Yes, the method of deficit financing by issuing common stocks is accepted by the Islamic framework.
Deficit financing by issuing common stocks can be considered acceptable within the Islamic framework, provided that it adheres to the principles and guidelines set forth by Islamic finance. Here is a step-by-step explanation:
In order for this method to be accepted by the Islamic framework, the company issuing the common stocks must be engaged in a halal (permissible) business activity and not involved in any haram (prohibited) activities such as gambling, alcohol, or dealing with interest-based loans.
The company must also ensure that its financial practices are in line with the principles of profit and risk sharing, which is an essential aspect of Islamic finance. This means that the investors share both the profits and losses of the company based on their proportional ownership.
In summary, deficit financing by issuing common stocks can be accepted by the Islamic framework as long as it adheres to the principles of Sharia law, including engaging in halal business activities and following profit and risk-sharing guidelines.
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Why doesn't the Lorax do anything to stop the Once-ler (hint: he's a symbol)? What does this tell us
about the future of business decisions?
Answer:
The Lorax is a symbol of environmental consciousness and his inaction in stopping the Once-ler represents the failure of society to prioritize the environment over economic growth. This tells us that if we do not take steps to balance economic growth and environmental sustainability, it could lead to long-term negative consequences for the environment and future business decisions.
Explanation:
The Lorax is a children's book by Dr. Seuss that explores the environmental impact of economic growth and consumerism. In the story, the Once-ler begins cutting down Truffula trees to make a product called Thneeds, despite the warnings of the Lorax, who speaks for the trees and the animals that depend on them.
The Lorax represents environmental consciousness and his inaction in stopping the Once-ler represents the failure of society to prioritize the environment over economic growth. The Once-ler's actions are driven by his desire for profit, and he continues to cut down trees despite the negative impact it has on the environment. The Lorax, as a symbol of environmental awareness, is unable to stop the Once-ler from destroying the ecosystem, which ultimately leads to the disappearance of the Truffula trees and the animals that depend on them.
This lack of balance between economic growth and environmental sustainability is a lesson that has implications for future business decisions. If businesses prioritize profit over environmental sustainability, it could lead to long-term negative consequences for the environment, which could ultimately harm the economic viability of those businesses. It is important for businesses to consider the environmental impact of their decisions and take steps to balance economic growth and sustainability for the long-term health of the environment and economy.
What can a boosted post help an advertiser achieve?
A boosted post helps an adviser to connect with the audience and gain trust.
Boosted post is a kind of post that is used on social media platforms in order to enhance the page of the platform and to attract audience to the page. Boosted post can help better communication with the audience along with the increase in a greater number of messages, calls and texts. Boosted posts help for better advertisements of the product. For example, A Chocolate brand may use Boosted posts to gain audience as well as consumers. Boosted posts helps an adviser to be discovered among people, to establish a benchmark in the market and to gain more and more customers. It's a kind of marketing strategy used for publicity purpose.
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true or false: media planners define one or more target segments that are likely to purchase their product.
True. Media planners define target segments because they aim to reach consumers who are most likely to be interested in their product and buy it. By identifying and targeting specific segments of the population, media planners can create more effective and efficient advertising campaigns that will have a greater impact and produce better results.
Consumers are individuals or households that buy goods and services for personal use. They are the end users of products and services, and play a critical role in the functioning of the economy by driving demand and contributing to economic growth. Consumers make purchasing decisions based on a variety of factors, including their income, preferences, and needs, and are important considerations for businesses when they define their target market and marketing strategy.
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Gabriel is a college athlete who requires 2,900 kcal a day to support his total energy needs. However, he only manages to consume approximately 1,800 kcal a day. Which of the four characteristics of a healthful diet is Gabriel not meeting
Gabriel is not meeting the characteristic of "Adequacy" in a healthful diet.
A healthful diet is characterized by four key principles: adequacy, balance, moderation, and variety. Adequacy refers to consuming an appropriate amount of essential nutrients to meet the body's nutritional needs.
In Gabriel's case, he requires 2,900 kcal per day to support his total energy needs as a college athlete. However, he only manages to consume approximately 1,800 kcal a day, which is significantly lower than his required energy intake. This indicates that he is not meeting the principle of adequacy in his diet.
Adequacy is not only about total calorie intake but also about consuming a balanced distribution of macronutrients (carbohydrates, proteins, and fats) and essential micronutrients (vitamins and minerals) that the body needs for proper functioning and optimal health. By not meeting his energy needs, Gabriel may not be providing his body with enough fuel and nutrients to support his physical activity, recovery, and overall well-being.
It is important for Gabriel to address this imbalance by ensuring that his daily caloric intake is closer to his energy requirements. This can be achieved by incorporating nutrient-dense foods such as whole grains, lean proteins, fruits, vegetables, and healthy fats into his meals and snacks. Consulting a registered dietitian or nutritionist can also be beneficial in developing a personalized meal plan that meets Gabriel's specific needs as an athlete.
In summary, Gabriel is not meeting the characteristic of adequacy in his diet as he is not consuming enough calories to support his energy needs as a college athlete. It is essential for him to make adjustments to his dietary intake to ensure that he meets his nutritional requirements for optimal performance and overall health.
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Your marketing department is currently researching the age, race, and household structures of your target market. Which environment is being researched
Provide your own SWOT analysis on debt financing as a mode to
finance the operations of a business.
SWOT analysis on debt financing as a mode to finance the operations of a business can be outlined as follows: Strengths of Debt Financing- It helps the business owner maintain complete ownership and control over their business operations.- Interest paid on loans is tax-deductible- The business can leverage the money for growth and expansion purposes.- Debt financing offers a fixed rate of interest which makes it easier to budget for payments.
Weaknesses of Debt Financing- It can be hard to obtain loan approval and can take a long time- The cost of borrowing can be high, making it difficult to pay back the loan- There are often covenants and restrictions placed on the borrower by the lender- It creates additional financial obligations and commitments which can create a burden for the business.
Opportunities of Debt Financing- Debt financing offers the opportunity to finance the expansion of the business operations.- By making the payments on time, it can also be an opportunity to improve the credit score and future borrowing ability.- Debt financing can help improve a company’s balance sheet and provide a cash buffer for emergencies.
Threats of Debt Financing- The interest rates and fees are dependent on the creditworthiness of the borrower.- If the business is unable to make payments, the lender may seize the assets to cover the costs- The business may also be in danger of insolvency if it overextends itself through too much borrowing.- A decline in the market or the economy may also affect the business's ability to make payments.
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During 2021, Crane Corp. started a construction job with a total contract price of $15000000. The job was completed on December 15, 2022. Additional data are as follows:
2021 2022
Actual costs incurred during the year $6300000 $7350000
Estimated remaining costs 6300000 0
Billed to customer 5400000 11400000
Received from customer 4200000 12000000
Under the completed-contract method, what amount should Crane recognize as gross profit for 2022?
$1350000
$450000
$675000
$2250000
The amount that Crane should recognize as gross profit for 2022 under the completed-contract method is $675,000. Under the completed-contract method, revenue and expenses are recognized.
The contract is completed. The gross profit is calculated as the difference between the total contract price and the total costs incurred. In this case, the total contract price is $15,000,000, and the total costs incurred by the end of 2022 are $6,300,000 (actual costs incurred in 2021) + $7,350,000 (actual costs incurred in 2022) = $13,650,000. To calculate the gross profit for 2022, we subtract the costs incurred in 2022 from the total contract price: $15,000,000 - $13,650,000 = $1,350,000 Therefore, the amount that Crane should recognize as gross profit for 2022 is $675,000 ($1,350,000/2), as it represents 50% of the gross profit for the completed contract. It's important to note that under the completed-contract method, revenue and expenses are not recognized until the contract is completed and the gross profit is only recognized in the year of completion.
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3 Prepare an income statement for Jones Co. for the year ending December 31, 2018, using the following data.
Cash 8,000
Miscellaneous Expense 100
Wages Expense 150
Rent Expense 200
Fees Earned 11,000
Office Expense 200
Accounts Payable 3,000
The net income for Jones Co in 2018 equals $18,350.
What is income statement?The financial statement shows a company's revenues, expenses and profitability over a period of time. Its computes the revenue from selling products or services and expenses to generate the revenue and manage your business.
The income statement for the year ending December 31, 2018 is prepared as follows:
Income Statement
Revenue
Cash 8,000
Fees Earned 11,000
19,000
Expenses
Miscellaneous Expense 100
Wages Expense 150
Rent Expense 200
Office Expense 200 650
Net Income $18,350
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How lionbridge plans and creates optimized articles for a global multilingual website seo copywriting for multiple markets for an international website.
For international, multilingual websites that need for more than just translation, Lionbridge offers three tiers of digital content optimization services. When you have the right service level, you can efficiently manage your resources and deliver your stuff.
Lionbridge provides its clients with a Standard Information Optimization option that enables them to translate content into several multilingual languages in order to rank well when people conduct generic internet searches pertaining to your product.
By conducting in-market keyword research and using the results to update the translated text, Lionbridge enhances their client's search engine results. It updates titles, descriptions, and headers. Incorporating relevant multilingual keywords in the on-page text also requires a few minor tweaks to your content.
The future of localization from Lionbridge, including how important language is to driving global expansion and the digital revolution. With Lionbridge's knowledge of localization, content production, and search, you can increase sales in every market and in any language.
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Money you pay up front to reduce the amount you will owe is called a
A. fixed loan
B. late payment
C. down payment
D. short-term loan
Answer:
down payment
Explanation:
A down payment is money paid upfront in a financial transaction, such as the purchase of a home or car. Buyers often take out loans to finance the remainder of the purchase price.
Answer:
down payment
Explanation:
An income statement reports information over a period of time, indicating the financial progress of a business in earning a net income or net loss. (PG 182)
Answer:
True
Explanation:
An income statement is among the three important financial statements that a business prepares at the end of every financial year. It is divided into three main sections of revenues, expenses, and income.
The revenue section lists all sources of revenues and any adjustments to obtain the net revenue. The expenses section shows all business expenses and their total. The income section is the difference between revenue and expenses. A positive income means the made profits, while a negative income indicates losses.
What responsibilities does a parent have in an American school system?
Over the past 4 years an investment returned 18%, −9%, −12%, and 15%. What is the standard deviation of returns?
The standard deviation of the given returns is approximately 13.3%.
To calculate the standard deviation of returns, you can follow these steps:
1. Calculate the average return (also known as the mean) by summing up all the returns and dividing by the number of returns:
Average Return = (18% + (-9%) + (-12%) + 15%) / 4 = 3%
2. Calculate the deviation of each return from the average return. This is done by subtracting the average return from each individual return:
Deviation = Return - Average Return
For the given returns:
Deviation1 = 18% - 3% = 15%
Deviation2 = -9% - 3% = -12%
Deviation3 = -12% - 3% = -15%
Deviation4 = 15% - 3% = 12%
3. Square each deviation:
Squared Deviation = Deviation^2
Squared Deviation1 = 15%^2 = 225%
Squared Deviation2 = (-12%)^2 = 144%
Squared Deviation3 = (-15%)^2 = 225%
Squared Deviation4 = 12%^2 = 144%
4. Calculate the average of the squared deviations (also known as the variance) by summing up all the squared deviations and dividing by the number of returns:
Variance = (225% + 144% + 225% + 144%) / 4 = 177%
5. Finally, calculate the standard deviation by taking the square root of the variance:
Standard Deviation = √(Variance) = √(177%) ≈ 13.3%
Therefore, the standard deviation of the given returns is approximately 13.3%.
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Colorado Corporation was organized at the beginning of the year, with the investment of $250,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $210,000 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,000 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $93,970 from its customers. It paid $65,600 for inventory, $20,400 in salaries and wages, and another $3,100 in taxes. Colorado paid $5,600 in cash dividends.
Required:
1. Prepare a statement of cash flows for the year.
2. What does this statement tell you that an income statement does not?
Based on the given figures for Colorado Corporation, the statement of cash flows for the year would be:
Cash flow for Operating Activities
Cash from customers 93,970
Less:
Cash for inventory 65,600
Salaries and Wages 20,400
Taxes 3,100 ( 89,100)
Net Cash from Operating Activities 4,870
Cash flow from Investing Activities
Purchase of office building (210,000)
Net cash used for Investing Activities (210,000)
Cash flow from Financing Activities
Issuance of Common stock 250,000
Note Payable 60,000
Dividend payment (5,600)
Net cash from Financing Activities 304,400
Net increase in cash 99,270
Opening cash balance 0
Closing cash balance 99,270
What does the statement of cash flows show?It shows transactions that involve actual cash being spent or gained by the company.
This allows Colorado Corporation to know the actual amount of cash it has for operations.
An Income statement on the other hand, shows the transactions that a business gets involved in regardless of whether they involve actual cash or not. This means that it cannot show the actual amount of cash that a business has.
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suppose that nominal gdp is $1000 in 2006 and nominal gdp is $1500 in 2007. if the overall price level between 2006 and 2007, we could say that real gdp . a increased by 50%; increased. b increased by less than 50%; decreased. c increased by 50%; stayed constant. d increased by more than 50%; increased. e increased by more than 50%; stayed constant.
If the overall price level increased by 50% between 2006 and 2007, we could say that real GDP stayed constant. The correct option is c.
What is GDP?GDP is a monetary measure of the market value of all the final goods and services produced and sold in a specific period by countries. Due to its complex and subjective nature, this measure is often revised before being considered a reliable indicator. GDP per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries; therefore, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between nations.
While nominal GDP is more useful comparing national economies on the international market.
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The ________ layer of the skin contains bundles of collagen fibers and elastin, and is responsible for the mechanical strength and flexibility of the skin.
The dermis layer of the skin contains bundles of collagen fibers and elastin, which provide mechanical strength and flexibility to the skin.
The dermis is the middle layer of the skin, located between the epidermis (outer layer) and the subcutaneous tissue (innermost layer). It is primarily composed of connective tissue and contains various structures such as blood vessels, nerves, hair follicles, and sweat glands.
One of the main functions of the dermis is to provide support and strength to the skin. It contains bundles of collagen fibers, which are strong and flexible, and elastin fibers, which allow the skin to stretch and recoil. These fibers give the skin its mechanical properties, allowing it to withstand tension, pressure, and stretching.
The collagen fibers in the dermis provide structural integrity and help maintain the skin's shape. They contribute to the overall strength of the skin, preventing tearing or damage from external forces. The elastin fibers, on the other hand, allow the skin to be flexible and elastic, enabling it to return to its original shape after being stretched.
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Question 4 of 20
A marketing plan includes a number of factors, including the marketing mix.
What is the marketing mix?
OA. The variables of product, price, place, and promotion
OB. Using names and symbols to identify the company's products
OC. How the company intends for customers to view its product
relative to the competition
D. A plan for spending money
SUBMIT
The marketing mix refers to a set of variables or factors that a company can use to influence its customers' perception of its products or services. These variables are commonly known as the four Ps of marketing: product, price, place, and promotion. The correct option is option a.
Product refers to the physical or intangible item that a company is selling. This includes features, design, quality, and branding. Price refers to the amount that a customer must pay to obtain the product. It includes factors such as discounts, pricing strategies, and payment terms. Place refers to the distribution channels that a company uses to deliver its products or services to customers. This includes the location of the stores, the methods of delivery, and the inventory management systems.
Promotion refers to the communication activities that a company uses to promote its products or services. This includes advertising, public relations, personal selling, and sales promotion. The marketing mix is an essential tool for companies to develop and implement their marketing strategies effectively. By understanding the four Ps, a company can tailor its marketing efforts to suit the needs and wants of its target customers. The correct option is a.
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When fire alarm sounds. Why should you evacuate children immediately even if you do not see flames?
Answer: because even if there is no fire there could be an explosion, fire and gasoline WILL make an explosion. So Basically it can start with fire but soon turn into an explosion. If it's a fire DRILL then it's for practice if that actually does happen.
Mr. D is the manager of a local walgreens. His biggest concern is to make sure that his store is always making the most profit possible. He cuts costs by focusing on certain logistical decisions. Every other day walgreens receives shipments from pepsi, evian, hershey, and numerous other manufacturers. Walgreens insists on small shipments every two days, which helps to keep their inventory costs low. What system is mr. D using at walgreens to reduce his costs?.
Mr.D is using just-in-time inventory at Walgreens to reduce his costs.
Just-in-time, or JIT, is an inventory management method in which goods are received from suppliers only as they are needed. The main objective of this method is to reduce inventory holding costs and increase inventory turnover.
A just-in-time (JIT) inventory system is a management strategy that has a company receive goods as close as possible to when they are actually needed. So, if a car assembly plant needs to install airbags, it does not keep a stock of airbags on its shelves but receives them as those cars come onto the assembly line.
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the law of supply states that____of a product will be offered at a high place and____of a product will be offered at a low price
Answer:
as the price of an item goes up, suppliers will attempt to maximize their profits by increasing the quantity offered for sale.
Explanation:
Tim has worked for one employer his entire career. while he was working, he participated in the employer's defined contribution plan (traditional 401(k)]. at the end of 2021, tim retires. the balance in his defined contribution plan is $2,000,000 at the end of 2020. a) what is tim's required minimum distribution for 2021 that must be distributed in 2022 if he is 68 years old at the end of 2021? b) what is tim's required minimum required for 2021 if he turns 72 during 2021? when must he receive this distribution? c) what is tim's required minimum distribution for 2021 that must be distributed in 2022 if he turns 75 years old in 2021? d) assuming that tim is 76 years old at the end of 2021 and his marginal tax rate is 32 percent, what amount of his distribution will he have remaining after taxes if he receives only a distribution of $50,000 for 2021? e) complete form 5329, page 2, to report the minimum distribution penalty in part (d). use the most recent form available.
A) Tim's required minimum distribution for 2021, which must be distributed in 2022 if he turns 68 at the end of 2021, is $72,964.
B) Tim's required minimum distribution for 2021 if he turns 72 in 2021 is $62,964. This distribution must be delivered by the end of 2021.
C) Tim's required minimum distribution for 2021, which must be distributed in 2022 if he turns 75 in 2021, is $63,964.
D) Assuming that Tim will be 76 at the end of 2021 and his marginal tax rate is 32 percent, the amount of his distribution remaining after taxes if he only receives the $50,000 distribution for 2021 is $33,600.
E) Form 5329, page 2, is used to report the minimum distribution penalty. The information provided on the form is important to accurately fill out the form in order to accurately report the correct penalty. It includes information such as the payer's name, address, social security number, name of the retirement plan from which the distribution was taken, the amount of the distribution, and the amount of any penalties due.
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What is the main difference between a market and a command economy?
Answer:
Market economies utilize private ownership as the means of production and voluntary exchanges/contracts. In a command economy, governments own the factors of production such as land, capital, and resources. Most nations operate largely as a command or market economy but all include aspects of the other.
A toy company no longer selling a bicycle with a faulty part is using which risk management
strategy?
A. Avoiding risk
B. Accepting risk
C. Sharing Risk
D. Reducing risk
Answer:
This is an example of A. Avoiding risk
Explanation:
The answer is A because by not selling the bike with the faulty part, they are AVOIDING injuring the people who purchase their bikes.
The Fed buys $10 million of securities from AIG. AIG has a desired reserve ratio of 0.05, and there is no currency drain.
As soon as the open market purchase is made, the bank's excess reserves are at $___ million
Answer:
$200,000,000
Explanation:
Given that:
Amount of securities purchased = $10 million
Desired reserve ratio = 0.05
The bank's excess reserve :
Money multiplier * amount of securities purchased
Money multiplier = 1 / reserve ratio
Money multiplier = 1 / 0.05 = 20
Excess reserve = 20 * $10,000,000
Excess reserve = $200,000,000
what is democracy????
Explanation:
a system of government by the whole population or all the eligible members of a state, typically through elected representatives.
Answer:
A system in which government is selected by the citizens....
Europe wanted luxury products and exchanged the finished products for silver from what country?
Europe wanted luxury products and exchanged the finished products for silver from Bolivia and Mexico.
What is Trading?
Trading is the act of buying and selling financial items including stocks, bonds, currencies, and commodities, as opposed to investing, which suggests a buy-and-hold strategy. The ability of a trader to achieve long-term profitability is crucial to success in trading.
Henry has food but needs wool, in contrast to Liam who has wool but needs food. To please both of them, Liam and Henry will trade food for wool in order for Liam to get food and Henry to get wool. The pinnacle of trading is this.
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According to the video, some workers who work for themselves, such as Actors, Musicians, or Writers, may have what
sort of worker represent them to potential customers?
O an Agent
O a Headhunter
an Employer
a Mentor
Answer:
an Agent
Explanation:
just answered it and got correct
Answer: Agent
Explanation: just got it right on edge
Jamie works for an amusement park. Summer is the busiest time, and there is a real shortage of employees, so there is a lot of overtime. Jamie's employer has told all the employees that, rather than being paid overtime, they will be paid for any overtime hours at a straight time on their last cheque. The employer says that he is allowed to do this because he has an overtime agreement. jamie is not sure that this is allowed. Is the employer right?
No, the employer is not right. Paying overtime hours at straight time on the last paycheck is not allowed. Under the Fair Labor Standards Act (FLSA) in the United States,
employers are required to pay employees at a rate of 1.5 times their regular pay rate for any hours worked beyond 40 hours in a workweek. This is commonly known as overtime pay. The employer cannot unilaterally change this requirement or bypass it through an overtime agreement. The FLSA sets the minimum standards for overtime pay and applies to most employees, including those working in amusement parks. While employers can offer alternative workweek arrangements or flexible scheduling, they still need to comply with overtime regulations. If employees work overtime, they must be compensated accordingly. Therefore, Jamie's employer is incorrect in stating that he can pay overtime hours at straight time on the last paycheck. Jamie and other employees should be entitled to receive overtime pay for the extra hours they work during the summer season. If Jamie believes that his employer is violating labor laws, he may consider consulting with a labor attorney or reporting the issue to the appropriate labor enforcement agency in his jurisdiction.
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Calculate China’s RGDP growth rate in 2006, the growth rate of real GDP per person in 2006 (using the approximation formula), and the approximate number of years it will take for real GDP per person in China to double if the 2006 economic growth and population growth rates are maintained.
China’s RGDP growth rate in 2006 was _______ percent. Round up your answer to the first decimal. China’s growth rate of real GDP per person in 2006 (using the approximation formula) was ______ percent. Round up your answer to the first decimal.
It will take China approximately _______ years to double its real GDP per person. Round up your answer to a full number (no decimals).
Answer:
China’s RGDP growth rate in 2006 was 8.2% percent. Round up your answer to the first decimal. China’s growth rate of real GDP per person in 2006 (using the approximation formula) was 7.7% percent. Round up your answer to the first decimal.
It will take China approximately 9 years to double its real GDP per person. Round up your answer to a full number (no decimals).
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
In 2005 China's RGDP was 7,394 billion yuan. In 2006 its RGDP was about 8,000 billion yuan. China's population was 1,306.6 million in 2005 and 1,313.1 million in 2006.
Calculate China's RGDP growth rate in 2006, the growth rate of real GDP per person in 2006 (using the approximation formula), and the approximate number of years it will take for real GDP per person in China to double if the 2006 economic growth and population growth rates are maintained.
China's RGDP growth rate in 2006 was _______ percent. Round up your answer to the first decimal. China's growth rate of real GDP per person in 2006 (using the approximation formula) was ______ percent. Round up your answer to the first decimal.
It will take China approximately _______ years to double its real GDP per person. Round up your answer to a full number (no decimals).
The explanation to the answer is now given as follows:
a. Calculate China’s RGDP growth rate in 2006. Round up your answer to the first decimal.
This can be calculated using the following formula:
China’s RGDP growth rate = (2006 RGDP - 2005 RGDP) / 2005 RGDP = (8,000 - 7,394) / 7,394 = 0.0820, or 8.2%
b. Calculate the growth rate of real GDP per person in 2006. Round up your answer to the first decimal.
This can be calculated using the following formula:
China’s RGDP per person growth rate = (2006 RGDP per person - 2005 RGDP per person) / 2005 RGDP per person ............... (1)
Where;
2006 RGDP per person = 2006 RGDP / 2006 population = 8,000 / 1,313.1 = 6.09245297387861 billion yuan
2005 RGDP per person = 2005 RGDP / 2005 population = 7,394 / 1,306.6 = 5.65896219194857 billion yuan
Substituting the values into equation (1) above, we have:
China’s RGDP per person growth rate = (6.09245297387861 - 5.65896219194857) / 5.65896219194857 = 0.077, or 7.7%
c. The approximate number of years it will take for real GDP per person in China to double if the 2006 economic growth and population growth rates are maintained. Round up your answer to a full number (no decimals).
To calculate this, the rule of 70 is used as follows:
Number of years for Real GDP per person to double = 70 / China’s RGDP per person growth rate = 70 / 7.7 = 9 years
Which of the following accurately explain why there is no direct tie between the Fed’s monetary policy tools and its goals? Check all that apply.
1. Effectiveness lags
2. Information lags
3. A broken relationship between monetary aggregates and the rate of inflation
4. Implicit targeting
There are several reasons why there is no direct tie between the Federal Reserve's monetary policy tools and its goals. First, effectiveness lags occur when changes in monetary policy take time to affect the economy.
Second, information lags occur because the Fed may not have complete or accurate information about the economy, making it difficult to make precise policy decisions. Third, there is a broken relationship between monetary aggregates, such as the money supply, and the rate of inflation, making it challenging for the Fed to control inflation through traditional means. Finally, the Fed may use implicit targeting, which involves focusing on a specific economic variable that is indirectly related to its goals, rather than directly targeting its goals. Overall, these factors create a complex relationship between the Fed's policy tools and its goals, requiring careful consideration and analysis when making policy decisions.
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