Which of the following is an example of a contractionary monetary policy?A)Transfer payments to poor families are reducedB)The fed buys government securities in the open marketC)The discount rate raisedD)The required reserve ratio is loweredE)Anything the fed does to shift the money supply to the right is a contractionary policy?

Answers

Answer 1

The increased discount rate is an illustration of contractionary monetary policy.

Which of the following describes a contractionary policy?

When the government either reduces expenditure or increases taxes, it is implementing a contractionary fiscal policy. Its name refers to the manner it contracts the economy. It decreases the amount of money that can be spent by both businesses and consumers.

What is a contractionary policy?

In order to combat inflation, a type of monetary policy known as a contractionary monetary policy aims to slow down the rate of monetary expansion. The main sign of an overheated economy, which can be the outcome of prolonged periods of economic expansion, is a spike in inflation.

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Related Questions

if the consumer price index (cpi) was 220 in 2009 and 225 in 2010, by how much percent did the price of the average good increase?

Answers

if the consumer price index (cpi) was 220 in 2009 and 225 in 2010, the increase in percentage is 6.18%.

consumer price index (cpi)

Understanding the Consumer Price Index The CPI estimates the average change in prices paid by consumers for a basket of goods and services over time, often known as inflation. It essentially aims to quantify an economy's aggregate price level and hence evaluate the buying power of a country's unit of currency. See the CPI website for a smaller table including only current CPI data (2000-Present). For clarity, the Consumer Price Index (CPI-U) is reported to be based on a 1982 base. However, the BLS adjusted the index to an average of 100 for the years 1982 through 1984 (inclusive), hence there is no single day when it was exactly 100.

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what is the most likely reason for hiring host-country nationals to fill most of a company's foreign positions?

Answers

The values of said local labor are simple for them to comprehend Workforce.

Is it two words?

The workforce as a whole is regularly cited by economists, and you've actually heard news reports on the labor in the nursing or auto industries. Given that it refers to a large number of individuals the word "workforce" can be used either singularly or plurally. Since the beginning of the 1960s, it has been in use.

What does a company's staff consist of?

The term "workforce" refers to the number of individuals who are employed by a certain business or who are engaged in a particular task, i.e., human resources. The idea of workforce planning is also directly tied to the maximizing of workers' production, as the phrase itself indicates.

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although household incomes across all income quintiles in the united states have gone up in terms, the distribution of income in terms has become less equal. multiple choice question. absolute; relative credit; cash cash; credit relative; absolute

Answers

Although household incomes across all income quintiles in the United States have gone up in absolute terms, the distribution of income in relative terms has become less equal.

The lowest 1/5 of values incomes from 0-20% of the range are represented by the first quintile. The second quintile contains values between 20 and 40%, the third quintile contains values equal between 40 and 60%, the fourth quintile contains values between 60 and 80%, and the fifth quintile has the greatest 1/5 of values between 80 and 100%. It is calculated as the difference between the total income obtained by the top quintile.

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which statement describes the rational expectations of people and businesses when a shift in aggregate demand occurs?

Answers

People and firms with rational expectations will be aware that when there is a change in aggregate demand, it will have a permanent influence on the price level while having a transitory impact on output and employment.

What are rational expectations?

According to the economic theory of rational expectations, people make judgements based on the best information available in the market and take into account historical trends. In accordance with rational expectations, people will occasionally make mistakes but generally make the right decisions.

American economist John F. Muth introduced the concept of rational expectations in 1961. However, it was widely applied in microeconomics as part of the new classical revolution and popularised by economists Robert Lucas and T. Sargent in the 1970s.

The idea of rational expectations suggests that, at the macroeconomic level, people should reasonably anticipate this pattern if the aggregate supply curve is vertical over time. People and firms with reasonable expectations will be aware that when there is a change in aggregate demand, it will have a permanent influence on the price level while having a transitory impact on output and employment.

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ssume brazil has production possibilities to produce either 50 batches of apples or 50 batches of peaches using 100 work hours. if brazil chooses to produce 30 batches of apples, how many batches of peaches can it produce? place the moveable point at the coordinate that shows this production possibility. make sure that the point's coordinates are exactly correct.

Answers

apples produced in Brazil, it takes 1 worker hour. It'll still take 60 labour for Brazil to manufacture 30 sets of apples (30/50*100). The nation can generate 20 sets of peaches in the additional 40 hours (400.50).

production, what do you mean?

Producing anything is the method of combining different inputs, both tangible (such metal, woods, glass, or polymers) and intangible (like plans or knowledge). This output should ideally be a product or service that is useful and increases people's utility.

What does production serve as a means for?

To satisfy customer demand for these resource conversions, production is undertaken. "Production is the planned transformation of basic materials into finished goods and services."

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What is a graphical link of competitive advantage, KSFs, and supporting activities? O A. competitive success grid OB. key success factor network Q C. product life cycle UD. activity map

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An activity map is a graphical link of competitive advantage, KSFs, and supporting activities. Therefore, option d is the right choice.

An activity map connects competitive advantage, KSFs, and supporting activities visually. A diagnostic tool to find your organization's competitive edge is an activity map. It establishes a link between the value proposition of your company and the organizational activities that allow you to provide it more effectively than any rivals.

A business is considered to have a competitive edge if it can produce goods or services faster, more affordably, or both than its competitors.. These factors provide the producing unit an advantage over rivals in terms of sales or margins.

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When demand decreases and the (upward sloping) supply curve remains in the same position, O A. price falls and equilibrium quantity rises. O B. price rises and equilibrium quantity rises. O C. price falls and equilibrium quantity falls. O D. price rises and equilibrium quantity falls.

Answers

Price increases, while the equilibrium quantity decreases. when demand declines and the supply curve (which is upward sloping) remains stationary

What a balance amount means?

When a product's quantity is balanced, neither it nor it's excess are present. The amount of a good that consumers desire to buy is equal to the amount that its producers are supplying when demand and supply converge.

Equilibrium quantity and price: what is it?

The only price at which consumer and producer plans align is the equilibrium price, which is attained when the quantities sought by consumers and supplied by producers, respectively, are equal. The equilibrium quantity is the name for this ubiquitous quantity.

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last year the olsen family earned $70,000. this year their income is $77,000. in an economy with an inflation rate of 8 percent, we can conclude that the olsen's nominal income:

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In an economy with an inflation rate of 8 percent, we can conclude that the olsen's nominal income: and real income both increased.

What does nominal income mean?monetary terms Nominal income by: n. income that has not been inflated or given a buying power reduction.The income of people or nations that has been adjusted for inflation is referred to as real income. It is determined by dividing nominal income by the current level of prices.Nominal income is income that has not been modified to account for changes in buying power, or the quantity of goods or services that may be purchased with the income as a result of inflation.Current Price (P1) x Current Quantity Equals Nominal Income (Q1).A good's monetary worth is known as its nominal value. The true value is how much it is worth in relation to another item, service, or collection of things.

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true or false? the stage a product goes through from introduction to its final withdrawal is referred to as the product life cycle.

Answers

The product life cycle (PLC) is the cycle through which each item goes through from prologue to withdrawal or possible destruction It is true.

The second phase of the item life cycle is viewed as the critical stage for some organizations and makers in laying out an item's situation in a market, expanding deals, and further developing net revenues.

An item life cycle is an administration instrument that assesses an item's excursion from improvement to withdrawal from the market. As referenced before, it incorporates four phases presentation, development, development, and decline.

With that calculation in mind, it's easy to understand why some say that the customer lifecycle doesn't truly begin until Stage 5. Now is when consumers start to form their lasting opinion about your products and your brand.

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Safety stock can be used to curb lead-time variability. True False Large lots of inventory can lead to quantity discounts and lower setup costs, but larger carrying costs. True False A company expects to sell 288 units next year. Annual carrying costs are $10 per unit, ordering costs are $60. and the company operates 365 days a year. Thus, the length of the order cycle = 94.77 workdays. O True O False A company uses 40 units of inventory each week. Allowable risk of a stockout is 5% Average lead time is 3 weeks with a standard deviation of 0.5 weeks. If the distribution of usage is normal, then the reorder point is 192.8 units O True

Answers

It is true that safety stock can be used to curb lead-time variability. Large lots of inventory can lead to quantity discounts and lower setup costs, but larger carrying costs. This statement is also true.

The other two statements given are false. The expenses related to storing goods for a while before turning them into liquid capital are known as inventory carrying costs. Typically, carrying costs are stated as a percentage of the overall inventory value.

Simply put, safety stock is excess inventory that a manufacturer or retailer keeps on hand in case demand spikes ad hoc. This indicates that there is extra stock over the desired quantity that you would typically keep for daily operations.

Preventing stockouts is one of the primary goals of manufacturers' and retailers' safety stock strategies. Stockouts are typically brought on by:

Consumer demand changes

Inaccurate stock predictions

Lead times for raw materials might vary

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The debt created by a business when it makes a purchase on account is referred to as an:
account payable.
account receivable.
asset.
expense payable

Answers

A) The term "account payable" refers to the debt a company incurs when it purchases on account.

The debts incurred by a company as a result of numerous underlying transactions are represented by a number of accounts on the balance sheet. A company's debts consist of amounts owed to third parties, such as creditors.

The short-term debt payment known as Accounts Payable must be paid in order to avoid default. Description: When you order goods or services without paying in cash up front, Accounts Payable becomes a liability due to a specific creditor. This indicates that you purchased the goods on credit.

What is Records Payable?

The company's financial, administrative, and clerical support is handled by the Accounts Payable department. They are in charge of recording the company's short-term debts, making payments to suppliers and other creditors, and paying vendor invoices or bills.

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the flow of funds from country to country is a major theme on the ap test. (a) list three reasons why funds would flow from the us to another country (or vice versa). with each of your reasons, explain why the money would be changing locations. (b) when money leaves the us, how does this impact the value of the us currency? draw how this would impact the dollar in the foreign currency market (use the euro as the comparison currency). (c) lastly, explain the difference between the capital and current accounts and give one example of something that would fall in the current account and one thing that would fall in the capital account.

Answers

Compared to the US, emerging markets like China and India have a bigger potential for growth. Investors are so seeking faster capital and higher growth.

What distinguishes capital accounts from current accounts?

A country's balance of payments is divided in two by its current and capital accounts. The capital account documents the net change in assets and liabilities over the course of a given year, whereas the current account shows a country's net revenue over time.

Why would a nation alter its money?

The necessity to have a more secure monetary system or in nations that are simply too small to benefit from the scale economies associated with having its own currency are two typical reasons for currency replacement.

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Graphically, the market demand curve is: O the vertical sum of individual demand curves. O the horizontal sum of individual demand curves. O greater than the sum of the individual demand curves. O steeper than any individual demand curve that is part of it. A market is in equilibrium: O at all prices above that shown by the intersection of the supply and demand curves. O whenever the demand curve is downsloping and the supply curve is upsloping. O if the amount producers want to sell is equal to the amount consumers want to buy. O provided there is no surplus of the product. Sn so SA Price Quantity Using the graph above, a change from Point A to Point E represents a(n):
O increase in quantity supplied.
O increase in supply. decrease in supply. O decrease in quantity supplied.

Answers

the horizontal average of each demand curve. The vertical total of all demand curves in the market is the market demand curve. O the horizontal total of each demand curve individually

What variations of demand curves are there?

There are two distinct demand curves. demand curves on the market and for individual goods. There is a graphic representation of the demand timetable. By plotting the price and amount demanded, it can be created.

Which way is the demand curve slanting?

A demand curve frequently has a downward sloping shape, as was earlier established. This idea is supported by the demand curves for the majority of items, if not all of them. There are occasionally products with demand curves that are upward-sloping. a good with an upward demand curve

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alice and bob are participants in a televised game show, seated in separate booths with no possibility of communicating with each other. each one of them is asked to submit, in a sealed envelope, one of the following two requests for the show (requests are guaranteed to be honored): (1) give me $1000 and (2) give the other participant $4000. a. find the nash equilibrium of this game. b. suppose the stage game is repeated infinitely many times. compute the discount factor required for alice and bob to be able to cooperate on give the other participant $4000 each period.

Answers

The sole Nash equilibrium is where both players ask for "give me $1,000," which is problematic because both players would benefit from asking for "give other $4000" instead of the Nash equilibrium result. It's a prisoner's dilemma game.

A player can attain the desired result by sticking to their initial strategy, according to the game theory decision-making theorem known as the Nash equilibrium. When taking into account the choices of other players, each player's approach in the Nash equilibrium is optimal.

The most popular technique to determine the outcome of a non-cooperative game involving two or more participants in game theory is the Nash equilibrium, which bears the name of the mathematician John Nash.

In a Nash equilibrium, each player is supposed to be aware of the equilibrium strategies of the other players, and changing one's own strategy offers no advantages.

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After hearing erin’s example, what is your reaction? have you considered the opportunity cost of paying off student loans?

Answers

The opportunity cost of paying off student loans  is that amount money which cannot be used on anything else or opportunity cost of holding any other financial asset.

What is the Opportunity Cost?

The Opportunity cost is the potential benefits that an individual, investor or business misses out on when choosing one alternative over another. It is the foregone benefit that would have been derived from an option not chosen.

The opportunity cost is a strictly internal cost used for strategic contemplation; it is not included in accounting profit and is excluded from external financial reporting.

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anna filed a charge of employment discrimination. an eeoc investigation resulted in a determination to dismiss the charge. what could anna do next? group of answer choices achieve conciliation reach a settlement file a suit herself find reasonable cause

Answers

In the situation of employment discrimination, Anna has the option of filing a suit herself as the one in the best of her interest. Therefore, the option C holds true.

Employment discrimination can be referred to or considered as the practice wherein an employee or a group of employees is being socially discriminated due to a number of external factors, which is completely unrelated to the workplace environment.

In an attempt to stop the practices of discrimination, a person may file a suit regarding the same. This will help the person from being a victim of such unlikely practices within the workplace.

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Kase, an Individual, purchased some property In Potomac, Maryland, for $175,000 approximately 10 years ago. Kase is approached by a real estate agent representing a clilent who would like to exchange a parcel of land In North Carolina for Kase's Maryland property. Kase agrees to the exchange. What is Kase's realized gain or loss, recognized galn or loss, and basis In the North Carolina property In each of the following alternative scenarios? (Loss amounts should be Indicated by a minus sign.) a. The transaction qualifies as a like-kind exchange and the fair market value of each property is $735,000 (Leave no answer blank. Enter zero if applicable.) Adjusted basis in new property

Answers

Kase's realised gain is $560000, recognised gain is $0 and adjusted basis is $175000.

The taxes that must be paid in subsequent years are known as deferred taxes. It is identified as the difference between the information reported in accordance with income tax laws and that contained in accounting statements. It is indicated on the balance sheet as a current liability.

Realised amount = Fair market value - Amount realised from boot

It is given that fair market value = $735000 and amount from boot is 0

Thus, Realised amount = $735000

Realised gain = Amount realised - Cost of property

It is given that cost of property is $175000

Thus, Realised gain = $735000 - $175000

= $560000

Deferred gain = $560000

Adjusted basis = Fair value - Deferred gain

Fair value = $735000

Deferred gain = $560000

Thus, Adjusted basis = $175000

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based on this graph, which time period had the largest rise in active personnel in the u.s. military?

Answers

The highest increase in active members in the United States military occurred between 1942 and 1943.

How big is the United States military?

The United States Armed Forces are the country's armed forces. There are six service branches in the armed forces: the Army, Marine Corps, Navy, Air Force, Space Force, and Coast Guard. The president of the United States is the commander-in-chief of the armed forces and develops military policy in collaboration with the Departments of Defense (DoD) and Homeland Security (DHS), both federal executive departments that serve as the primary organs through which military policy is carried out. All six armed forces are part of the United States' eight uniformed services.

The Army has the most people on active duty, followed by the Navy and Air Force. Despite having more over 1.4 million troops in 2021, the US military is considerably outmanned by China.

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you purchased 1,000 shares of stock at $35 a share. the stock is currently selling for $39 a share. the initial margin was 70% and the maintenance margin is 30%. what is your current margin position? group of answer choices

Answers

Your actual margin position is 73.07%.

Is the margin a cost or a profit?

The amount of profit that a business keeps after deducting expenses from sales revenue is known as profit margin. It is more useful to express profit as a percentage of revenue rather than just as a monetary figure when assessing a company's financial health.

Briefing:

The number of shares = 1,000

The price of shares at purchase = $35

The total value of the stock = $35,000 ($35 x 1,000)

Initial margin position = 70% or $24,500 ($35,000 x 70%)

Maintenance margin = 30% or $10,500 ($35,000 x 30%)

Current share price = $39

Current stock value = $39,000 ($39 x 1,000)

Gain in margin position = $4,000 ($39,000 - $35,000)

Total margin position in dollars = $28,500 ($24,500 + $4,000) or ($39,000 - $10,500)

Current margin position in percentage = 73.07% ($28,500/$39,000 x 100)

Broker's margin = 23.33% ($10,500/$45,000 x 100)

Thus, the current margin position is 73.07%.

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mno preferred stock pays a dividend of $2 per year and has a price of $20. if mno's tax rate is 21 percent, the required rate of return on its preferred stock is found by which formula? multiple choice question. $20/.21 $20 - $2 $2/$20 $2/.21

Answers

mno preferred stock pays a dividend of $2 per year and has a price of $20. if mno's tax rate is 21 percent, the required rate of return on its preferred stock is found by formula:10 ($2/$20=10%).

What's the tax rate?

The percentage at which a person or business is taxed in a tax system is known as the tax rate. Statutory, average, marginal, and effective tax rates can all be presented in different ways. The following definitions of a tax base that can be used to demonstrate these rates: complementary and exclusive.

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. if you deposit $2,000 cash at your bank, the banking system money supply:

Answers

If you deposit $2,000 cash at your bank, the banking system money supply: does not change.

Do cash deposits affect the amount of money on hand?

The total amount of reserves held by a bank rises with each dollar deposited into an account. The bank will lend out the extra reserves while keeping some of the necessary reserves on hand. The money supply is increased when such loan is made. Banks "generate" money in this way to expand the available supply.

The total amount of money and other liquid assets in an economy on the measurement date is known as the money supply. Both cash and deposits that can be accessed virtually as easily as cash are roughly included in the money supply. Through a mix of their central banks and treasuries, governments issue coin and paper money.

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The profitability of the leading cola syrup manufacturers Peps Co and Coca-Cola and of the bottlers in the cola business is very different. PepsiCo and Coca-Cola enjoy an 81 percent operating profit as a percentage of sales; bottlers experience only a 15 percent operating profit as a percentage of sales. Which of the following statements explains why the cola syrup manufactuning business is potentilly so profitable relative to the bottling business? Check all that apply, O High capital costs mean that the bottling industry has considerable barriers to entry. O PepsiCo and Coca-Cola together make up the great majority of the market. O Bottlers have unique suppliers (Pepsi and Coke) while the manufacturers buy their inputs from numerous vendors

Answers

The cola syrup manufacturing business is potentially so profitable relative to the bottling business as bottlers have unique suppliers Pepsi and Coke while the manufacturers buy their inputs from numerous vendors.

Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and developed by Caleb Bradham in 1893 and marketed as Brad's Drink, it was renamed Pepsi-Cola in 1898 and later shortened to Pepsi in 1961. The top also includes sugar and vanilla.

Bradham sought to create an attractive drink that could aid digestion and boost energy. The original stylized Pepsi-Cola trademark was used between 1898 and 1905. In 1903, Bradham moved Pepsi bottling from his pharmacy to a rented warehouse.

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Cash paid to purchase long-term investments would be reported on the statement of cash flows in:

a. Cash flow from operating activities

b. Cash flow from investing activities

c. Cash flow from the financing activities

d. A separate schedule

Answers

B. Cash flow from investing activities

Cash paid to purchase long-term investments is reported on the cash flow statement in Cash flows from investing activities. This cash flow statement is a statement where it records purchases of long-term investments.

The definition of a cash flow statement, also known as a cash flow statement, is a type of financial report that contains information on receipts and disbursements of cash in a company for a certain period of time. The function of this report is to provide information as well as a revision of where the company's cash comes from and how they spend it. Simply put, this report is used to track income and expense records of all company activities.

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which of the following does not form the integral part of business analytics? a. statistics b. modelling and optimization c. machine learning d. data mining

Answers

All of the answers to the question are appropriate because they are all integral part of business analytics.

What do mean by integral part?

Something that is essential is crucial or required. If you're an essential member of a team, it signifies that you are necessary for the team to work. To complete the whole, an essential component is required. The term "essential" is almost a synonym in this context.

How important is school to our daily lives?

A child's life might include school as an integral part. A youngster attends school to learn the fundamentals of interpersonal skills, social dynamics, and adaptability in order to thrive in today's interconnected society.

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Which of the following serves as the central banker for private banks in the United States?
Question 25 options:

A)

The Federal Open Market Committee.

B)

The 12 Federal Reserve banks.

C)

The legislative branch of the government.

D)

Answers

The 12 Federal Reserve banks of the following serves as the central banker for private banks in the United States. Thus, option (b) is correct.

What is banks?

The term Bank refers to a financial institution that deals with money. For the aim of saving and investing, the individual deposits money into a personal account. Additionally, banks can offer loans and ATM services. There are two different kinds of banks, such as public and private ones.

According to the Federal Reserve, the United States' banking system, the country has a secure, adaptable, and strong monetary and financial system. The Federal Reserve System, also known as the Federal Reserve or simply "the Fed," is the central bank of The United.

Therefore, option (b) is correct.

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Which of the following must be reported by diversified companies for each of their operating segments?

a.
Segment profit or loss, expenses, and unidentifiable assets

b.
Segment profit or loss, certain revenue and expense items, and segment assets

c.
Segment profit or loss, expenses, and earnings per share

d.
Assets, liabilities, and earnings per share

Answers

Diversified companies are required to disclose segment profit or loss, specific revenue and expense items, and segment assets for each of their operating segments. The correct response is option (b).

Define diversified companies.

A corporation that is diverse owns or engages in multiple unrelated business sectors. Companies can diversify by starting new businesses on their own, merging with existing firms, or buying enterprises in different industries or service sectors. One frequently occurring type of diversified company is a conglomerate.

Businesses utilize diversification as a risk-reduction technique to expand into new markets and industries and boost profitability. This can be done through diversifying new products and services in new areas, targeting new customers and enhancing profitability.

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if not all prices adjust instantly to changing economic circumstances, an unexpected fall in the price level leaves some firms with higher-than-desired prices, and these higher-than-desired prices depress sales and induce firms to reduce the quantity of goods and services they produce. a. true b. false

Answers

If not all prices adjust instantly to changing economic circumstances, an unexpected fall in the price level , and prices depress sales and induce firms to reduce the quantity of goods and services they produce is true.

How do sales work?

A sale is a deal that involves exchanging goods or services for money along with other factors. In other terms, a sale is any action that involves handing over ownership of a thing or commodity to the buyer in return for payment.

What is a salesperson's function?

While gathering orders from current or potential sales outlets, the sales representative is in charge of selling products and attending to customer demands. While making a purchase, they make sure the buyer is happy and well-cared-for.

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your company has developed and implemented countermeasures for the greatest risks to their assets. however, there is still some risk left. what is the remaining risk called? answer residual risk risk loss exposure

Answers

The portion of risk that still exists after the execution of a countermeasure is known as residual risk.

Which phrase describes a danger that endures even after measures have been put in place?

The risk that is still there after efforts have been made to detect and reduce some or all categories of risk. Remaining risk is significant for a number of reasons. The risk that remains after applying security measures and process improvements is the first thing to take into account.

Which of the following expressions best describes the idea of residual risk?

In risk management, inherent risk and residual risk are closely related. The number of risks that exist without any controls or measures being taken to address or mitigate them is referred to as inherent risk.

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milo contributes a building with a fair market value of $400,000 to a new partnership in exchange for a 25% interest. his adjusted basis in the building is $125,000, which is subject to a $100,000 mortgage. the partnership assumes the mortgage. what is milo's basis in his partnership interest?

Answers

Milo's basis in his partnership interest is $85000.

Solution:

Basis in exchange of partnership = $125000

Percentage in partnership = 25%

mortgage = $100000

Part of mortgage shared in partnership = $40000

Milo's basis in the partnership = $125000 - Mortgage shared = $125000 - $40000 = $85000.

If the property contributed for the equity was a capital or IRC 1231 asset, the holding period of the partnership's equity includes the holding period of the contributing asset. If the partner donates other assets or funds, the holding period begins the day after the interest is earned. Any income expense profit or loss that may affect a partner's tax liability in different ways is a separately reported item.

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which of the following will increase the supply of money in the economy? select an answer and submit. for keyboard navigation, use the up/down arrow keys to select an answer. a holding currency in a checking account rather than in your pocket. b a bank making a loan. c a decrease in the required reserve ratio. your answer d all of the above.

Answers

A decrease in the required reserve ratio will increase the supply of money in the economy.

What is economy?An economy is an area where products and services are produced, distributed, traded, and consumed.It is generally understood to be a social domain that emphasizes behaviors, discourses, and tangible manifestations associated with the creation, utilization, and management of finite resources.An economy is a network of related production and consuming activities that ultimately decide how resources are distributed within a community.The requirements of those who live and work there are satisfied through the production and consumption of goods and services as a whole.A traditional economy is a wonderful illustration of an economy since it uses national traditions and history to guide the creation and distribution of products.Agriculture, fishing, and hunting make up the bulk of the traditional economy.

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