According to the modern view of the Phillips curve, expansionary macroeconomic policy that leads to inflation will reduce unemploymenta. only if people underestimate the inflationary side effects of the policy.

b. only if people overestimate the inflationary side effects of the policy.

c. if people accurately anticipate the inflationary side effects of the policy.

d. only if monetary policy provides the macroeconomic stimulus.

Answers

Answer 1

Answer:

Answer:

a. only if people underestimate the inflationary side effects of the policy.

Explanation:

The modern Phillips curve suggests that as inflation increases, unemployment reduces and vice versa dependent on two factors; the level of inflation and the excess of growth rate of wages over the expected inflation. The larger the excess, the greater the effect of the expansionary monetary policy. Thus, if it is underestimated, then the unemployment will greatly reduce.

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At the beginning of a year, a company predicts total direct materials costs of $1,010,000 and total overhead costs of $1,270,000. If the company uses direct materials costs as its activity base to allocate overhead, what is the predetermined overhead rate it should use during the year?
Helen, a manager for Marshall Manufacturing, spends much of her time reviewing the global, technological, socio-cultural, competitive, and economic factors that can influence the success of her firm's marketing efforts. Helen's efforts indicate that she is involved with environmental scanning.
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Mankiw discusses Giffen goods as a possible counterexample to the law of demand. Although not explicitly mentioned by Mankiw, Veblen goods are another possible exception to the law of demand. Perform a quick web search to answer the following: a. What is a Veblen good?b. What is an example of a Veblen good? c. Why do some consumers purchase Veblen goods?

American express and discover card are examples of open loop systems.
a. True
b. False

Answers

A. True
Btw that's a picture of me.

The security market line shows the relationship between A. Expected return and standard deviation B. Expected return and beta C. Standard deviation and beta D. Correlation and standard deviation E. Systematic risk and unsystematic risk

Answers

Answer:

B. Expected Return and Beta

Explanation:

The security market line displays the expected return of an individual asset as a function of it systematic risk (the diversifiable risk) as identified by beta if an asset is correctly priced it lies on the SML and if it lies above the SML it is undervalued because they yield a higher return for a given amount of risk and if it lies below the SML it is overvalued because for a given amount of risk it yield a lower return.

Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and20,000 shares of $1 par value common stock outstanding at December 31, 2010. Therewere no dividends declared in 2009. The board of directors declares and pays a $45,000dividend in 2010. What is the amount of dividends received by the common stockholdersin 2010?a. $0b. $25,000c. $45,000d. $20,000

Answers

Answer:

The amount of dividend is $20,000.

Explanation:

Calculate the dividend on common stock using the equation as follows:

Dividend = Dividend Declared - (Number of Preferred shares * parvalue)*5%

=$45,000−(5,000×$100×5%)

=$45,000−$25,000

=$20,000

Issued stock for $6 cash (example).b. Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account.
c. Paid $513 in principal and $91 in interest expense on long-term debt.
d. Earned $88,988 in sales revenue; collected $87,949 in cash with the customers owing the rest on account.
e. Incurred $10,766 in shipping expenses, all on credit. F. Paid $28,241 cash on accounts owed to suppliers. G. Incurred $4,332 in marketing expenses; paid cash. H. Collected $620 in cash from customers paying on account. I. Borrowed $6,359 in cash as long-term debt. J. Used inventory costing $62,752 when sold to customers. K. Paid $177 in income tax recorded as an expense in the prior year.

Answers

Final answer:

The subject of this question is Business at a College level. It provides various transactions and asks for clarification. The step-by-step breakdown of each transaction helps understand the scenario and the financial implications.

Explanation:

The subject of this question is Business and it is at a College level. The question provides various transactions and asks for clarification on the subject matter. Below is a step-by-step breakdown of each transaction:

Issued stock for $6 cash: This transaction indicates that $6 cash was received in exchange for issuing stock.
Purchased equipment costing $6,320: This transaction involves the cash payment of $4,893 and the remaining balance of $1,427 charged on account.
Paid principal and interest expense on long-term debt: In this transaction, $513 is paid towards the principal amount and $91 is paid as interest expense. The debt is not specified.
Earned sales revenue and collected cash: $88,988 is earned in sales revenue, of which $87,949 is collected in cash. The remaining amount is owed by the customers on account.
Incurred shipping expenses: $10,766 in shipping expenses is incurred and charged on credit.
Paid accounts owed to suppliers: $28,241 cash is paid towards accounts owed to suppliers.
Incurred marketing expenses: $4,332 in marketing expenses is incurred and paid in cash.
Collected cash from customers paying on account: $620 cash is collected from customers who are paying on account.
Borrowed cash as long-term debt: $6,359 is borrowed in cash as long-term debt.
Used inventory costing $62,752: Inventory costing $62,752 is used when sold to customers. The information does not mention the selling price or any profit.
Paid income tax: $177 is paid as income tax recorded as an expense from the prior year.

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Final answer:

The question involves interpreting 'business transactions' and their effect on the components of the accounting equation (Assets = Liabilities + Equity). Various business transactions mentioned include issuing stock, purchasing equipment, earning and collecting sales revenue, borrowing and paying long-term debt, and more.

Explanation:

The subject of this question encompasses various business transactions that ultimately affect an entity's financial statements. The transactions in this question fall into categories of equity transactions (issuing stock), asset acquisitions (purchasing equipment), liabilities and equity transactions (borrowing and paying long-term debt), revenue and receivable transactions (earning and collecting sales revenue), expense and payable transactions (incurred shipping and marketing expenses), inventory transactions (using inventory sold to customers) and tax transactions (paying income tax recorded as an expense in the previous year).

Each of these transactions will have a dual effect on the components of the accounting equation (Assets = Liabilities + Equity).

For instance, when the company issued stocks for $6 cash, it increased its cash asset and its equity. When the company purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account, it increased its equipment asset, decreased its cash asset and increased its Accounts Payable liability.

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The Delta Co. owns retail stores that market home building supplies. Largo, Inc. builds single family homes in residential developments. Delta has a beta of 1.22 and Largo has a beta of 1.34. The riskminus free rate of return is 4 percent and the market risk premium is 6.5 percent. What should Delta use as their cost of equity if they decide to purchase some land and create a new residential community?

Answers

Answer:

12.71%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4% + 1.34 × 6.5%

= 4% + 8.71%

= 12.71%

The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is used in the computation part. We ignored the bets of Delta

who bears the greatest risk of loss of value if a firm should fail? group of answer choices bondholders common stockholders all of the above bear equal risk of loss. preferred stockholders

Answers

Common stockholders bear the greatest risk of loss of value if a firm should fail.

There are two sorts of shareholders in a company: common shareholders and preferred shareholders. They are the owners of common stocks, as their name implies, in a corporation. These individuals enjoy voting rights over matters concerning the company.

A person who has acquired at least one common share of a corporation is referred to as a common shareholder. Common shareholders have entitled to declared common dividends as well as a vote on corporate matters. In the event of bankruptcy, common shareholders are compensated last, following preferred shareholders and debtholders.

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