Laffer Curveand its association to supply side economics
Describe the Laffer Curve and how does it associate to supply side economics?
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Economist Arthur Laffer observed that tax revenues would clearly be zero while the tax rate was either at 0% or 100%. Among these two extremes ought to be an optimal rate where aggregate output & income created the maximum tax revenues.
If an optimal capital structure exists, describe reasons why too little debt is as unwanted as is too much debt? Too little debt may be as unwanted as too much debt since if a firm contains a very conservative capital structures it may be losing
Workload: The measurement of rises and reduces of inputs or demands for work, and an ordinary basis for projecting related budget requires for both established and new programs. This approach to BCPs is frequently viewed as an alternative to outcome o
Give two instances of types of companies likely to contain high operating leverage. Give examples. Long distance telephone companies & electricity generating companies are likely to contain operating leverage. These two kinds of companies
Are there security & soundness implications of mergers?No. All mergers needs regulatory approval and are subject to intense examination through regulators. If anything, the influence on safety and soundness is in general positive, as mergers
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Describe the advantages and disadvantages of the aggressive working capital financing approach? An aggressive working capital financing approach generally results in a lower cost of funds for a firm however a higher level of risk.
Budget: It is a plan of operation stated in terms of financial or other resource necessities for a particular period of time.
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