During the recession phase of an economic cycle, all of the following occur except? a output falls b demand for goods and services falls c deflation can occur d employment levels increase

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Answer 1

During the recession phase of an economic cycle, all of the following occur except D: employment levels increase.

The ordinary series of the economic cycle is a length of expansion, followed by way of financial top prosperity, accompanied by a decline in the economic hobby recession, followed by way of an economic recovery leading to similarly enlargement.

The economic cycle is the fluctuating kingdom of an economy from durations of monetary expansion and contraction. it's also measured with the Gross Domestic Product of a rustic or vicinity.

The economic cycle fluctuates between periods of enlargement and contraction. those modifications are caused by degrees of employment, productivity, and the whole call for and supply of the kingdom's goods and offerings.

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Disclaimer:- your question is incomplete, please see below for the complete question.

A: output falls

B: demand for goods and services falls

C: deflation can occur

D: employment levels increase


Related Questions

1) several types of risk are present in the u.s. economy. for each of the following, identify the type of risk that is present. explain your answer

Answers

a. Given that there is a chance of loss, this is a basic risk case. Terrorists carried out the attack, and a certain amount of money was lost as a result.

b. The house was damaged in the fire, which caused a monetary loss, so it is a property risk.

c. It is a case of personal risk since the family's head is completely crippled, which has an immediate effect on the family and results in the family's inability to meet its financial obligations, which results in an income loss.

d. Since the investor bought 100 shares, there was a chance of making a profit or losing money/ monetary risk, hence it was a speculative transaction.

e. Because the river's overflow affects thousands of people's property, this situation involves serious risk.

f. As the risk affected the opposing changes in the commodity price, interest rate, etc., this is an instance of financial risk.

g. Given that the worker may succeed or fail, it is a speculative case.

What are various types of risk?

There are essentially two types of risk: systematic and unsystematic. Systematic risk is the market unpredictability of an investment, which means it represents outside factors that have an impact on all (or many) businesses in a given sector or group. The asset-specific risks that can impact an investment's performance are referred to as unsystematic risks.

The most significant categories of risk that a financial analyst should take into account while assessing investment opportunities are listed below:

Systematic Risk: The effect of the market as a whole

The uncertainty that is specific to a firm or an asset

Political/Regulatory Risk: This refers to the effects of political decisions and regulatory changes.

Financial Risk: A Company's Capital Structure (degree of financial leverage or debt burden)

Changes in interest rates' effects are known as interest rate risk.

The effects of shifting social norms, movements, and discontent are referred to as social risk.

Uncertainty regarding environmental liabilities or the effects of environmental changes is known as an environmental risk.

Operational risk is the degree of uncertainty that exists with respect to a company's day-to-day operations, including its supply chain and the delivery of its goods or services.

The effect that a management team's decisions have on a firm is known as managing risk.

Legal Risk - Uncertainty regarding lawsuits or the ability to conduct business

The level of industry competition and the effect that competitors' decisions will have on a firm

Thus, there are several types of risk and each of them has its own specifications.

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Complete Question:

Several types of risk are present in the U.S. economy. For each of the following, identify the type of risk that is present. Explain your answer.

a. The Department of Homeland Security alerts the nation of a possible attack by terrorists.

b. A house may be severely damaged in a fire.

c. A family head may be totally disabled in a plant explosion.

d. An investor purchases 100 shares of Microsoft stock.

e. A river that periodically overflows may cause substantial property damage to thousands of homes in the floodplain.

f. Home buyers may be faced with higher mortgage payments if the Federal Reserve raises interest rates at its next meeting.

g. A worker on vacation plays the slot machines in a casino.

Other things remaining constant an increase or a decrease in the quantity supplied of a good is?

Answers

Reflected by an upward or a downward movement along the supply curve.

The supply curve shows how the cost of a good or service relates to how much is provided over a given length of time. In a typical situation, the price will be displayed on the left vertical axis and the quantity delivered will be displayed on the horizontal axis.

The supply curve, which rises from left to right, expresses the law of supply: In direct proportion to an increase in the cost of a certain good, more is given. In this formulation, the quantity is assumed to be the dependent variable and the price to be the independent variable. The independent variable does not typically appear on the horizontal axis or x-axis, although this is an exception in the field of economics.

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it is important that marketers can identify which strategy a competitor is using so that they better understand how to position their own products and services. you will see a list of recent or potential strategic decisions made by large firms, and your job is to identify which type of strategy was used in each example. while there are a variety of strategies across industries, most fall under four basic categories: (1) market penetration strategies emphasize selling more existing products and services to existing customers. (2) product development strategies involve creating new goods or services for existing markets. (3) market development strategies focus on selling existing products or services to new customers. the targeted new customers could be a different gender, age group, or international market. (4) finally, diversification strategies involve offering new products that are unrelated to the existing products produced by the organization. place each company decision with the appropriate strategy.

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A marketing development strategy is crucial since it aids in a planned, systematic expansion of a company's consumer base.

marketing development strategy Increasing your audience has the potential to increase leads, sales, and revenue, but careful consideration must be given to whether it is worthwhile to target new planned clients.

1. Market expansion

2. Market encroachment

3. The use of variety

marketing development strategy the ideas in question have already been defined for us.

Because Ann and Hammer are striving to develop a product for new uses, it is market development for them.

2. Apple is attempting to create an expansion strategy where additional goods and services would be sold to its customers by building mini stores within Target.

3. Disney is expanding their product line to include whole new item. A well-known channel for athletic events is ESPN.

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When two accounts are required in one journal entry, the entry is referred to as a?

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When two accounts are required in one journal entry, the entry is referred to as a Simple entry.

An accounting record called a basic journal entry only debits and credits one account. As a best practise, using straightforward diary entries is encouraged because they are simpler to comprehend. The easiest way to use them is to carefully record the justifications for each entry and save both this backup data and a copy of the entry. Simple diary entries are frequently used to document insignificant transactions like a purchase, a sale, or a refund.

Many entries are far more complicated; a payroll entry, for instance, might comprise a dozen or more accounts. Compound journal entries are what these entries are known as.

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activities g, p, and r are the immediate predecessors for activity w. if the earliest finish times for the three are 12, 15, and 10, then the earliest start time for w

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Ans.  The earliest start time for w is 15.

What is  earliest start time?

It is the earliest moment the activity can occur. begin. It corresponds to the event's earliest event time (TE), from which the activity arrow starts.

It is a day when the operation order determined based on the anticipated release date of the production order is begun at the earliest possible time, i.e., the day when the operation can begin at the earliest possible time with the materials, facilities, and personnel prepared. Similar word: leveling.

The following equation is used to determine the Early Start and Early Finish dates: Early Start = Early Finish + 1 of the preceding activity. Activity time + Early Start of activity minus one equals Early Finish of the activity.

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The journal entry to record the use of direct materials in process costing is a(n)?

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The journal entry to report the usage of direct materials in procedure costing is debit paintings in system inventory and credit raw substances stock.

A journal entry is supposed to collect your ideas and observations on a wide variety of factors and positioned the happenings of every day in writing. In this way, you're able to higher keep in mind what you probably did, what your concept is, and what changed taking place whilst you have been more youthful.

Each journal entry access contains the statistics vast to a single commercial enterprise transaction, which include the date, the quantity to be credited and debited, a short description of the transaction, and the money owed affected. relying on the employer, it is able to list affected subsidiaries, tax details, and other records. An instance of a magazine entry consists of the purchase of machinery by using the united states of America in which the equipment account might be debited, and the cash account will be credited.

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In the __________ stage of the industry life cycle, the emphasis on product design is very high, the intensity of competition is low, and the market growth rate is low.

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In the introduction stage of the industry life cycle, the emphasis on product design is very high, the intensity of competition is low, and the market growth rate is low.

Introduction, expansion, maturity, and decline are the four stages of the industry life cycle. When an industry is in the decline stage, it can no longer sustain the expansion and will eventually contract as businesses leave, merge, or go bankrupt.

The creation and first marketing of a new good or service fall under the introduction, or startup, phase. To facilitate the creation and spread of novel offers, innovators frequently found new companies. Because there is frequently little information available about the items and industry players, demand is frequently unclear.

You can learn vital information from industry cycles about supply networks, corporate strategy, and earnings as well as growth possibilities, opportunities, and obstacles. The business cycle has an impact on both firm strategy and earnings.

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For stockholders one source of future cash flows is:__.
a. dividends
b. cash flow from operations
c. free cash flow
d. net income

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dividends are one source of potential future cash flows for investors. Future cash flow will come from two sources: dividends and money made from selling stock to other investors or the business.

The DDM theory states that after adequate time value of money and discounting, dividends are the cash flows that are repaid to the shareholder. As a result, in order to evaluate a company using the DDM, you must determine the entire amount of dividend payments that you anticipate the stock will generate over the coming years. The intrinsic value of a stock was assumed to reflect the present value of all future cash flows generated by the security when the dividend discount model was created. Dividends are simply the positive cash flows produced by a firm and given to the shareholders at the same time. The projected dividends to be paid divided by the discrepancy between the needed rate of return and the growth rate is the formula for the current value of a stock with constant growth.

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The presence of a large amount of calcium oxalate crystals may indicate which disorder? hemolytic anemia hepatitis starvation urinary retention diabetes mellitus

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Large levels of calcium oxalate crystals suggest a problem with urinary retention.

You cannot completely empty your bladder when you have urinary retention. Chronic urinary retention, which results in a gradual failure to entirely empty the bladder of pee, can be either acute or chronic in nature. When the muscles in or around the bladder are weak or there is an obstruction or stricture (narrowing), urine may be held. Urinary retention can also be brought on by certain tumor types and sites, particularly drugs, dehydration, or constipation. Exercises for the pelvic floor muscles, often known as Kegel exercises, improve the function of the nerves and muscles involved in bladder emptying. You can take control of your urinary retention symptoms with the use of physical therapy. Urinary retention that is acute might be fatal. This ailment has to be treated by a doctor straight away. Even though the bladder is full, a person with severe urine retention is unable to urinate at all. This may cause severe agony.

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PLEASE HELP ASAP
Last year, $3,155.24 was withheld from your pay for federal taxes. When you calculate the amount of federal tax you owe, it comes to $2,791.80. What does this mean?
A.You must pay an additional $363.44.
B.The remaining $363.44 will be applied to your state taxes.
C.You have lost $363.44.
D.You will get $363.44 refund from the government.

Answers

The fact that your federal taxes paid were more than you calculated means that D.You will get $363.44 refund from the government.

What happens when we overpay taxes?

When a person pays too much in taxes, the Internal Revenue Service can be able to give you a refund for the amount that you overpaid.

In this case, that amount would be:

= 3,155.24 - 2,791.80

= $363.44

To get the refund, you would have to fill in your annual tax returns and the Internal Revenue Service would find the refund.

In conclusion, you can expect a tax refund of $363.44 from the government.

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Answer:

D. You will get $363.44 refund from the government.

Explanation:

connexus

The production possibilities curve for the nation of economagic shifts to the left. this could have been caused by?

Answers

For the economic nation, the output potential curve moves to the left. This might have happened as a result of a battle that depleted the economy's resources.

The maximum output of two items with a fixed amount of input is measured by a production possibilities curve. The four variables of production—natural resources (including land), labor, capital goods, and entrepreneurship combine to make up the input. The most effective way to produce a pair of items is shown visually by the production possibilities curve. When resources are allocated to producing more of one good and less of another, the points on the curve represent how much of each good will be produced.

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If inflation is increasing at 2.9 percent per year, and your salary increases at the same rate, how long will it take your salary to double?

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The salary double up after 25 years based on the inflation rate of 2.9 percent

What is the rule of 72?

The rule of 72 indicates the number of years it takes an amount of money  to double, it is determined as the 72 divided by the inflation rate which is also the growth rate of salary in this case.

Years to double salary=72/growth rate

growth rate=2.9(without the % sign)

Years to double=72/2.9

Years to double=25 years

Approximately , rounded to the nearest years, it would take 25 years for the salary to double.

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To access a location in memory when using segmented memory management, the address is composed of two entries: ____.

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To access a location in memory when using segmented memory management, the address is composed of two entries:

The segment number displacement

A memory management approach called segmentation divides each task into a number of smaller segments, one for each module that comprises components that carry out related tasks.

memory management

An operating system's ability to handle or manage primary memory and switch between main memory and the disc during the execution of processes is known as memory management. Regardless of whether a memory location is assigned to a specific process, memory management keeps track of every memory location.

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When it comes to income distribution, what income class is the marketing professional particularly attracted to?

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Middle-income families income class is the marketing professional especially drawn to when it comes to income distribution.

What is Income distribution?

The dividing of an economy's whole GDP among its residents is known as income distribution. The distribution of income has historically been prioritized in both economic theory and policy. Inequality in the distribution of income is the root cause of economic inequality, which is an issue in practically every nation on the world. The ease or equality with which revenue is distributed among the people in a community is known as income distribution. The income distribution is fully equal if everyone makes the exact same amount of money. The distribution of income is wholly uneven if no one makes any money, with the exception of one individual who makes all the money. The income distribution is fairly evenly balanced between the two extremes in most civilizations, though.

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Which type of decision is deciding whether to introduce a new product line?
a. structured
b. unstructured
c. recurring
d. non recurring
e. predictive

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Deciding whether or not to introduce a new product line is an unstructured decision.

The decision maker must use judgment, evaluation, and insights into the problem definition while making an unstructured choice. Contrarily, structured decisions are repeated and regular, and decision-makers can be effective by addressing them according to a specific process. Choosing a policy for new technology or handling a labor issue are two examples of unstructured decisions. When the decision-maker(s) are making semi-structured decisions, decision support systems perform at their best. The tax calculation is a nice illustration of a structured choice. The amount of taxation is, after all, a very clear definition of the objective. If the profit and the conditions of how it was achieved are understood, then information is attainable and controllable. The exact details of tax payment are laid forth in statutes. Unstructured decision-making is a dynamic process where a person must come up with a solution because there isn't one given or available. An individual may not have preferences or be aware of the best course of action while making this kind of decision.

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To evaluate the effectiveness or performance of a marketing strategy, firms typically use.

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To evaluate the effectiveness or performance of a marketing strategy, firms typically use a SWOT analysis. The final step in the planning process is to compare a firm's performance over time to that of competitors by evaluating performance using marketing measures such as sales, profits, gross margin, and return on investment.

Examples include your team members, patents and intellectual property, and location. The SWOT analysis framework is used to discover and analyze an organization's strengths, weaknesses, opportunities, and threats marketing The acronym SWOT is made up of these words. The major purpose of SWOT analysis is to raise awareness of the factors that influence business decisions or the development of a corporate strategy.

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. using the information from the first two steps, grey should work with his staff to come to a consensus and develop a plan of action. because grey has used the stakeholder theory to inform his decision making, he has evaluated the protentional outcome for:

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Because grey has used the stakeholder theory to inform his decision making, he has evaluated the protentional outcome for: Investors or suppliers.

Who are the investors and the suppliers in the business?

The investors are the persons that would give up their capital in the business to ensure that they are able to grow. The reason why people invest in businesses is because the business has the potential for growth and they would want to reap the benefits based on the investments that they have made.

The suppliers are the ones that would have tp provide the goods that are  produced in the company to the market. These are also the producers of a good. They ensure that it gets to the retailers.

Hence we can say that Because grey has used the stakeholder theory to inform his decision making, he has evaluated the protentional outcome for: Investors or suppliers.

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Which state's proposal embodied a principle of representing state in the congress according to their size and wealth?

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A US state's proposal embodied a principle of representing state in the congress according to their size and wealth.

In protest against Viceroy Lord Linlithgow's decision to declare India a belligerent in the Second World War without consulting the Indian people, the Congress ministries resigned in October and November 1939. Informally, "Indicate" has also referred to the Indian National Congress (Organisation) as the Syndicate and the Indira faction. The INC was led by K Kamaraj and later by Morarji Desai (O).

The Indian National Congress was established by retired British Indian Civil Service (ICS) officer Allan Octavian Hume to provide educated Indians with a forum for civil and political discourse. Following the Indian Rebellion of 1857, the British Empire took over control of India from the East India Company.

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the marketing concept holds that above all else, firms must be focused on building the highest quality product possible.

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FALSE, Marketing concept is not about businesses should prioritise producing the highest-quality product they can for customers.

More about marketing concept:

The marketing concept is the notion that businesses have a duty to their customers and that their marketing plans should be created to satisfy those demands. Part of a series on marketing concepts, the holistic marketing concept describes a marketing plan that views the company as a whole rather than as an amalgam of separate pieces.

The process of marketing involves getting the right products, services, or even ideas to the right people at the correct time, place, and price. It also involves applying the proper marketing tactics to offer the best possible customer service.

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prince is allocated 80 percent of all profits and losses with the remaining 20 percent assigned to robbins after interest of 10 percent is given to each partner based on beginning capital balances.

Answers

After the new investment, the total capital is $167,000 ($70,000 + $60,000 + $37,000).

However, based on the new investment, the indicated worth of the company is $185,000 ($37,000 x 20%). As a result, $18,000 in goodwill must be recorded, with the remaining $8,000 being allocated to the first two partners according to their respective profit-to-loss ratios: Prince—$14,400 (80%) and Robbins—$3,600 (20%).

Prince Jeffery Robbins $15,000 in total net income $8,440 in interest; $6,360 $3,700 (18,500) $(3,500)

Rest of funds to be distributed: 1,750, 1,050, 700, and 3,500 Allocation overall: $6,690 $5,310 $3,000

All interest-bearing debt plus shareholders' equity, which may comprise securities like ordinary stock, preferred stock, and minority interests, is referred to as total capital. A company's capital is the money it has on hand to cover both its ongoing expenses and potential future expansion. The four primary types of capital are working capital, debt, equity, and trading capital. Brokerages and other financial entities employ trading capital.

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Question:- Prince, Capital$70,000

Robbins, Capital 60,000

Prince is allocated 80 percent of all profits and losses with the remaining 20 percent assigned to Robbins after interest of 10 percent is given to each partner based on beginning capital balances.

On January 2, 2018, Jeffrey invests $37,000 cash for a 20 percent interest in the

partnership. This transaction is recorded by the goodwill method. After this transaction, 10 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2018, the partnership reports a net income of $15,000.

Gordon is arrested for insider trading. his case will first be heard by which court?

Answers

His case will first be heard by a trial court.

What is insider trading?

Any purchase or sale of a security made in violation of a fiduciary responsibility or other relationship of trust and confidence and based on substantial, nonpublic knowledge about the security is referred to as illegal insider trading.

What is a trial court?

Most civil and criminal matters begin in a trial court, often known as a court of first instance, which has original jurisdiction. Evidence and testimony are initially presented, received, and taken into consideration in the trial court. Trial courts make conclusions of fact and law, and eventually those findings of law may be appealed to a higher court with review authority. A court of appeal is what is often referred to as this. Trial courts may have both broad and specific jurisdictions.

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What is the coupon promotion liability that holyoak should report in its december 31, 2021, balance sheet?

Answers

The coupon promotion liability that Holyoak should report in its December 31, 2021, balance sheet is $ 22000.

What are some other types of liabilities Holyoak may have?

Holyoak may additionally be accountable for different forms of responsibilities. For instance, if they may be sued for product liability, they could want to see in the courtroom docket and protect themselves. Other capacity obligations for Holyoak include defamation, contract breach, copyright infringement, and product liability.

These responsibilities is probably owed to a financial institution mortgage or every other sort of financing within side the case of a business. Beyond coins and coins equivalents, the enterprise may additionally have belongings that aren't presently on hand. For instance, they could encompass inventory that may be offered if vital or machinery, equipment, or different items.

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grocers inc. is a grocery store that believes in and practices green marketing. grocers inc. wants to improve the environment. to do so, grocers inc. does all of the following except

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Institute green marketing in a less than collaborative spirit wants to improve the environment. to do so, grocers inc. does all of the following except

The practice of developing and advertising products based on their actual or perceived environmental sustainability is referred to as green marketing. Green marketing examples include promoting the lower emissions associated with a product's manufacturing process or the use of post-consumer recycled materials in product packaging. Some businesses may also market themselves as environmentally conscious by donating a portion of their sales proceeds to environmental causes such as tree planting. When a company’s green marketing activities are not substantiated by significant investments or operational changes, it may be criticized for false or misleading advertising.

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If there is accounting information not included in the primary financial statements that would benefit users, that information should be disclosed in?

Answers

If there is accounting information not included in the primary financial statements that would benefit users, that information should be disclosed in Function of Financial Accounting

How Does Financial Accounting Work?

Financial accounting is a part of accounting that deals with the process of documenting, compiling, and presenting the numerous transactions resulting from corporate operations throughout time.

The main purpose of financial accounting is to deliver valuable financial data to customers outside of the corporate enterprise, especially creditors and investors. These users make important resource allocation choices that have an impact on the world economy. Financial statements and related notes are the main tools used to communicate financial information to external users. Financial accounting is primarily focused on information delivery to diverse external customers.

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If a domestic firm makes the mistake of believing that foreign consumers want exactly the same products that are sold in the united states, then that firm is most likely ignoring the importance of?

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If a domestic firm makes the mistake of believing that foreign consumers want exactly the same products that are sold in the united states, then that firm is most likely ignoring the importance of cultural fit.

What does cultural fit mean?A candidate's likelihood of being able to fit in and adapt to the fundamental principles and prevailing practices that define an organization is referred to as their cultural fit.Cultural and functional fit are the two characteristics that human resource departments use to evaluate job applications. Functional fit is concerned with the candidate's hard skills, including their training, credentials, core competencies, and experience. Pre-interview confirmation of this information, which is typically included in the applicant's résumé or curriculum vitae, is usually not too difficult.In certain companies, cultural fit is so crucial that a human resource management representative may advise employing a candidate who has a good cultural match but falls short on some of the practical skills required for a given position. While a candidate's talent gap can be bridged with training, a lack of a good cultural fit may quickly result in job discontent, poor productivity, excessive absenteeism, and attrition.

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on january 1, 2021, the general ledger of grand finale fireworks includes the following account balances: accounts debit credit cash $ 42,700 accounts receivable 44,500 supplies 7,500 equipment 64,000 accumulated depreciation $ 9,000 accounts payable 14,600 common stock, $1 par value 10,000 additional paid-in capital 80,000 retained earnings 45,100 totals $ 158,700 $ 158,700 during january 2021, the following transactions occur: january 2 issue an additional 2,000 shares of $1 par value common stock for $40,000. january 9 provide services to customers on account, $14,300. january 10 purchase additional supplies on account, $4,900. january 12 purchase 1,000 shares of treasury stock for $18 per share. january 15 pay cash on accounts payable, $16,500. january 21 provide services to customers for cash, $49,100. january 22 receive cash on accounts receivable, $16,600. january 29 declare a cash dividend of $0.30 per share to all shares outstanding on january 29. the dividend is payable on february 15. (hint: grand finale fireworks had 10,000 shares outstanding on january 1, 2021, and dividends are not paid on treasury stock.) january 30 resell 600 shares of treasury stock for $20 per share. january 31 pay cash for salaries during january, $42,000. exercise 10-17 part 2 unpaid utilities for the month of january are $6,200. supplies at the end of january total $5,100. depreciation on the equipment for the month of january is calculated using the straightline method. at the time the equipment was purchased, the company estimated a service life of three years and a residual value of $10,000. accrued income taxes at the end of january are $2,000. 2. record the adjusting entries on january 31, 2018 for the above transactions.

Answers

The adjusting entries on January 31, 2018, for the above transactions.

A financial transaction is a settlement, or verbal exchange, among a client and seller to alternate goods, offerings, or assets for a fee. Any transaction entails a trade in the fame of the finances of two or greater companies or individuals.

Closing Entries

Date Accounts Debit Credit

31-Jan Service Revenue $63,400

Retained Earnings $ 63,400

(To close all income statement accounts with credit balances)

Service Revenue = $14,300 + $49,100= $63,400

31-Jan Retained Earnings $ 42,000

| Salaries Expense $ 42,000

(To close all income statement accounts with debit balances)

31-Jan Retained Earnings $ 3,300

Dividends $ 3,300

(To record closing entry for dividends)

Outstanding Shares = Outstanding shares + Shares issues - Treasury stock

| Outstanding Shares = 10,000 + 2,000 - 1,000 = 11,000 shares

Dividend = 13,000 x 0.30 = $3,300

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beginning from a point of long-run equilibrium, an increase in the market demand for wheat would result in

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Beginning from a point of long-run equilibrium, an increase in the market demand for wheat would result in beginning from a point of long-run equilibrium, an increase in the market demand for wheat would result in an increase in the market price of wheat. Existing wheat producers increasing output in the short run and earning positive economic profits. New firms entering the wheat industry in the long run.

    The long run equilibrium is a theoretical concept in economics where all markets are in equilibrium, all prices have fully adjusted, and all quantities are in equilibrium. The short-run equilibrium, where there are certain restrictions and markets are not completely in equilibrium, contrasts with the long-run. I

     n microeconomics, there are no fixed factors of production over the long run, and there is enough leeway for adjustment so there are no barriers prohibiting changing the output level by altering the capital stock or by entering or exiting an industry. This contrasts with the short-run, when some factors are fixed (paid only once) and others are changeable (depending on the quantity produced), limiting admission into or exit from an industry. 

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Find+the+time+required+for+an+investment+of+$3000+to+grow+to+$5000+at+an+interest+rate+of+8.5%+per+year,+compounded+quarterly.+(round+your+answer+to+two+decimal+places.)

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The time is 4.53 years.

Compounding is the process whereby interest is credited to an existing principal amount as well as to interest already paid. Compounding thus can be construed as interest on interest the effect of which is to magnify returns to interest over time, the so-called “miracle of compounding.

Present value:

P = $5000

Future value: A = $7000

Rate of interest:

r = 7.5 %

= 0.075

A number of compounding periods per year:

n = 4

(Compounding quarterly)

We can find the time t

by using the Compound Interest formula:

A = P (1 + rn)nt

7000 = 5000 (1 + 0.075 +4)4t

7000/5000 = (1+ 0.075 ×4)4t

1.4 = (1 +0.01875)4t

1.4 = (1.01875)4t

(1.01875)4t = 1.4

t = 4.52975

⟹ t ≈ 4.53 years.

Hence, the time is approximately

4.53 years.

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A prepayment is originally recorded as an asset. an adjusting entry at the end of the accounting period results in a(n)?

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A prepayment is originally recorded as an asset, an adjusting entry at the end of the accounting period results in a decrease.

Prepayment refers to the settlement of a debt or instalment loan before the day it is officially due. A prepayment can be the early closure of an account due to the payment of a bill, an operating expense, or a non-operating expense. Additionally, prepayments are a means of obtaining expense advantages. Prepayment examples include paying off a loan before it is due, as well as paying rent, salaries, insurance premiums, credit card bills, income taxes, sales taxes, line of credit payments, and other expenses in prepayment. Because they are expenses that a business has paid in advance in exchange for goods or services that will be provided in the future, prepayments are regarded as current assets.

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A $1,000 par-value 4-year bond pays 4oupon annually. the bond yields an effective annual interest of i nd has a modified convexity equal to 17.47. calculate i.

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The bond yields an effective annual interest of I and has a modified convexity equal to 17.47. The value of i is 3.00%.

We know the value of modified convexity and we have to calculate the value of I which is the yield to maturity (YTM) of the bond.

To get the modified convexity = 17.47; we use different values of i in the following calculation at an effective annual interest.

Time (t) Cash Flow from Coupon Payment (4% of $1000) Cash Flow from maturity amount  Total Cash Flow (CF) Present Value (PV) of cash Flow = CF/(1+i)^t Weight = PV of cash Flow/Price Convexity = Sum of [t *(1+t) * weight * 1/(1+i)^2]

1 $40   $40 $38.83 3.74% 0.07

2 $40   $40 $37.70 3.64% 0.21

3 $40   $40 $36.61 3.53% 0.40

4 $40 $1,000 $1,040 $924.03 89.09% 16.80

Total       $1,037.17   17.47

       ↑ Price   ↑ Convexity

We got the value of i = 3.00%

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