As treasurer of the Universal Bed Corporation, Aristotle Procrustes is worried about his bad debt ratio, which is currently running at 6.2%. He believes that imposing a more stringent credit policy might reduce sales by 5.2% and reduce the bad debt ratio to 4.2%. Assume current sales of $100. a. If the cost of goods sold is 82% of the selling price, calculate the profit under both the current policy and the proposed policy. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Which of the statements best describes why the aggregate demand curve is downward sloping? an increase in the aggregate price level causes consumer and investment spending to fall, because consumer purchasing power decreases and money demand increases. as the aggregate price level increases, consumer expectations about the future change. as the aggregate price level decreases, the stock of existing physical capital increases. as a good's price increases, holding all else constant, the good's quantity demanded decreases.