subject
Business, 28.09.2021 17:40 alethhaaa

Why is this restriction so useful in economic analysis? Because one of the two variables might have a larger impact on a third variable than the other one being examined.

If other variables that do not interact with these two variables are not held fixed, the true relationship between the two
variables would be hidden.

To fully understand the relationship between two variables, it is necessary to change each of the variables sequentially
while holding the others constant.

If every variable is allowed to change, it would be impossible to isolate the impact of one variable on another.


Why is this restriction so useful in economic analysis?

Because one of the two variables might ha

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 21:00
Colah company purchased $1.8 million of jackson, inc. 8% bonds at par on july 1, 2018, with interest paid semi-annually. when the bonds were acquired colah decided to elect the fair value option for accounting for its investment. at december 31, 2018, the jackson bonds had a fair value of $2.08 million. colah sold the jackson bonds on july 1, 2019 for $1,620,000. the purchase of the jackson bonds on july 1. interest revenue for the last half of 2018. any year-end 2018 adjusting entries. interest revenue for the first half of 2019. any entry or entries necessary upon sale of the jackson bonds on july 1, 2019. required: 1. prepare colah's journal entries for above transaction.
Answers: 1
question
Business, 21.06.2019 23:00
Assume today is december 31, 2013. barrington industries expects that its 2014 after-tax operating income [ebit(1 – t)] will be $400 million and its 2014 depreciation expense will be $70 million. barrington's 2014 gross capital expenditures are expected to be $120 million and the change in its net operating working capital for 2014 will be $25 million. the firm's free cash flow is expected to grow at a constant rate of 4.5% annually. assume that its free cash flow occurs at the end of each year. the firm's weighted average cost of capital is 8.6%; the market value of the company's debt is $2.15 billion; and the company has 180 million shares of common stock outstanding. the firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. using the corporate valuation model, what should be the company's stock price today (december 31, 2013)? round your answer to the nearest cent. do not round intermediate calculations.
Answers: 1
question
Business, 22.06.2019 01:40
Costs of production that do not change when output changes.question 17 options: total revenuefixed incometotal costfixed cost
Answers: 1
question
Business, 22.06.2019 21:40
Western electric has 32,000 shares of common stock outstanding at a price per share of $79 and a rate of return of 13.00 percent. the firm has 7,300 shares of 7.80 percent preferred stock outstanding at a price of $95.00 per share. the preferred stock has a par value of $100. the outstanding debt has a total face value of $404,000 and currently sells for 111 percent of face. the yield to maturity on the debt is 8.08 percent. what is the firm's weighted average cost of capital if the tax rate is 39 percent?
Answers: 2
You know the right answer?
Why is this restriction so useful in economic analysis? Because one of the two variables might hav...
Questions
question
Mathematics, 01.07.2019 22:00
Questions on the website: 13722367