During the recent recession, several european countries proposed austerity measures that would shrink the size of the national deficits within the countries. these proposed measures included tax hikes and cuts in government spending. when this happened in the united states in the 1990s, there was an accompanying decrease in the policy rate to avoid slowing the economy down too much. why was this same policy decision more difficult in europe? a. in response to the recession, the policy rate in europe had already been lowered close to the zero lower bound, so additional decreases were not viable. b. europeans protested against the austerity measures, which angered the government; it responded by intentionally not taking steps to limit the impact of these measures. c. there is no mechanism in europe to change the policy rate like there is in the united states. d. european governments had never implemented these types of austerity policies before so they were not aware of the need for monetary policy to limit the impacts.

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?

Boone brothers remodels homes and replaces windows. ace builders constructs new homes. if boone brothers considers expanding into new home construction, it should evaluate the expansion project using which one of the following as the required return for the project?

When using various forms of promotion to carry the promotion message, it is important that the recipients of the message interpret it in the same way. creating a unified promotional message, where potential customers perceive the same message, whether it is in a tv commercial, or on a billboard, or in a blog, is called