borrowed. Our economy has businesses that are started by investors that have capitol to lend for a cost. Businesses need to lease buildings‚ buy products to have on hand‚ and pay staff to operate the business. Small businesses have more short-term interest rates that are more appealing to investors to stand behind with less risk. It depends on how the economy views the uncertainties that will determine how they will react to business plans that are presented to them to invest in. The interest rate this
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ECO/372 Final Examination Study Guide This study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions‚ which are related to each week’s objectives. Highlight the correct response‚ and then refer to the answer key at the end of this Study Guide to check your answers. Use each week’s questions as a self-test at the start of a new week to reflect on the previous week’s concepts. When you come across concepts that you are unfamiliar
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Summary ECO/372: Macroeconomics July 8‚ 2013 Dr. Joe Timmerman Week 4 Reflection Summary In week 4‚ we discussed the problems with the fiscal policy and how we felt about the limits of the fiscal policy. When spending is greater than income there is a deficit; a deficit is a shortfall of revenue payments. Some of the team struggles with understanding when the economy is in a recession‚ why a deficit is good for the economy. As a team we also reviewed the total debt in the U.S. and were all applauded
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Week Two Individual Exercises 14-1. What are financial markets? What function do they perform? How would an economy be worse off without them? Financial markets are the instutions and procedures that enable transactions in all types of financial securities. The function of financial markets is to distribute the savings supply in an economyto those who demand the savings. Economic wealth would decrease and capital formation would be less if our economy didn’t have financial markets. 14-3
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ECO/372 Week 2 Knowledge Check – Quiz Quiz Questions with 100% Correct Answers: 1. 2. 3. 4. 5. 6. 7. 8. The globalized AS/AD curve is the standard AS/AD model with an added According to Say’s Law‚ people A shift in the long-run aggregate supply curve will change The hypothesis about the macroeconomy that sees the recent problems with the U.S. economy directly related to the structural problems caused by globalization is referred to as the __________ hypothesis. The central difference between the
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the economic system of the United States‚ including the significance of key economic indicators (especially GDP)‚ productivity‚ and the business cycle. 6 Contrast fiscal policy and monetary policy‚ and explain how each affects the economy. Explain what capitalism is and how free markets work. Compare socialism and communism. Analyze the trend toward mixed economies. 28 nic2459x_ch02_028-057.indd 28 9/8/11 9:24 AM Confirming Pages w w w. j. b rad fo rd-de l o n g . n e t/ ec o no m i s t s /k
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What happens when there is a surplus of imports brought into the U.S.? When the dollar value of goods and services imported into the United States exceeds the dollar value of goods and services exported to other countries from the U.S.‚ it creates what is called a surplus. When there is a surplus of imports that are brought into the United States‚ a deficit is created from the trade balance that occurs. Having a surplus of desired imports can create a lower price for the U.S. consumer and have a
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Responsible Accounting 1. Identify at least two behavioral that could arise There are two potential behavior advantages if manager accepts and participate in the responsibility accounting system and participatory budgeting system. Responsibility accounting is used to measure the performance of people and department to foster goal congruence whereas‚ participatory budgeting system is a budgeting process under which those people impacted by a budget are actively involved in the budget creation process
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Understanding business The business related laws in the United States intend to foster free‚ fair‚ balanced and effective business practices. Laws protecting consumers in the United States disallow unfair‚ deceptive and anti-competitive business practices. Despite significant legislative differences from one state to another‚ a major premise is that deceptive and unfair business practices are unethical and inappropriate (Cartewr‚ 2009). These laws constitute critical legal underpinnings for ethical
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has the ability and knowledge‚ it is possible to manipulate financial information of a corporation‚ this could lead to temptation. Mere greed is another motivator in unethical behavior. In any case‚ a person‚ or persons‚ convinces themselves that what they are doing is okay and they deserve it.
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