Suppose that due to a fear that the United States is about to enter a long period of stagnant growth, stock prices fall by 50% on average. Predict what would happen to spending by consumers.

Answers

Answer 1

Answer:

spending would increase

Explanation:

Disposable income is either saved (invested) or spent.

If stock prices are expected to fall, individuals would be less willing to save their income and would prefer to spend their income instead.

As a result, spending would increase


Related Questions

Compute the direct material costs for the year.B.Compute the indirect labor costs for the year.C.Compute the total factory overhead costs for the year.D.Compute the cost of goods manufactured for the year.E.Compute the cost of goods sold for the year.F.Compute the gross profit for the year.

Answers

Answer:

Hi, your question is incomplete, I tried to look for it online but i could not find it.

Here are some explanations on ways to calculate the required amounts.

Part A

Direct Material Cost

This is a component used in manufacturing a product and is found in the manufacturing account.

To calculate the Direct Material costs, we deduct the Ending Material Inventory amount from the Total of Beginning Material Inventory and Material Purchases made during the period

Part B

Indirect Labor Cost

This is also a component found in the manufacturing Account.

Indirect labor costs are calculated by deducting the direct labor costs from the total labor costs incurred during the manufacturing period.

Part C

Total Overheads Costs

This is also a component found in the manufacturing Account.

Overheads are manufacturing expenses that can not be directly traced to the product being produced. Examples are electricity, water and factory rent. So add up these expenses to arrive at the amount overheads.

Part D

Costs of Goods Manufactured

This is an amount reported in the manufacturing account.

To calculate the cost of goods manufactured we add the Opening Work In Process Inventory to the Total Manufacturing Costs incurred during the period then deduct the Ending Work In Process Balance.

Part E

Cost of Goods Sold

This is an amount reported in the Trading account for profit determination.

To calculate the Cost of Goods Sold, we add the Beginning Finished Inventory Balance to the amount of Cost of Goods Manufactured then deduct the Ending Balance in Finished Inventory.

Part F

Gross Profit

This is an amount reported in the Trading account for profit determination.

To calculate the Gross Profit , we deduct the Cost of Goods Sold from the Total Sales made during the Trading period.

Using the word “CAPITALISM,” create an acrostic poem that demonstrates your understanding of the term. Feel free to come back and comment on other student poems as well!

Answers

Answer:

Capitalism is an economic system based on investing money in the expectation of making a profit. The means of production are usually privately owned by private entrepreneurs who often use wage labor to create added value. In doing so, they enjoy a great deal of legal freedom to dispose of these means, free enterprise production. This freedom also means that there is competition, which means that entrepreneurs have an interest in increasing the efficiency of their company. Hence, the capital owner will not fully consume the profit but reinvest in the business and capital accumulation takes place. The distribution of products is regulated by the market, in which the role of the government is, in principle, limited to that of market master.

Answer:

Explanation:

Controlled

Allows

Political

Innovation

Tolerant

America

Land

Inferior

State

Marketing

What are the different types of economic measurements used to analyze most economies

Answers

Answer:

The levels of poverty.

Exchange rate.

The productivity of laborers.

National debt/The total borrowings of the government.

Inequality in Income.

Real Disposable Income

The Misery Index.

Explanation:

The above are some of the distinct types of economic measurement methods that are employed to analyze the economic growth of a nation. The higher poverty level affects the economic growth negatively. Similarly, the exchange rate, the labor productivity, the amount of national debt, income inequality, etc. are the key factors that displays the economic health of a country. It helps show how well a nation has performed in a specific duration and where they are lagging behind in comparison to other nations.

Which of the following is true of marginal product? Select one:
a. When marginal product is negative, total product is increasing
b. When marginal product is increasing, total product is decreasing.
c. When marginal product is positive and decreasing. total product is decreasing.
d. When marginal product is positive and decreasing. total product is increasing by increasing amounts.
e. When marginal product is increasing, total product is increasing by increasing amounts.

Answers

Answer: When marginal product is increasing, total product is increasing by increasing amounts.

Explanation:

The marginal product is simply referred to as the additional output that is created due to the fact that an additional input has been placed into that particular organization or company.

The option thst is true of marginal product is option E "When marginal product is increasing, total product is increasing by increasing amounts".

We should also note that when the marginal product is reducing, but is still positive, then the total product will be increasing even though it'll now be at a decreasing rate.

Siskiyou Corp. has cash of $75,000; short-term notes payable of $100,000; accounts receivables of $275,000; accounts payable of $135,000: inventories of $350,000; and accrued expenses of $75,000. What is the firm's net working capital

Answers

Answer: $390000

Explanation:

First and foremost, we need to calculate the current assy from the given question which would be:

= $75000 + $275000 + $350000

= $700,000

Also, the current liabilities will be:

= $100000 + $135000 + $75000 = $210000

Therefore, the firm's net working capital willbe the difference between the assets and the liabilities calculated above. This will be:

= $700,000 - $210,000

= $390,000

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