Generally, as income rises, the average propensity to consume Group of answer choices stabilizes decreases increases becomes erratic drops to zero

Q: LO3 Discuss the discounted payback rule and some of its shortcomings. LO4 Explain accounting rates…

A: The payback period is the amount of time it takes for the investment's benefit to recoup its cost,…

Q: For a consumer, utility maximization occurs at O the intersection of two budget lines O the…

A: a point of tangency between the budget line & an indifference curve

Q: Explain negative inflation premium.

A: Negative inflation premium, also known as deflationary premium, refers to a situation where the…

Q: Another of Matilda’s colleagues is looking at the yield curve and asks for an explanation as to why…

A: Biased expectation theory is defined as the theory of term structure of the rate of interest. In the…

Q: e is said to be a normal good if indifference e indifference curves associated with chang on-labor…

A: Leisure refers to the time when an employee is not working can spend the desired time in their own…

Q: If the ordering cost triples in an EOQ model, while the remaining values stay constant, how will the…

A: Economic Order Quantity is a model which aims to minimize the total inventory cost including the…

Q: 1. Fixed cost per unit     Remains constant     Increases when output increases     Decreases…

A: Cost: It refers to the aggregated amount that is spent on manufacturing a product.

Q: With a decrease in time preference, the supply of loanable funds will increase.   Select one: True…

A: Loanable funds includes all forms of credit, such as loans, bonds, or savings deposits. There is an…

Q: Consider the graph below – representing the effect monthly rent and expected treasury rate on the…

A: Range of IRR is very large for monthly rent and therefore variability or the effect of rent is also…

Q: (Profit) What is the impact of decreasing/increasing radius kettle (m) with regarding to heat time?…

A: Just as radius kettle (m) and heat time are correlated so is profits being earned or generated by a…

Q: According to the pure expectations theory, what would happen if long-term rateswere not an average…

A: Expectation theory: The theory states that the future short term rate will be based on current long…

Q: why buying on margin is less riskier than short selling?

A: Trading on margin is a process of borrowing funds from a brokerage firm in order to execute trade…

Q: the natural

A: The Phillips curve displays the inverse relationship between unemployment and inflation: as…

Q: What does it mean to use the DuPont model to help explain a decrease in ROI?

A: Introduction: DuPont analysis is done to find out the various drivers that account for the return on…

Q: What happens to average fixed cost as more products are made? a. Remains the same b. Increases c.…

A: Total fixed cost remains same at all level of output.

Q: 1. Subsidy on inputs  Identify whether (Select one choice per number) (A) increase inflation (B)…

A: Tax means the mandatory payment made by assesse to the government without expecting anything…

Q: The discount rate is the combination of what two types of discounting?   a. exponential and linear…

A: Discount rates are used for discounting the future cash flows. It helps in determining the time…

Q: Harof activity increases, total variable costs a. decrease. b. remain the same. c. Increases in…

A: Variable costs: Variable costs means costs which changes with the level of output. Variable cost per…

Q: market value

A: Market value refers to the estimated worth of asset, which is based on the willingness of the buyer…

Q: A strong economy leads to Group of answer choices lower productivity higher employment lower…

A: Strong economy means high growth in the economic activity. Economic activity will be improved when…

Q: Why is the calculation to determine the target profit considered a variation of the break even…

A: Target Profit:   It is the desired amount of profit that a company expects to achieve by the end of…

Q: In the Vasicek Model , the short term rate cannot go negative . True False

A: The Vasicek Model is a popular interest rate model used to price financial instruments and to…

Q: Operating leverage measures the: 1. Change in profit when sales changes 2. change in contrribution…

A: Leverage is another way to refer to debt. In business, Leverage often refers to borrowing funds to…

Q: 3. If inventory turnover decreases, what will happen to the cash conversion cycle? Assume other…

A: Inventory Turnover ratio shows how many times inventory is sold in any particular period. Cash…

Q: Present the internal rate of return criterion and its strengths and weaknesses.

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: When the activity level declines within the relevant range, what should happen with respect to the…

A: The company running its operations incurs both variable costs and also fixed costs. The variable…

Q: what is that portion of income which is not spent on consumption   A leakage An injection…

A: Introduction:- Income means sum of money received from earned from doing work or received from…

Q: 1- In the monetary intertemporal model seen in class, explain and illustrate graphically how…

A: The objective of the question is to understand the impact of changes in Total Factor Productivity (z…

Q: Yes, because operating income increases.

A: It is pertinent to note that higher the contribution higher the operating income since fixed cost…

Q: In the periods of inflation, the historical cost model .can communicate useful and correct…

A: Inflation is the increase in the general prices of goods and services that leads to a decrease in…

Q: Using the AD-AS model, demonstrate the potential causes of inflation

A: AD/ AS curve is demand and supply curve which shows the aggregate demand v/s aggregates supply in…

Q: Is it true that All else being equal, an increase in profit margin raise ROE?

A: According to DUPONT Analysis, ROE is the function of three ratios. ROE =profit margin × asset…

Q: When is the stock value high in absorption costing than marginal costing? a. None of the options b.…

A: Actually b and C both options are correct.  Because, stock under absorption costing always higher…

Q: Can one generate regualar income via trading Please explain one of the price action startagy that…

A: Financial markets are the markets where the trading of financial assets, securities, and instruments…