In Figure 4.4, the most likely cause of the increase in the equilibrium interest rate from i1 to i2 is
A) an increase in the price of bonds.
B) a business cycle boom.
C) an increase in the expected inflation rate.
D) a decrease in the expected inflation rate.
C
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Business markets have several characteristics that contrast sharply with those of consumer markets. Name and briefly characterize five of those characteristics
What will be an ideal response?
_____ refers to converting a noncash item to cash, for example, collecting an account receivable
a. Actualization b. Recognition c. Realization d. Materialization e. Transformation
In general, with regard to exchange controls, developed countries
A. use them only to discourage foreign investment. B. use them secretly. C. rarely use them. D. use them when needed to implement monetary policy.
Donnelly Manufacturing Donnelly Manufacturing sells cedar birdhouses. The company has prepared the following sales forecast for the third quarter of 2013: July 10,000 units August 12,000 units September 20,000 units Inventory at June 30, 2013 was budgeted at 1,500 units. Management would like the desired quantity of finished goods inventory at the end of each month to be equal to 15% of next
month's budgeted unit sales. October's sales are projected to be 24,000 units. Each completed unit of finished product requires 2.5 square feet of cedar at a cost of $3.5 per square foot. Refer to the Donnelly Manufacturing information above. The company has determined that it needs 10 percent of next month's raw material needs on hand at the end of each month. The cost of the direct material that should be purchased in August is: A) $121,975 B) $ 34,850 C) $115,500 D) $ 46,200