"The Federal Reserve raises the reserve requirement from 7 percent to 8 percent. Consequently banks must set aside more money and consequently have less money to lend. The result is that the banks will raise the interest rate they charge to their customers. These conditions make it harder and more expensive for people and businesses to borrow money. Because they can’t borrow as much, they can’t spend as much. If people aren’t spending as much, prices don’t go up. With this action, the Fed has lessened the likelihood of ________."

Answers

Answer 1

Answer:

Answer: a. Inflation

Explanation:

Inflation refers to the general rise in prices of items in an economy in a certain period of time. Inflation essentially erodes the value of the domestic currency of the economy in question.

Central Banks like the Fed can use Monetary policy to influence inflation. In this case they reduced the amount of money in the economy by reducing bank loans. This will ensure that people cannot spend too much which would increase demand and therefore increase prices.

By doing this, they have limited the likelihood of inflation.

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True or false. The primary functions of price in a free market are to inform, direct, and motivate consumers and firms.

Signature Appliance Group decided to remove the grill unit from the ovens it sells in South America after customers complained they preferred to grill outside and would never use this feature. Which environmental force caused the company to change its product

Answers

Answer:

Signature Appliance Group

The environmental force that caused the company to change its product features is:

the Social and Cultural Environment.

Explanation:

The Social and Cultural Environment refers to the changing needs of customers in South America as a result of the values, attitudes, and preferred styles of consumers. These are always in a state of flux every year. Since customers preferred to grill outside rather than inside their kitchens, adding the grill unit in the ovens that the company sells in South America will not enable customers to choose its ovens over competitors'. To respond to the stated needs of its customers, the grill must be removed, thereby reducing the cost of the ovens.

Final answer:

The change made by Signature Appliance Group in removing the grill unit from their ovens sold in South America was influenced by the consumer environment force. This change was made in response to consumer preferences for outdoor grilling, thus altering the physical aspects of their product.

Explanation:

In the context of the scenario provided, it was the consumer environment force that influenced Signature Appliance Group to remove the grill unit from its ovens sold in South America. Consumer environment force pertains to changes in consumer preferences, habits, or buying behaviors. The company observed that its customers in South America preferred outdoor grilling and as a result, they opted not to use the grilling feature of the oven. Hence, the company decided to alter the physical aspects of its product by removing the grill from the ovens. Such alteration represents a response to consumer demands, thereby aiming to improve customer satisfaction and product relevance. Expounding on physical aspects, these are tangible characteristics or features of a product that cater to consumer needs and preferences, as shown in the example of nonstick surface, unbreakable bottle, and other such elements.

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All three of the $5000 billion GDP figures (Production, Income and Spending) are in ____________ dollars.

Answers

Answer: D inflation adjusted, real

Explanation:

The GDP calculation acquired in the flow chart of $5,000 billion were all done after adjusting for inflation which means that they were in real dollars.

Inflation adjusted GDP enables more effective comparison between different periods as inflation tends to inflate the prices of goods and services and can make one think that the economy has grown more than it actually has.

When the value of GDP is inflation adjusted, it can then be seen just how much the economy improved or shrank.

Enterprise zones are: A. government-owned properties that are available for entrepreneurial ventures at a reduced cost.B. similar to incubator facilities but strictly run by city and state governments.C. blighted areas that contain toxic materials making them unsuitable for business operations.D. specific locations across the U.S. where entrepreneurs can set up shop and receive tax breaks for operating in these areas.

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Answer: Option D

Explanation: Enterprise zones are established by the government with the objective of development and economic growth in the local neighborhood.

The investors are attracted to make their business centers or production units in such areas by giving them incentives such as tax exemptions or other such benefits.

These are made usually in under developed areas. In countries like China and India, these areas are called special economic zones.

45) According to the text, the most logical budget-setting method in advertising is the method A) adaptive-control B) objective-and-task C) competitive-parity D) affordable E) percentage-of-sales 46) Which of the following is a disadvantage of using online, mobile, and social media for advertising? A) The costs are high B) Audience selectivity is low. C) The audience controls ad exposure. D) The interactive capabilities are low, I E) There is little scope for personalization

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B) Objectives and Task Method As a result, the "objectives and task" method are regarded as one of the most logical budgeting strategies for advertising.

The objectives and goals of marketing and advertising are established using this strategy.

How does the objective task method work?

The objective task method, which is also known as the "objective and task" method, is a system in which a business decides how much money to put into its marketing budget based on specific goals rather than just on sales revenues or projections.

The competitive paritymethod works on the premise that competing businesses have comparable marketing objectives and rationally implement them. Therefore, if a competitor spends approximately 5% of net sales on advertising, the company will match that competitor's advertising budget.

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In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 50 persons working an average of 2,500 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2017 Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment 494, 000 Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs 50,000 Total estimated overhead costs $1,500, 000 $ 333, 200 128,000 154, 000 102,000 82, 000 74,000 82,800 At the end of 2017, records show the company incurred $1,600,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $618,000, Job 202, $577,000; Job 203, $312,000; Job 204, $730,000, and Job 205, $328,000. In addition, Job 206 is in process at the end of 2017 and had been charged $31,000 for direct labor. No jobs were in process at the end of 2016. The company's predetermined overhead rate is based on direct labor cost

Answers

Answer: The answer is ($76,280,000)

Explanation:

POAR = Budgeted Overhead / Budgeted labour cost

Total direct labour cost = hours worked × wage rate per hour

Hours worked = 2,500 hours , wage rate per hour = $20

= 2,500 × 20

= $50,000

Budgeted Overhead = $1,500,000, Budgeted labour cost = $50,000

= 1,500,000 / 50,000

= 30 × actual activity

Actual activity direct labour = 618,000 +577,000 + 310,000 + 730,000 + 328,000 + 31,000 = 2,596,000

Overhead absorbed = 30 × 2,596,000

= 77,880,000

Actual Overhead = 1,600,000

Actual Overhead - Overhead absorbed

= 1,600,000 - 77,880,000

= ($76,280,000)

Since the overhead absorbed is greater than actual overhead, this is known as over absorption.

The adjusted trial balance of Warbocks Corporation at December 31, 2017 includes the following accounts: Retained Earnings $12,600; Dividends $5,000; Service Revenue $30,000; Salaries and Wages Expense $15,000; Insurance Expense $2,000; Rent Expense $4,500; Supplies Expense $500; and Depreciation Expense $1,000. Prepare a retained earnings statement for the year.