its obligations, the victims could bring a breach of contract claim against the company.

2. Negligence: If the victims can show that Laguna Productions breached the standard of care by failing to take adequate steps to protect their data, they could bring a claim of negligence against the company.

3. Negligent Misrepresentation: If the victims can show that Laguna Productions made false or misleading statements about the security of their data, and that these statements were the proximate cause of their damages, they could bring a claim of negligent misrepresentation against the company.

4. Intentional Infliction of Emotional Distress: If the victims can show that Laguna Productions acted intentionally or recklessly to cause them extreme emotional distress, they could bring a claim of intentional infliction of emotional distress against the company.

Explanation:

Which of the following terms means the chance that future interest payments will have to be reinvested at a lower interest rate? A. reinvestment rate riskB. interest rate riskC. credit quality riskD. liquidity rate risk

Answers

Which of the following phrases indicates a potential requirement for future interest payments to be reinvested at a lower interest rate: Risk of reinvestment.

Reinvestment risk is the possibility that an investor won't be able to reinvest cash flows from an investment at a rate that is comparable to their current rate of return, such as interest or coupon payments. This new rate is known as the reinvestment rate.

Zero-coupon bonds (Z-bonds), which do not issue coupon payments during the course of their tenure, are the only fixed-income instrument without inherent investment risk. The likelihood that the cash flows from an investment would produce less in a new asset, leading to a loss of opportunity, is known as reinvestment risk. There is a possibility that

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suppose that you are able to generate an annual depreciation deduction of $20,000 that would otherwise have been taxed at a 30% rate each year for 7 years. suppose that your taxes due on sale in year 7 will be $32,000 greater than if the property had not been depreciated. determine the net benefit of depreciation assuming a discount rate of 6.5%.
A) $53,499
B) $32,907
C) $20,592
D) $12,315

Answers

The net benefit of depreciation assuming a discount rate of 6.5%.is

D)$12,315

How to Calculate Depreciation?

Annual depreciation deduction of $20,000

=20000*30/100

=6000*7

=42000

=42000-32000

=10000*6.5/100

=12,315

The sum of the years' digit method of depreciation has the following formulas: Years added up equal (n / 2) (n + 1) Initial annual depreciation = (FC - SV) (n / Years Added)Normally, an item with a five-year useful life would depreciate at a rate of 20% annually. The basis of the asset would be recorded at a rate of 40% per year using the double-declining balance technique. Depreciation will surpass the asset's remaining basis after 2.5 years.The annual cost of depreciation is assumed to equal a fixed percentage (1 - K) of the Book Value (BV) at the beginning of the year in this depreciation technique.

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The chart below shows the Master Production Schedule (MPS) and committed customer orders for a new MP3 Player you manufacture. Based on this information calculate Available to Promise (ATP.)In what weeks are you available to promise more than 0 MP3 players?Group of answer choicesWeeks 3 and 7Weeks 2, 4, and 6Weeks 5 and 7Weeks 1 and 8To make your product you use 2 machines in sequence, machine A first for 15 minutes and then machine B for 20 minutes. You’re currently using a chase production strategy and demand is expect to be 450 this month and 500 next month.

Answers

Based on this information available, 25 units are available to promise in week 5 and 5 units in week 7. So, the correct option is a week 5 and 7.

What is master production schedule?

The goods a company will create, when they will be produced, and in what quantities are specified in a master production schedule (MPS). An MPS connects production capacity and demand in the market. The goal of master production scheduling is to develop a practical strategy that reduces overstock and increases on-time delivery.

What are a master production schedule's primary purpose?

The MPS provides for the effective and optimal allocation of resources and takes demand variability into account, all of which help prevent material and item shortages. The increase in manufacturing organisation efficiency is likely the biggest benefit of MPS.

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reports are prepared for a given time period.

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What do you mean is there supposed to be any pictures??

Companies usually modify or adapt elements of their marketing plan to be used in different markets in which they sell their products.A. TrueB. False

Answers

Companies usually modify or adapt elements of their marketing plan to be used in different markets in which they sell their products-True.

marketing plan

A marketing plan is an operational document that details an organization's advertising strategy for generating leads and reaching its target market. Market research to help with price choices and new market entrants. Messages that are tailored to specific demographics and geographic areas. Platforms for product and service promotion include digital, radio, the Internet, trade magazines, and a combination of these platforms for each campaign.

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Why did labor unions begin forming in the 1800s

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Answer:

The labor movement in the United States grew out of the need to protect the common interest of workers. For those in the industrial sector, organized labor unions fought for better wages, reasonable hours and safer working conditions.

Sage works in a coal mine identifying new directions to dig so that the company can find coal. What class in high school MOST likely helped Sage get started in this career?

A. business management

B. biology

C. medical terminology

D. geology
<3

Answers

The answer is most likely D, because it’s the study of earth, etc.

Sage works in a coal mine identifying new directions to dig so that the company can find coal. Geology, class in high school most likely helped Sage get started in this career. Thus, option (d) is correct.

What is career?

The term career is related to the experience and knowledge gain in person life. The career are set is beneficial for person in future life. Career are built with the help of different courses. The career built with the help of good education, developed skills, and more experience of work life. A person career are create good personality.

Geology is a branch of science that deals with the spatial form and components of the Earth, as well as how different techniques can be applied to them. The Geology topic lesson assisted the Sage in getting started in this vocation.

As a result, Geology, class in high school most likely helped Sage get started in this career. Therefore, option (d) is correct.

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The dataset belongs to a leading life insurance company. The company wants to predict the bonus for its agents so that it may design appropriate engagement activity for their high performing agents and upskill programs for low-performing agents. 1. Problem Understanding
a) Defining problem statement b) Need of the study/project c) Understanding business/social opportunity
2. Data Report
a) Understanding how data was collected in terms of time, frequency and methodology b) Visual inspection of data (rows, columns, descriptive details) c) Understanding of attributes (variable info, renaming if required)
3. Exploratory Data Analysis
a) Univariate analysis (distribution and spread for every continuous attribute, distribution of data in categories for categorical ones)
b) Bivariate analysis (relationship between different variables , correlations) a) Removal of unwanted variables (if applicable) b) Missing Value treatment (if applicable) d) Outlier treatment (if required) e) Variable transformation (if applicable) f) Addition of new variables (if required)
4. Business insights from EDA
a) Is the data unbalanced? If so, what can be done? Please explain in the context of the business b) Any business insights using clustering (if applicable) c) Any other business insights

Answers

a.  Defining problem statement b) Need of the study/project.

b. Visual inspection of data (rows, columns, descriptive details).

c. Univariate analysis (distribution and spread for every continuous attribute, distribution of data in categories for categorical ones).

d. Any business insights using clustering (if applicable).

To manage their connections, claims, and underwriting more effectively, insurance company for property and liability are gathering data from telematics, agent interactions, client interactions, smart homes, and even social media. Insurance A common industrial data warehouse model that may be used for both life and non-life insurances is the Data Warehouse Data Model. All common insurance reporting and analytical Data Marts can be produced using the data modelled in the model.

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when the government atempts to manage the economy by ultiliz9ing the tools of. spending, taxation, and debt management, it is using

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When the government makes an effort to control the economy by using fiscal policy tools. It uses expenditure, taxation, and debt management.

The phrase "fiscal policy" refers to how the government utilizes spending and taxation to affect the economy. Fiscal policy is widely used by governments to encourage robust, long-term growth and to lower poverty.

A fiscal expansion approach has reduced taxes and higher government expenditure as its two main outcomes. Both of these strategies aim to boost overall demand while reducing or boosting budget deficits.

Fiscal policy is the process through which the government alters its expenditure and revenue in order to have an effect on the wider economy. By altering its level of spending and tax revenue, the government can have a short-term positive or negative impact on the economy.

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Which of the following refers to the practice of paying to have a product appear favorably in a TV show or movie?
A. brand association
B. interactive promotion
C. market recognition
D. product placement

Answers

Option D. product placement refers back to the exercise of paying to have a product seem favorably in a TV display or movie.

The required details about product placement is mentioned in below paragraph.

Product placement, additionally recognised as embedded marketing, is a marketing method wherein references to precise manufacturers or merchandise are integrated into any other work, inclusive of a movie or tv program, with precise promotional intent. Much of that is performed with the aid of using loaning merchandise, specifically while pricey items, inclusive of vehicles, are involved.In 2021, the agreements among emblem proprietors and movies and tv packages had been really well worth extra than US$20 billion.

While references to manufacturers (actual or fictional) can be voluntarily integrated into works to keep a sense of realism or be a topic of commentary, product placement is the planned incorporation of references to a emblem or product in alternate for compensation. Product placements might also additionally variety from unobtrusive appearances inside an environment, to outstanding integration and acknowledgement of the product inside the work.

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ray's custom furniture is a business that provides custom cabinetry and furniture for both businesses and individua

Answers

It represents pull strategy.

What is pull strategy?

A pull strategy is a method of marketing and advertising. In order for a brand or product to succeed, customers are purposefully urged to seek it out. A push strategy, on the other hand, tries to place the product in areas where customers will see it and make an impulse buy. The origins of both terms may be found in supply chain management.

When adopting a push strategy, the product is frequently delivered to stores in the hopes that customers would see it and choose to buy it. In a pull strategy, client demand is created mostly through advertising and similar techniques. As a result of this demand, retailers place inventory orders with suppliers, who subsequently place orders with manufacturers for the products.

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Complete question

Bob's Custom Millwork is a business that provides custom cabinetry and furniture for both businesses and individual consumers. Bob does not make any products until he receives an order from the customer. What type of marketing strategy does this represent?

A. push strategy.

B. supply strategy.

C. demand strategy.

D. forecast strategy.

E. pull strategy.

Assume most athletic apparel bought by U.S. consumers is imported from other nations. if all else is constant, an increase in the price of foreign-made athletic apparel will cause the U.S.consumer price index to increase more than the GDP deflator

Answers

An increase in the price of foreign-made athletic apparel will cause the US Consumer Price Index to increase more than the GDP deflator is TRUE.

Consumer Price Index (CPI) measures the monthly price change in consumers' basket. CPI is commonly use to measure inflation rate of an economy.

GDP deflator is an inflation measurement tool based on the price of products produced within a country.

CPI and GDP deflator work differently. GDP deflator only include all the products produced in the country and does not include the imported products into its calculation. Meanwhile CPI calculates all of the products within the customer basket, including imported products.

GDP deflator measurement is based on the price of products produced domestically, meanwhil CPI is focus on the price of products bought and consume by consumers. CPI has fixed weights to the price of different goods, meanwhile GDP deflator assings changing weights.

Based on the case, we know that an increase in the price of the foreign-made athletic apparel will only be included in the calculation of CPI. Hence, the CPI result will be higher than the GDP deflator that does not include this kind of price in its calculation.

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Complete Question:

T/F: Assume most athletic apparel bought by U.S. consumers is imported from other nations. if all else is constant, an increase in the price of foreign-made athletic apparel will cause the U.S.consumer price index to increase more than the GDP deflator

a rent to own company is the best place to furnish your apartement because it is a cheap way to get expensive things mod 9 foolproof

Answers

A "rent-to-own" company is the best place to go to furnish your apartment because it is a cheap way to get the expensive goodies you have always wanted. This statement is true.

Which of the following is the most accurate explanation for why wise individuals would always have at least $100 in their checking accounts?

You can never predict when your checking account may be slammed with unforeseen fees or charges. Additionally, you can occasionally forget to record a payment you make using your debit or ATM card or checking account. Therefore, if you constantly maintain a $100 balance in your account, you are less likely to overdraw it.

They assert that the three most crucial considerations when purchasing a home are location, location, and location. Nearly everything else can be changed, but the location of your home cannot.

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The following expenditures relating to plant assets were made by Glenn Company during the first 2 months of 2022. (b) Indicate the account title to which each expenditure should be debited. 1. Paid $7,000 of accrued taxes at the time the plant site was acquired. 2. Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. 3. Paid $850 sales taxes on a new delivery truck. 4. Paid $21,000 for parking lots and driveways on the new plant site. 5. Paid $250 to have the company name and slogan painted on the new delivery truck. 6. Paid $8,000 for installation of new factory machinery. 7. Paid $900 for a 1-year accident insurance policy on the new delivery truck. 8. Paid $75 motor vehicle license fee on the new truck.

Answers

Paid $7,000 of accrued taxes at the time the plant site was acquired is Land.

What is Accrued Taxes?

Accrued taxes, whether they are taxes on the company's earned revenue or taxes on the value of any property the company owns, are simply taxes that have been assessed against a company but have not yet been paid.

1 Paid $7,000 of accrued taxes at the time the plant site was acquired. Land

 2 Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit Equipment

 3 Paid $850 sales taxes on a new delivery truck Equipment

 4 Paid $21,000 for parking lots and driveways on the new plant site Land Improvement

 5 Paid $250 to have the company name and slogan painted on the new delivery truck Equipment

 6 Paid $8,000 for installation of new factory machinery Equipment

 7 Paid $900 for a 2-year accident insurance policy on the new delivery truck Prepaid Insurance

 8 Paid $75 motor vehicle license fee on the new truck License Expense

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A(n) ______ standard is the quantity of material required if the process is 100% efficient without any loss or waste.

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An ideal standard refers to the quantity of material needed if the process is 100% efficient without any waste or loss.

Ideal standards are the optimum levels of performance under perfect operating conditions. It means that ideal standards are achieved only under perfect operating conditions, such as no materials spoilage, no idle time, no machine breakdowns, and no employee strikes. When ideal standards are set, it is supposed that all systems work at 100% efficiency that is employees work at the highest productivity, machines never malfunction, and material supply disruptions never take place.

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match these online auction fallout and tactics: group of answer choices herd behavior the tendency to gravitate toward and bid for auction items with 1 existing bids winner's regret involves the feeling that you paid too much for a bid item (but got it!) seller's lament [ choose ] loser's lament [ choose ] bid siphoning [ choose ]

Answers

Matching the online auction fallout and tactics, herd behavior (option E), winner’ regret (Option C), seller’s lament (Option A), loser lament (Option B), and bid siphoning (Option D).

An online auction refers to a form of an auction that occurs over the internet, enabling users to sell and bid for items or services electronically. Hence, it is a service wherein users or participants sell or bid for products or services via the Internet. There are number of tactics and their associated fallout involve in online auction. Herding behavior refers to the tendency to gravitate toward and bid on auction listings with existing bids. Winner’ regret, also called the winner's curse, is a tendency for the winning bid to exceed the intrinsic value of an item. Seller’s lament refers to the concern of not knowing how much the ultimate winner might have paid. Loser lament refers to the feeling of being too cheap in bidding and failing to win. Bid siphoning is when con artists lure bidders off legitimate auction sites by offering to sell the same item at a lower price.

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Which of the following process bubbles would you not expect to see in the logical DFD for an AP/CD process?

Answers

Requisition inventory (A)  is the process bubble you would not expect to see in the logical DFD for an AP/CD process.

Logical DFD or Logical Data Flow Diagram describes the business event and data required for each event. Logical dFD focuses on the business and business activities, instead of a implemented system operation. Logical DFD provides a solid basis for the physical DFD. Physical DFD will depict how the data system will work.

Logical DFD allows a company to highlight an shortcomings or inefficiencies in a business process. Logical DFD points out the process step that should be dropped or changed.

AP/CD or account payable/cash disbursement process represents the interacting structure of people, equipment, activities, and controls designed to handle the routines of the A/P department.

In the Logical DFD for an Ap/CD process, the only process buble that won't be included is requisition inventory. Requisition inventory is supposed to be related to managing inventory activity instead of AP/CD process.

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Complete Question:

Which of the following process bubbles would you not expect to see in the logical DFD for an AP/CP process?

a. Requisition inventory

b. Establish payable

c. Make payment

d. All of these are process bubbles

Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be consideredfrictionally unemployed.cyclically unemployed.a discouraged worker.seasonally unemployed.

Answers

cyclically unemployed a discouraged workers seasonally unemployed for changes in the business cycle.

Cyclic unemployment is a component of total unemployment that directly results from cycles of economic booms and busts. Unemployment rates typically rise during recessions and fall during expansions.

An example of cyclical unemployment is the layoff of construction workers during the Great Recession that followed the 2008 financial crisis.

Cyclic unemployment is a type of unemployment in which the labor force declines due to business cycles or fluctuations. If you are periodically unemployed, it means that your employer has laid you off because your company is trying to save money during periods of low activity.

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___ refer to control mechanisms to test the financial strength of a new venture

Answers

Financial ratios refer to control mechanisms to test the financial strength of a new venture.

In the field of business, the financial ratio can be described as the standard ratio based upon which the financial strength of a business is estimated. Based on the financial ratio, a new venture by the company is formulated.

Financial ratios act as a standard to test if the company or business is stable enough to start a new venture. The financial ratio helps in getting an insight of the financial condition of a business. No new venture of an organization can be set up before considering the financial ratio as well as the demands of the new venture.

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In a dispute regarding an insurance claim, if a term in the written policy is ambiguous, parol evidence is admissible to show the meaning.a. Trueb. False

Answers

It is true that in  a dispute regarding an insurance claim, if a term in the written policy is ambiguous, parol evidence is admissible to show the meaning.

What is insurance claim?

A formal request for compensation for damages covered by your insurance policy is known as an insurance claim. An insurance policy is a contract between you and your insurer. You are required to pay a set premium. The most typical sorts of insurance claims also include those for life, health, homeowner, and auto insurance. Claims processing, in its simplest form, is the process used by insurance companies to examine claim submissions for sufficient documentation, validation, reasoning, and validity. The insurance provider may fully or partially reimburse the healthcare provider for the cost of the procedure. When a policyholder suffers a loss that is covered by their insurance policy, they can file an insurance claim with the insurance company to obtain payment.

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The graphs below show the price effect (pink) and output effect (pale green) when a certain monopolist changes the price that it charges. Based on the price effect and output effect, which two of these price changes would be beneficial to the monopolist?

Answers

The price changes that would be beneficial to the monopolist, given the graphs and based on the price and output effect, would be Price Change A and Price Change D.

What is a monopolist ?

Companies can become monopolies by vertically integrating their operations to control the entire supply chain from manufacturing to sales, or by acquiring rival businesses to become the only producer.

The price change that would benefit the monopolist the most, based on the price effect and output effect, is the one that would lead to a higher overall revenue.

The total revenue in Price Change A is before the change is:

= 70 x 30

= $ 210

The total revenue after is :
= 60 x 40

= $ 240

This is beneficial.

The total revenue in Price Change D is before the change is:

= 40 x 6

= $ 240

The total revenue in Price Change D is after the change is:

= 50 x 5

= $ 250

Price change D is also beneficial.

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a) Identify and discuss three (3) major risks fims are always averse when they enter into
international markets especially developing economies.

(b)
Prices of goods quoted in the international marvets always have trade terms. Identify four (4)
of these terms and briefly discuss/define giving their implications for the parties involved.

Answers

Foreign exchange and political risks are the two main dangers that come with doing business internationally. It may occasionally be difficult for businesses to sustain steady and predictable revenue because of these difficulties.

What do you mean by the international market?

Marketing goods or services to consumers outside of your brand's home market is known as international marketing. Consider it to be a form of international trade.

Brands may build a worldwide audience, raise their profile, and, of course, expand their business by entering international markets.

Export, licensing, franchising, joint ventures, and foreign direct investment are examples of several forms of international marketing. The goal of global marketing is to meet customer demands internationally.

Therefore, IBM's international market is any location where it operates outside the confines of the United States. The company's domestic market, which is the geographical area inside the boundaries of a company's home country, is conceptually opposed to an international market.

Therefore, Foreign exchange and political risks are the two main dangers that come with doing business internationally. It may occasionally be difficult for businesses to sustain steady and predictable revenue because of these difficulties.

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Which of the following types of e-commerce involves businesses selling goods and services directly to individuals via the Internet?
A) B2C e-commerce
B) B2B e-commerce
C) C2C e-commerce
D) M-commerce
E) P2P e-commerce

Answers

The type of electronic commerce that involves companies selling goods and services directly to people over the Internet is called B2C e-commerce

Business-to-consumer

It is the type of operation that a company carries out when the clients are many and where a predominance of the marketing direction is expected, The application of the B2C model has caused a set of changes in the behavior of consumers in the purchasing process, among which are:

Reduction of paperworkDisappearance of physical catalogsThe most efficient attention to non-conformities

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Place in chronological order the lag phenomena associated with the use of fiscal policy to smooth business cycles.
a. signaling lag b. recognition lagc
c. impact lag
d. implementation lag

Answers

chronological order the lag phenomena associated with the use of fiscal policy to smooth business cycles are recognition lag, impact lag, and implementation lag.

What is chronological order?

The study of placing events in chronological order is known as chronology. Think about using a timeline or a list of events as an example. The "real temporal sequence of past occurrences" is also determined. A component of periodization is chronology. On Friday evening, there will be a rehearsal supper. We are hopeful that many of the visitors would then assist in cleaning up the area in preparation for tomorrow's wedding. The transition "afterward" in these phrases emphasizes a timeline of events. The same is true for dates when arranging items in chronological order; they are listed from the most recent and recent to the oldest.

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In the figure, if the interest rate is r1, then the supply of interest-bearing assets is _____ the demand for interest bearing assets, and interest rates must _____ in order to give people the incentive to invest in them.
greater than; increase
(Hint:According to the liquidity preference model of the interest rate, the interest rate is determined by the supply and demand for money.)

Answers

In the figure, if the interest rate is r1, then the supply of interest-bearing assets is greater than the demand for interest bearing assets, and interest rates must greater in order to give people the incentive to invest in them.

What is interest rate?

The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate (called the principal sum). The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place.

The interest rate over a year is known as the annual interest rate. Other interest rates are applicable over shorter time frames, such a day or a month, but they are typically annualized.

According to one definition, the interest rate "is an indication of the preference for a dollar of present [income] over a dollar of future income."

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According to Hazlitt, what is the end result when the government provides loans or subsidies to business?A. The government increases employment at the expense of overall production.B. The government increases overall production at the expense of full employment.C. The government taxes unsuccessful business in order to make successful businesses more efficient.D. The government taxes successful businesses in order to support unsuccessful businesses.

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The government increases overall production at the expense of full employment when the government provides loans or subsidies to business.

What are subsidies?

An incentive provided by the government to people or organisations in the form of money, grants, or tax breaks in order to increase the supply of particular goods and services is known as a subsidy. Consumers can get cheaper goods and commodities thanks to subsidies. Governmental payments known as subsidies are made to private organisations to support their operations and preserve jobs. Agriculture, electric vehicles, green energy, oil and gas, transportation, and welfare payments are a few examples. Government subsidies are monetary gifts that are given by the government to private organisations or other public bodies in an effort to boost the economy or support worthwhile endeavours.

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banks create money when they group of answer choices buy government bonds from households. accept deposits of cash. sell government bonds to households. allow loans to mature.

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Banks make cash during their typical activities of tolerating stores and making credits. In this model, we'll involve M1 as our meaning of cash. (M1 = cash in our pockets and balances in our financial records.) When a bank makes a credit it makes cash.

A bank can make cash by giving out credits to associations that they understand will be reimbursed. This makes a sort of IOU, so they can ensure that the money will be reimbursed. Banks then make checkable stores to pay for these assets.

By paying out less in income on stores than it obtains in interest on progress. They are open whenever the record holder needs them.

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