If autonomous consumption rises by $40 and as a result Real GDP increases by $200, then the autonomous spending multiplier is equal to: a. 4 b. 5 c. 25 d. 20.

Answers

Answer 1

The autonomous spending multiplier is equal to 5 (option b). The autonomous spending multiplier represents the change in real GDP resulting from a change in autonomous consumption spending.

The formula for the autonomous spending multiplier is:

Autonomous spending multiplier = Change in real GDP / Change in autonomous consumption spending

We are given that a $40 increase in autonomous consumption spending led to a $200 increase in real GDP. Therefore:

Autonomous spending multiplier = $200 / $40

Autonomous spending multiplier = 5

Therefore, the autonomous spending multiplier is equal to 5 (option b).

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Answer 2

The autonomous spending multiplier is 5. Option B

To find the autonomous spending multiplier, we can use the formula:
Multiplier = ΔReal GDP / ΔAutonomous Consumption
In this case, we are given that autonomous consumption increases by $40 and Real GDP increases by $200. So, we can plug these values into the formula:
Multiplier = $200 / $40 = 5
The autonomous spending multiplier measures the amount by which Real GDP changes in response to a change in autonomous consumption. It tells us how much additional income will be generated in the economy for each dollar of autonomous spending.

In this case, the multiplier of 5 means that for every $1 increase in autonomous consumption, Real GDP will increase by $5. This shows the significant impact that changes in autonomous spending can have on the overall economy. Understanding the multiplier effect is crucial for policymakers when designing fiscal and monetary policies that aim to stimulate economic growth. Therefore, the answer is (b) 5.

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Related Questions

ASAP How do the French measure success?

Answers

Answer:

The French measure success by how much time they got to spend with their family

Explanation:

while someone in the US bragging about work 100 hours a week making tons of money but never seeing their family or having outside of work hobbies could consider him/herself a success, a French person would probably not call that person a failure but would also not envy him/her at all.

The managers at Alpha Corp. are closely observing trends in the industry. They are trying to identify factors that might have a significant influence on Alpha's business operations. Which of the following concepts is illustrated in the scenario?

Answers

Answer:

Environmental scanning

Explanation:

Environmental scanning is when information is being gathered about external forces inorder to know the factors that have impacts on a business. It is  also the gathering of information on situations which allows a business create and build good customer relationship.

Business environments are dynamic and could have impacts on the success of a firm hence requires business scanning inorder to align with the trend. One the purpose of environmental scanning is to provide future business directions to an organization and also assist in analyzing the strength, weakness, opportunities and threats to an organization.

Factors that might have significant influence on business operation includes but not limited to social and demographic factors, how competitors are reacting, technology, how well customers are reacting to the company's products, creditors, legal issues etc.

enter mia profit/loss for the 2 month

Answers

She profits more each month

How does feedback of players influence the development of a game?

Answers

Answer:

Evaluative Feedback Increases.

Explanation:

While comparative feedback decreases future game play. Furthermore, negative feedback decreases players’ feeling of competence, but also increases immediate game play. Positive feedback, in contrast, satisfies competence and autonomy needs, thereby boosting intrinsic motivation.

The feedback of players influence the development of a game they use the feedback and fix it. From this evaluation of feedback may increases.

What is feedback?

When a system's outputs are used again as inputs in a cause-and-effect circuit or loop, this is known as feedback. The system is said to feed back on itself in this case.

Anything you discover prior to the game's release will save you from having to deal with it later. You can save time later on by using player feedback to pinpoint the problems with the game.

There is a very significant likelihood that players may become frustrated and, as a result, find the game confusing and worthless if they don't receive prompt and accurate feedback when playing games.

Therefore, the feedback of players influence the development of a game they use the feedback and fix it. From this evaluation of feedback may increases.

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What is the purpose of international trade and how does it help the countries involved in it?

Answers

Answer:

the trade without border is

international trade.it purposes to share goods ,ideas,resources, etc.

it helps country in the time of need.

Answer:

Global trade makes it possible for people living in one country to use products from another country, allowing them to benefit from products that are not domestically produced. If a country is endowed with abundant labor or favorable climatic conditions, it has an advantage over the nations that do not have them. It makes economic sense to produce and export goods that other countries cannot produce as cheaply. This way, the exporters can increase sales with foreign commerce and strengthen their country’s economy, while earning profits at the individual level. It also helps strengthen the foreign currency reserves of the country.

International trade is a key driver in regulating foreign currency rates. Global trade helps balance a country’s cyclical pattern of trade deficit and surplus. When a country’s currency is strong, its imports tend to exceed its exports, thus creating a trade deficit for the importer. This situation leads to the exporter country’s currency strengthening and the importer’s currency eventually weakening. Over time, a role reversal happens with exports overtaking imports, thus strengthening the exporter’s currency and creating a trade surplus for the importer. Many other factors influence this cycle too, for example, product cost inflation and interest rates. Global trade removes boundaries and makes the whole world into a single marketplace, and that can work to the benefit of all the participating partners.

Explanation:

PLATO answer!

if the availability of a physical commodity over the period of a futures contract has value to users of the commodity, the commodity is said to provide:

Answers

If the availability of a physical commodity over the period of a futures contract has value to users of the commodity the commodity is said to provide hedging benefits or hedging value.

Hedging benefits refer to the advantage gained by market participants who use futures contracts to manage their exposure to price fluctuations in the physical commodity.

By entering into a futures contract users can lock in a future price for the commodity which provides stability & certainty in their procurement or supply chain management.

This hedging value allows users to mitigate the risks associated with price volatility & ensure a reliable supply of the commodity at a predetermined price thereby supporting their operational efficiency & financial planning.

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Cost Approach to Value
There are five basic steps to the cost approach:
1. Estimate the value of the site as if vacant.
2. Estimate the reproduction cost or replacement cost (new) of all the improvements (excluding any included as part of the site value).
3. Estimate accrued depreciation from all causes (physical deterioration, functional obsolescence, and external obsolescence).

Answers

The cost approach to value is one of the three main approaches used in real estate appraisal.

It is based on the principle of substitution, which states that a rational buyer will not pay more for a property than the cost of acquiring an equally desirable substitute property. The approach involves five basic steps, starting with estimating the value of the site as if vacant, followed by estimating the reproduction or replacement cost of all the improvements, and then estimating the accrued depreciation from all causes.

The final step involves subtracting the total accrued depreciation from the replacement cost to arrive at the property's value. The cost approach is particularly useful when valuing new or recently constructed properties that do not have a significant sales history.

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this is the portion of total risk that is attributable to overall economic factors. What is this called?

Answers

The portion of total risk that is attributable to overall economic factors is called systematic risk. This type of risk affects the entire market or a particular segment of the market and cannot be diversified away by investing in a variety of different assets.

Systematic risk is also known as market risk as it is associated with the performance of the overall market. Systematic risk is caused by factors such as changes in interest rates, inflation, political instability, and natural disasters. These factors can affect the prices of stocks and other assets, causing them to fluctuate in value.

Investors can manage systematic risk by diversifying their portfolio across different asset classes and sectors, but they cannot eliminate it entirely. In contrast, unsystematic risk is specific to a particular company or industry and can be reduced by diversifying investments across multiple companies and industries.

By understanding and managing systematic risk, investors can make informed decisions about their investments and minimize their exposure to the potential losses that may occur due to economic factors beyond their control.

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The key provisions of the sarbanes-oxley act include.

Answers

The Sarbanes Oxley act is related to the reform of corporate financial reporting and the accounting profession. This act is also known as SOX.

What are the Key provisions of SOX?

Following are key provisions of SOX:

certify the accuracy of their company's financial statements by the corporate executive.through assessing internal controls to prevent wrong, misleading, or fraudulent financial data.There are criminal penalties for misleading shareholders and altering documents to impede an investigation.

Thus, the SOX act is related to the reforms for corporate financial reporting and the accounting profession.

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Identify the two attributes of transportation economy of scale and economy of distance. (check all that apply.)

Answers

The two attributes of transportation economy are economy of scale and economy of distance.

The two attributes of transportation economy are:

Economy of Scale: This attribute refers to the cost advantages gained through increased volume or scale of transportation. As the quantity of goods being transported increases, the average cost per unit tends to decrease. This reduction in cost is achieved through factors such as higher utilization of transportation assets, bulk purchasing power, and efficient use of resources. By leveraging economies of scale, transportation providers can achieve cost efficiencies and offer competitive pricing to their customers.

Economy of Distance: This attribute relates to the cost advantages gained by transporting goods over longer distances. When goods are transported over greater distances, the average cost per unit tends to decrease. This is due to factors such as spreading fixed costs (e.g., infrastructure and equipment) over a larger distance, optimizing transportation routes, and maximizing load capacity. Economy of distance allows businesses to access larger markets, reduce per-unit transportation costs, and expand their reach to customers in different regions or countries.

Therefore, the correct options are:

Economy of Scale

Economy of Distance.

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Bill smith economic influences

Answers

I don't really know of Bill Smith but I know Adam

Smith's best - known ideas formed the basis of economic theory , including the invisible hand theory ( the idea that free - markets coordinate themselves ) , the division of labor ( the idea that people should specialize in specific tasks ) , and the measurement of economic activity ( Gross Domestic Product ) .

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when economists say the quantity supplied of a product has increased, they mean the_____

Answers

When economists say the quantity supplied of a product has increased, they mean: c) the supply curve has not shifted, but there has been a movement along the supply curve,

When economists state that a product is being supplied in a greater quantity, they are referring to a shift in the supply curve. A change in the product's price prompts a change in the amount of the product that suppliers are willing and able to sell, which causes this movement.  Suppliers are generally ready to produce and sell more of a commodity as the cost of the commodity rises since it then becomes a more profitable scenario.

The quantity supplied increases as a result, moving the supply curve to the right and increasing supply at each price level. Whereas, when a commodity's price drops, suppliers are typically willing to produce and sell less of the product because doing so is now less profitable. The quantity supplied at each price level declines as a result, shifting the supply curve to the left.

Complete Question:

When economists say the quantity supplied of a product has increased, they mean:

a) the supply curve has shifted to the right:price of the product has fallen, and consequently, suppliers are producing less of it

b) supply curve has shifted to the left: price of the product has risen, and consequently, suppliers are producing more of it:'

c) the supply curve has not shifted, but there has been a movement along the supply curve,

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Allison would like to find all records that are in stock. In her database, she has a field named "in stock." When the item is in stock, a "yes" appears. What should Allison do?


Conduct a query and set the criteria as =yes.

Conduct a query and set the criteria to >2.

Locate each record and check each one.

Sort the records in ascending order by item number.

Answers

Answer: she should conduct a query and set the criteria to >2

Explanation:

Don’t know this but I tried I am only in 9th grade

The Internal Revenue Service (IRS) provides a toll-free help line for taxpayers to call in and get answers to questions as they prepare their tax returns. In recent years, the IRS has been inundated with taxpayer calls and has redesigned its phone service as well as posting answers to frequently asked questions on its website (The Cincinnati Enquirer, January 7, 2010). According to a report by a taxpayer advocate, callers using the new system can expect to wait on hold for an unreasonably long time of minutes before being able to talk to an IRS employee. Suppose you select a sample of callers after the new phone service has been implemented; the sample results show a mean waiting time of minutes before an IRS employee comes on line. Based upon data from past years, you decide it is reasonable to assume that the standard deviation of waiting times is minutes. Use

Answers

There is enough evidence to conclude that the actual mean waiting time turned out to be significantly less than 12 minutes.

The inner sales carrier is the revenue service for the united states federal authorities, that's responsible for amassing U.S. federal taxes and administering the internal revenue Code, the primary frame of the federal statutory tax law.

The IRS's task is to provide the united states' taxpayers with pinnacle-first-class service by means of assisting them to recognize and meet their tax duties and putting in force the regulation with integrity and fairness to all. it's far an enterprise of the department of the Treasury and led by the Commissioner of inner sales, who is appointed to a five-yr term by using the President of the united states.

The responsibilities of the IRS include supplying tax help to taxpayers; pursuing and resolving times of misguided or fraudulent tax filings; and overseeing numerous benefits applications, consisting of the low-priced Care Act.

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Macroeconomics is the branch of economics that focuses on:
A. comparing the lifestyles of poor and wealthy citizens.
B. economic principles affecting entire countries.
C. helping people find jobs when they're unemployed.
D. financial problems affecting individual families.

Answers

Answer:

B. economic principles affecting entire countries.

Explanation:

Macroeconomics is the part of economic studies that studies the economy of a country as a whole. In this branch of economics, the aggregate income, growth, expenditure and inflation are considered. The performance of the entire economy is measured under macroeconomics. National income, Gross domestic product, inflation and unemployment fall under the macroeconomic studies.

Answer:

economic principles affecting entire countries

Explanation:

i took the test

Uber and spotify have a streaming partnership that allows riders to stream their personal spotify playlists while riding with uber. This inter-organizational relationship affords both uber and spotify a business advantage and is best described how?.

Answers

The relationships between Uber and Spotify that allows for streaming while in an Uber is known as a Non-equity alliance.

What is a Non-equity alliance?

It is a type of partnership between businesses to boost their sales and patronage in order to increase revenue.

Companies that get into this type of alliance maintain their independence and don't own shares in the other company. Uber and Spotify are independent but working together so this is a non-equity alliance.

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Answer:

The partnership between Uber and Spotify which had a streaming collaboration is an example of a strategic alliance.

What is a strategic alliance?

A strategic alliance refers to a business arrangement between firms  to undertake a mutually beneficial project while each retains its independence

In conclusion, a strategic alliance's benefit is that it allows partners to scale quickly and build innovative solutions for their customers.

PLEASE ANSWER THIS QUESTION ASAP

Complete the personality assessment found at the link below. Describe what you found out about yourself. Please write about each of the questions below. Your journal should be in paragraph form, not bullet points. You must include the results of your Myers-Briggs assessment, and your entry must be at least 250 words long. There are no right or wrong answers, but it is worth 20 points. Please edit your work for spelling, grammar, and punctuation to receive full points.

Does it fit you or do you disagree?  

What sort of work atmosphere would you be best in, given the results of the Myers-Briggs Type indicator?

Does it fit with your ultimate work goals and if so, in what way?

What motivates you?

What do you think is the professor’s MBTI based on the design of the course and your interactions thus far? (No worries if you don't know your instructor well. This question was created to have you explore the personality types further and see how close you can get to guessing your instructor's type, from interactions you have had in this course.)

Any other observations or thoughts?

Answers

Answer:

Read each page and do the quizzes. After you have read through the pages of the website, assess what you learned. Write a 600 word summary in your own words that identifies the main points you learned. Your summary should include at least one question and answer from each quiz. Explain your answers. Use a publishing program to create a safety poster to make workers aware of safety hazards. I do not agree with the link assessmne,t but I would be a stafe 3 on the MyersBriggs scale because odf above

.Explanation:

Yes it fits ultimately.

Explain disadvantages of glass in window glazing( 100
to 150 words)
2) suggest polymer than can be used to replce glass in window
glazing and explain the product properties

Answers

Disadvantages of glass in window glazing: Glass can have a few disadvantages in window glazing. One of the main disadvantages of glass is that it is fragile and can break easily, leading to safety issues, particularly in public areas where large windows are involved.

Glass also has a high thermal conductivity, which can cause heat loss in buildings, increasing heating costs. It is also less effective than other types of glazing in insulating sound and is less impact resistant than some other materials.Polymer that can replace glass in window glazing: Poly car bonate is a polymer that can be used to replace glass in window glazing. Poly car bonate is a lightweight, shatterproof plastic that is virtually unbreakable, making it a much safer alternative to glass.

It is also a good insulator, which means it can help reduce heat loss and lower energy costs. Poly car bonate is also much more effective than glass in sound insulation, making it a popular choice for noise control in buildings. Lastly, it is impact resistant and can withstand a wide range of temperatures, making it an excellent choice for use in harsh environments.

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use+the+information+below+for+the+following+problem+investment+beta+analyst's+estimated+return+stock+x+2.3+15.5%+stock+y+1.2+13.6%+market+portfolio+1.0+11.5%+risk-free+rate+4.0%

Answers

The estimated return for Stock X is 21.25% and for Stock Y is 13.0% based on the given information.

To calculate the expected return of each stock, we can use the capital asset pricing model (CAPM), which relates the expected return of an investment to its beta and the market's expected return. The formula is:

Expected Return = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate)

For Stock X:

Expected Return for Stock X = 4.0% + 2.3 × (11.5% - 4.0%)

Expected Return for Stock X = 4.0% + 2.3 × 7.5%

Expected Return for Stock X = 4.0% + 17.25%

Expected Return for Stock X = 21.25%

For Stock Y:

Expected Return for Stock Y = 4.0% + 1.2 × (11.5% - 4.0%)

Expected Return for Stock Y = 4.0% + 1.2 × 7.5%

Expected Return for Stock Y = 4.0% + 9.0%

Expected Return for Stock Y = 13.0%

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what concept of scarcity refers to what idea​

what concept of scarcity refers to what idea

Answers

Answer:

D

Explanation:

people have limited resources to fufill their unlimited wants.

this one just sounded right to me.

sorry if this is wrong

Perfectly competitive markets are economically efficient in the long run, partly because Select one: a. entry barriers enable such firms to invest in high-return capital projects. b. firms in these industries produce an output where the price is equal to the minimum average variable cost. c. the price consumers are willing to pay for the last unit just equals the cost of having to produce that additional unit. d. entry and exit guarantees a positive long-run profit above average total cost for each firm.

Answers

Answer:

C

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero. Also, firms produce at the minimum of the average total cost curve. price equal marginal cost and marginal revenue

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

p

when money is used for exchanges, what happens to transaction costs?

Answers

When money is used for exchanges, transaction costs are typically reduced. This is because using money as a medium of exchange eliminates the need for bartering, which can be time-consuming and expensive.

Additionally, using money allows for greater specialization and economies of scale, which can also lower transaction costs. However, there are still some transaction costs associated with using money, such as fees for using payment systems or currency exchange fees when dealing with foreign currencies.
Hence,  When money is used for exchanges, transaction costs typically decrease. This is because money serves as a medium of exchange, allowing for easier and more efficient trade compared to bartering. As a result, the time and effort required to complete transactions are reduced, leading to lower transaction costs.

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1. You deposit $5000 each year into an account earning 5% interest compounded annually. How much will you have in the account in 35 years?
$________
2. You deposit $400 each month into an account earning 7% interest compounded monthly.
a) How much will you have in the account in 20 years?
$______
b) How much total money will you put into the account?
$___________
c) How much total interest will you earn?
$_______________
3. You have $400,000 saved for retirement. Your account earns 7% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?
$___________
PLEASE HELP ME IM STRUGGLING IN THIS PLEASE I DON'T WANT TO FAIL. LAST PERSON ANSWERED WRONG PLEASE HELPPP THANK YOU

Answers

1. You deposit $5000 each year into an account earning 5% interest compounded annually. How much will you have in the account in 35 years?

The formula for calculating the future value of an annuity is:FV = PMT × (((1 + r)n - 1) / r), where:FV = Future Value of the AnnuityPMT = Amount Deposited each Yearr = Interest Rate Per Periodn = Number of PeriodsFor the given problem, the amount deposited each year (PMT) is $5000, the interest rate (r) is 5% and the number of periods (n) is 35.

We need to calculate the future value (FV) of the annuity.So, we get:FV = $5000 × (((1 + 0.05)35 - 1) / 0.05)FV = $5000 × (((3.386) / 0.05))FV = $5000 × 67.72FV = $338,581.74Therefore, the amount in the account after 35 years will be $338,581.74. 2.

You have $400,000 saved for retirement. Your account earns 7% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?To find out the amount you can withdraw each month, we can use the formula for Present Value of an Annuity, which is given as:PV = PMT x ((1 - (1 + r)-n) / r), where:PV = Present Value of Annuity

PMT = Amount of each paymentr = Interest rate per periodn = Number of periodsWe are given that the amount in the account is $400,000, the interest rate (r) is 7% and the number of periods (n) is 25 x 12 = 300 months. We need to calculate the amount that can be withdrawn each month (PMT).

So, we get:$400,000 = PMT x ((1 - (1 + 0.07)-300) / 0.07)Simplifying this equation gives:PMT = $400,000 / ((1 - (1 + 0.07)-300) / 0.07)PMT = $2,864.49Therefore, you will be able to withdraw $2,864.49 each month for 25 years.

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A bank has an average asset duration of 5 years and an average liability duration of 9 years. This bank has total assets of $1,000 million and total liabilities of $850 million. Currently, market interest rates are 5 percent. If interest rates rise by 2 percent (to 7 percent), what is this bank's change in net worth?a. Net worth will decrease by $50.47 million.b. Net worth will increase by $50.47 million.c. Net worth will decrease by $240.95 million.d. Net worth will increase by $240.95 million.e. Net worth will not change at all

Answers

To calculate the change in net worth for the bank, we need to consider the impact of the interest rate change on the value of assets and liabilities.

Given:

Average Asset Duration = 5 years

Average Liability Duration = 9 years

Total Assets = $1,000 million

Total Liabilities = $850 million

Current Market Interest Rate = 5%

Interest Rate Increase = 2% (to 7%)

First, we need to calculate the change in the value of assets and liabilities using the concept of duration:

Change in Asset Value = Average Asset Duration * Total Assets * Interest Rate Increase

Change in Asset Value = 5 * $1,000 million * 0.02

Change in Asset Value = $100 million

Change in Liability Value = Average Liability Duration * Total Liabilities * Interest Rate Increase

Change in Liability Value = 9 * $850 million * 0.02

Change in Liability Value = $153 million

Next, we calculate the change in net worth:

Change in Net Worth = Change in Asset Value - Change in Liability Value

Change in Net Worth = $100 million - $153 million

Change in Net Worth = -$53 million

Therefore, the change in net worth for the bank, due to the 2% increase in interest rates, is a decrease of $53 million.

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Which of the following is NOT an example of a metric
?

Answers

Answer:

can you tell me what the choices are and I'll answer in the comments

Explanation:

floor gang aooh sub to pewdiepie

Febulous fern sold inventory for ​25000 , terms ​3/10, ​n/30. Cost of goods sold was 15000. How much sales revenue will fabulous fern report from the​ sale?

Answers

Fabulous Fern will report $24,250 in sales revenue from this sale.

Calculate the sales revenue of above example.

The following is the net amount that Fabulous Fern will receive from the sale: Gross Sales - Sales Discount = Net Sales

where Gross Sales = Inventory Selling Price and Sales Discount = Allowable Discount

Given the terms (3/10, n/30), this means that if the buyer pays within 10 days, they will receive a 3% discount. The entire amount is due within 30 days.

As a result, if the buyer takes advantage of the discount and pays within 10 days, they will only be required to pay 97% of the selling price, which is:

97% x $25,000 = $24,250

If the buyer does not take advantage of the discount and pays within 30 days, they will be charged the full $25,000 selling price.

We can assume the worst-case scenario and calculate net sales based on the full selling price because we don't know when the buyer will pay:

Gross Sales - Sales Discount = Net Sales

Net Sales = $25,000 - ($25,000 multiplied by 3%).

$25,000 - $750 = Net Sales

Total Revenue = $24,250

As a result, Fabulous Fern will report $24,250 in sales revenue from this sale.

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HELP
When a company/economy is making money,
how does the demand curve shift?
B. down
A. up
D. to the left
C. to the right

HELP When a company/economy is making money,how does the demand curve shift?B. downA. upD. to the leftC.

Answers

Answer:

It's A, The demand curve shifts up

Explanation:

It goes up

Differentiate between the terms Effectiveness & Efficiency

Answers

Answer:

Efficiency is defined as the ability to accomplish something with the least amount of wasted time, money, and effort or competency in performance. Effectiveness is defined as the degree to which something is successful in producing a desired result; success.

a firm can establish a sustainable competitive advantage over competitors if: group of answer choices the firm focuses solely on productivity rather than quality and service. there is a high potential for competing firms to create or buy the firm's information technology. the firm uses information technology to continuously improve the core functions of its business. the firm has access to the same information technology as its competitors.

Answers

A firm can establish a sustainable competitive advantage over competitors if c) the firm uses information technology to continuously improve the core functions of its business.

When one company continually outperforms others in the same industry, that company has a competitive edge. If a company's earnings exceed those of its competitors, it is said to be outperforming them. When a competitive advantage lasts for a longer period of time, it is regarded to be stronger.

If maintaining a bigger profit margin than other companies in the same industry is required for long-term competitive advantage, how does a corporation establish a strategy to obtain and maintain competitive advantage?

The two major components of profit are that customers value and will pay for the goods and services, and that a corporation can keep production costs connected to goods and services low, resulting in a bigger profit.

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Correct question:

A firm can establish a sustainable competitive advantage over competitors if:

a) the firm focuses solely on productivity rather than quality and service.

b) there is a high potential for competing firms to create or buy the firm's information technology.

c) the firm uses information technology to continuously improve the core functions of its business.

d) the firm has access to the same information technology as its competitors.

pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 15 % 32 % Bond fund (B) 9 % 23 % The correlation between the fund returns is 0.15. Suppose now that your portfolio must yield an expected return of 12% and be efficient, that is, on the best feasible CAL. a. What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

The standard deviation of the portfolio is 7.09%.

What is the proportion of stock in minimum risky portfolio?

= [(0.23)² - (0.32*0.23*0.15)] / [(0.32)² + (0.23)² - (2*0.32*0.23*0.15)]

= 0.31421708452

= 31.42%

What is proportion of bond fund in minimum risky portfolio?

= 1 - 0.31421708452

= 0.68578291548

= 68.58%

What is the expected return of minimum risky portfolio?

= 0.3142*15% + 0.6858*9%

= 0.04713 + 0.061722

= 0.108852

What is the standard deviation of your portfolio?

= ((0.6858)² * (0.23)² * (0.3142)² * (0.33)²) + ((2 * 0.6858 * 0.3142 * 0.32 * 0.23 *  0.15))^0.5

= (0.00026747972 + 0.00475776218)^0.5

= 0.0050252419^0.5

= 0.0708889406

= 7.09%

Therefore, the standard deviation of the portfolio is 7.09%.

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