The higher the ratio, the more risky of the company for the shareholders to invested. For the debt-to-equity ratio of the company, it shows a slightly increasing ratio from 0.0025:1 in 2014 to 0.0027:1 in 2015. This shows Nestle (Malaysia) Berhad is a bit risky to be invested compare to the previous year. The equity ratio refers to the amount of money that a company used to finance the assets by using the money invested by the shareholders. The lower the ratio, the higher the ability of the company had to pay back the long term debt.
John (2015) noted that there is no alternative in the issue but to continue raising tuition fees unless inflation is ceased. However, according to John (2015) during the past forty years, the price of tuition fees has been increasing far more rapidly than inflation. Therefore, this unexplainable increase has raised the question of whether the university is still worth it. Li (2013) noted that there has been an increase in the demand for higher education. Hence, families tend to use student loans in order to pay for college fees, which allows them to increase the price of tuition even further because the demand is constantly increasing.
3. How might these changes affect the US economy? As the loan process is made harder, this will also increase the interest rate of the bank , since it will be now harder to quality for the loan and will lower the housing market. 4. Points to ponder: If a similar situation happened in India today, how might it affect India's economy?
For the 3rd year, the funds that would be required is $144,000 and the cycle goes on for the 4th year and so on. From the above example, it can be concluded that the initial monetary profits from the operation of Ponzi schemes are massive. From the above observation, it can be said that the Ponzi perpetrators loot the initial sum of $100,000. However, after a specific point in time, the scheme would collapse as the demand for the funds expand over a period of time as clarified in the above case. The plan depends on an unlimited supply of funds but this is clearly not acceptable and this is one of the reasons that explained why Ponzi scheme collapsed.
To eliminate this surplus, the government would have to cut taxes or increase spending. These actions would increase aggregate demand, thereby pushing GDP even further beyond potential GDP and increase the risk of higher inflation. To balance the budget every year, the government might have to take actions that would destabilize, or even destroy the
List of Cons of Hydrogen Fuel Cells 1. They are extremely expensive. Initially, hydrogen fuel cells are extremely expensive to manufacture. However, just like other new technologies, their costs would come down to price levels that are affordable by normal consumers with mass production. Now, we are in a transition period, where many fuel cell manufacturers are investing literally hundreds of millions of dollars in gearing up for mass manufacturing and, at the same time, trying to develop a variety of markets for such products.
As a value-added tax, the goods and services tax (GST) is chargeable to the final consumer and it will increase the tax burden to consumer when they purchased the goods or services as the input price and selling price increased. From the articles that we found, we know that unemployment rate of Malaysia is decreasing recently. When unemployment rate is decreasing and firms need to hire more employees, they will spend more money on salary to hire a worker. Therefore, it will lead to an increase in wage rate. Thus, it will increase the cost of production since employers need to pay higher salary to their employees.
New employment is created by constructing infrastructure and facilities. If the area where the new project will start is a poor area, the impact will become huge that we expect. We cannot assume the size of impact that is brought by one project. Some countries, like UAE, Qatar, and other Middle East Countries became a really rich country by oil revenues so-called oil money. So we can help people to get out of poverty and harsh situation by starting only one new project.
Nevertheless, this utopian image which has been painted by numerous politicians and philosophers is being challenged by economists who are concerned with the costs of such a policy. Tanner highlights the fact that in the United States alone, the implementation of a universal basic income would amount to an estimated $4.4 trillion. Even by replacing all existing welfare system, they would still be $2.5 trillion short. The lack of capital will be directly transferred onto the citizens in form of substantial tax increases. In consequence, despite the fact that a guaranteed minimum revenue si the key to solving major issues theoretically, it would not be accurate to state that it could easily be implemented in the real world.
No doubt, this will lead to high unemployment due to some firms operating below normal capacity. To combat unemployment in a recession, the government needs to carry out an expansionary policy by increasing money supply and decreasing interest rate. Thus, lower the interest rate will lead to increase in aggregate demand (consumption, investment, government expenditure and net export). Besides that, a reducing bank’s reserve requirement and purchasing government bonds will enhance real GDP increase to the potential GDP and the price level rises, hence eliminate the recession gap. In 1998 (financial crisis), credit flow in Malaysia is slow (UK Essays, 2013).