6. The chair of the government exchequer in Olympios has announced, and written into law, the spending plans for 2022: government spending on capital projects is planned as $80 billion, and government current spending will be $235 billion. Taxes have been set at 20% of income. Private investment in the economy is forecast at $145 billion. Autonomous consumption (independent of income) is estimated at $20 billion, and the marginal propensity to consume goods and services out of disposable income is 0.75. Imports and exports are projected to generate cashflows of $320 billion and $285 billion respectively. a) Write down a function for consumption of domestically produced goods and services as a function of national income Y. [1 mark] b) Determine the equilibrium level of national income for the economy in 2022. [3 marks] c) Calculate the projected tax receipts and budget surplus/deficit for 2022. [2 marks] d) A senior economic advisor proposes that the government run a deficit of $50 billion in 2022, while maintaining the level of national income calculated in part b). Assuming that all private money flows remain the same, calculate the new tax rate that would be required to achieve this, and the new level of government expenditure that would result. [4 marks] [Total: 10 marks]
Answers
a) A function for consumption of domestically produced goods and services as a function of national income is C = a + b(Y-T).
b) The equilibrium level of national income for the economy in 2022 is $1,800 billion.
c) The projected tax receipts and budget surplus/deficit for 2022 is $360 billion and $45 billion respectively.
d) The new tax rate that would be required to achieve this is 17%, and the new level of government expenditure that would result in $365 billion.
a) The function for consumption of domestically produced goods and services as a function of national income Y is given by: C = a + b(Y-T)
Here, C is the consumption of domestically produced goods and services, a is autonomous consumption, Y is national income, T is taxes, and b is the marginal propensity to consume goods and services out of disposable income.
b) Equilibrium level of national income for the economy in 2022 is determined using the formula:
Y = C + I + G + NX
Here, I is private investment in the economy, G is government spending on capital projects and current spending, and NX is net exports.
We can substitute the given values to obtain:
Y = (20 + 0.75(Y - 0.2Y)) + 145 + (80 + 235) + (285 - 320)
Simplifying and solving for Y, we get:
Y = 1800
Therefore, the equilibrium level of national income for the economy in 2022 is $1,800 billion.
c) Projected tax receipts can be calculated as:
Tax receipts = T × Y = 0.2 × 1800 = $360 billion
Total government spending = $80 billion + $235 billion = $315 billion
Budget surplus/deficit = Tax receipts - Total government spending= $360 billion - $315 billion = $45 billion
Therefore, the projected budget for 2022 has a surplus of $45 billion.
d) To achieve a deficit of $50 billion while maintaining the level of national income calculated in part b), we need to find the new tax rate and government expenditure using the formula:
Y = C + I + G + NXY = a + b(Y - T) + I + G + NX
Substituting the given values and simplifying, we get:
T = 0.17 (rounded to two decimal places)
Government expenditure = $315 billion + $50 billion = $365 billion
Therefore, the new tax rate required to achieve a deficit of $50 billion would be 17% and the new level of government expenditure would be $365 billion.
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Related Questions
Match the different account heads to the two aspects of business.
Answers
Answer:
See below
Explanation:
Match Source A
The business owns:
Are assets that belong to the business.
investments
intangible assets
Property, Plant, and Equipment
Current assets
Match source B
Match owes :
Refer to the liabilities of the business. They belong to others.
loans
payable
Shutter speeds are measured in full seconds, starting with one second and moving up from there.
t or f
Answers
Answer:
False
Explanation:
Shutter speeds are measured in fractions of seconds and not full seconds
Answer:
Explanation:
I took the test
businesses should strive to determine an optimal organizational size. True or false?
Answers
True, companies should seek to find the appropriate organizational size.
Organizational size is an important factor in determining a company's success.
Having the right size allows a company to increase efficiency and make better use of resources.
A company that is either too small or too large for the demands of its customers and the marketplace can experience difficulties in meeting customer needs, growing profits, and increasing its competitive edge.
Companies should consider their customer base, the size of their internal staff, and the resources they can devote to the business when determining the appropriate size for their organization.
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PLEASEEEE HURRRYYYY Read the prompt and enter your response in the space provided.
Enter the title of the article you read and the author or the source.
Answers
Brent called insurance companies and got insurance quotes for the three trucks. Both the 1996 Ford F150 and the 1998 Chevy 1500 were quoted for $250 and the 2000 Toyota Tundra was quoted for $245. To help Brent make his decision gather some more reliable information by using newspapers, or looking at their Web sites, and reviewing consumer magazines and Web sites. Also, look at the manufacturer Web site or www.fueleconomy.gov for information about gas mileage. List the sources you use and include the notes you take from each source.
Use the PACED decision-making process to make the decision for Brent. Show your work.
Answers
The sources that one could use to gather some more reliable information regarding the insurance companies are;
P - Problem - there is a need to make a choice
A - Alternatives - The alternatives here are two insurance companies
C - Criteria - We need to establish the company that is more reliable
E - Evaluate - This is the process of comparing information obtained about both companies
D - Decision making - This is the process of making a decision to go with the best insurance company.
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most employers in the united states prefer to hire new employees by running classified ads in newspapers.
T/F
Answers
The statement is False. Most employers in the United States do not prefer to hire new employees by running classified ads in newspapers.
In today's digital age, the preferred method for hiring new employees has shifted from running classified ads in newspapers to utilizing online platforms and job boards. The widespread use of the internet and the advent of specialized job search websites have revolutionized the recruitment process.
Employers now have access to a wide range of online resources that provide targeted reach and enable them to reach a larger pool of potential candidates. Online job boards and professional networking platforms, such as LinkedIn, have become popular avenues for advertising job openings and connecting with qualified individuals.
The digital approach offers several advantages over traditional newspaper classified ads. Online platforms allow for more detailed job descriptions, the ability to include multimedia content, and the option to reach a geographically diverse audience.
While some employers may still utilize print advertisements in newspapers for certain positions or in specific localities, the majority now rely heavily on digital recruitment strategies due to their efficiency, cost-effectiveness, and broader reach.
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due process of the law protects an individual's
a. liberty and property interests
b. right to prosperity
c. job
d. pursuit of happiness
Answers
Answer:
a. liberty and property interests.
Explanation:
A law can be defined as the system of principles, regulations and rules established by legislature, that is adopted in a community, society or country to regulate the actions of its citizens, members or employees.
Thus, law is a tool used by the judiciary, lawyers, individuals, organizations, and even government to ensure everybody is well behaved, non-criminal and civil in their actions. Therefore, a law creates the foundation for ethical behavior.
In circumstances where there are aberration, the law is enforced as a punishment and penalty for wrongdoings or misdeeds.
Hence, due process of the law protects an individual's liberty and property interests because it ensures the right legal procedures are followed and that all accused are given access (entitled) to a fair trial.
Supposing you were asked by your Professor handling the course to write an academic paper on Criminal Law as it Affects on Business Organisations in Europe, present a list of 10 references that you will likely use in the course of writing the paper.
Answers
When writing an academic paper on Criminal Law as it affects business organizations in Europe, here is a list of ten references that can provide valuable information for your research.
Kostoris P., De Michele M. (eds) (2020), Business Crimes in Europe: Legal and Criminological Perspectives on Corruption, Organized Crime and Economic Crime, Routledge.Werle G., Jessberger F., Sterett S. (eds) (2019), Economic Crimes and International Criminal Law, T.M.C. Asser Press.Doak J., Clough R. (eds) (2020), European Criminal Law: An Integrative Approach, Routledge.Mitsilegas V., Bergström M. (eds) (2016), Research Handbook on EU Criminal Law, Edward Elgar Publishing.Ryder N., Dubber M.D., Farmer L. (eds) (2020), The Cambridge Handbook of Criminal Law, Cambridge University Press.Burch D., Rogerson C. (2015), Criminal Law and Policy in the European Union, Routledge.Hartmann J., Jagersma F., Roorda N. (eds) (2017), Corporate Criminal Liability and Compliance Programs: A Global Perspective, Kluwer Law International.Mitsilegas V., Monar J., Rees W. (eds) (2017), The European Union and Internal Security: Guardian of the People?, Palgrave Macmillan.Alldridge P. (2016), Criminal Justice and Taxation, Cambridge University Press.Moos M., Nelen H. (2017), White Collar Crime in Europe: Developments in the EU, Ashgate Publishing.These references cover a range of topics related to criminal law, business organizations, and their intersection in the European context.
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Which two statements are characteristics of high-involvement purchases?.
Answers
The statements that depict high-involvement purchases include:
The purchase can reflect on one's social image. The purchase can have serious personal consequences.What is a high involvement purchase?A high involvement purchase simply means when a consumer buys a product that's expensive.
This poses a risk of emotional consequence when a mistake is made. The purchase can also reflect on one's social image and have personal consequences.
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Which of the following is least likely to be a theme in a novel about young people going to war?
Answers
Answer:
What are the options?
1.1.Consider the following information about the production of wheat and cloth in the U.S.
and the U.K. Table 1.1 gives the maximum amount of wheat or cloth that the U.K and the
U.S. could produce if they fully utilized all of the factors of production at their disposal
with the best technology available to them. All the assumptions of the
"classical" (Smith-
Ricardo) model of comparative advantage apply.
Table 1.1
Wheat (millions of bushels/year)
U.K 50
U.S 120
Cloth (millions of yards/year)
U.K. 150
U.S 80
e) What are the limits within which mutually advantageous trade can take place between
the U.K. and the U.S? What is the smallest and the greatest relative price of cloth in
terms of wheat that both countries would find acceptable to be traded? Explain how
you got your answer.
f)
If Pc/Pw is stabilized at 1 with trade, explain why the U.K. and the U.S. gain. Which
country will gain more?
Answers
When it comes to the production of both wheat and fabric, the US has a clear advantage. Contrarily, the opportunity cost of producing a unit of wheat in the United States is equal to one computer, whereas that in India is equal to half a computer.
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Jane Smith lives at home with her parents at 5678 Main Street in Anytown, Missouri, but she has just put in an application for an apartment. After closing out her credit account with the Checkout store chain, she has only one credit card, from North Valley Credit Union. She currently makes installment payments to Tri-State Bank on her car.
Based on Jane’s profile, what credit accounts should she expect to verify on her credit report? Check all that apply.
a current account with North Valley Credit Union
a mortgage account for her parents’ home
her closed account with Checkout
a current account for her car loan
an account with the apartment complex
Answers
Jane Smith should expect to verify a current account with North Valley Credit Union, a current account for her car loan and an account with the apartment complex on her credit report.
What is a current account?A current account is a type of bank account that protects your money and makes smart money management easier. Personal current accounts make it easier for people, corporations, and organizations to pay you (through direct debits and standing orders). Even though you may use other financial instruments, it is your current account that connects the gaps and makes it possible for everything to function properly.
Living without a current account can be very challenging because they provide much of the infrastructure required for making and receiving payments. Current accounts are engrained in our way of life.
While you might think that opening a bank account entails scheduling a visit to your neighborhood bank location, technological advances have made this procedure considerably simpler and faster for you. You might be able to open an account from the comfort of your home without ever having to enter a physical branch, depending on who you are working with.
What is a Credit report?Your credit history is broken down in great detail in a credit report that is created by a credit reporting agency. Lenders use the reports, along with other information, to assess your creditworthiness. Credit bureaus gather financial information about you and compile credit reports based on that information.
Reports contain information about you personally, information about credit lines, public records like bankruptcies, and a list of organizations that have requested a copy of your credit report.
Every one of the three main credit bureaus—Equifax, Experian, and TransUnion—must offer you one free report every year.
Additionally, credit reports include information about accounts that have been reported to credit bureaus, including details about liens and wage garnishments.
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Answer:
a current mortgage with North Valley Credit Union
a current account for her car loan
her closed account with Checkout
Explanation:
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What does it mean tamper proof?
Answers
Tamper proof means made so that you are able to see if anything has been changed, opened, removed or damaged.
Tamper-proof containers/locks/packaging product makers are encouraged to use tamper-proof packaging for their products.
Tamper evident packaging is packaging that alerts the consumer to foul play or damage to the product.
When tamper evident packaging is triggered by attempted removal or manipulation, it leaves evidence of these actions behind.
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In the process of mentoring, in which a more experienced employee guides and nurtures a newer, less experienced employee, it is recommended that:
a.) all senior employees in the department be assigned their turn as mentors to afford them the experience
b.) at the start of the relationship a specific length of time for the mentoring to last is established
c.) the manager closely monitors the mentor's behavior during the relationship
d.) mentors should serve voluntarily and willingly without being required to do so
Answers
Mentoring is the process by which a more experienced employee guides and nurtures a newer, less experienced employee. The process of mentoring provides an opportunity for an experienced employee to share knowledge and skills with less experienced ones.
It is recommended that mentors should serve voluntarily and willingly without being required to do so. The process should be an opportunity for the mentor to develop their skills, and therefore it should be voluntary.
The process of mentoring should also be a two-way street, where both parties gain valuable experiences from one another.
At the start of the relationship, a specific length of time for the mentoring to last is established to help both parties prepare for the mentoring period.
The relationship should be nurtured and monitored by the manager, but the mentor should be free to take responsibility for the mentoring process.
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This is a method of evaluation in a credit bureau that assigns points based on several factors to compute credit
scores for consumers.
Answers
Answer:
point system
Explanation:
Country Q has experienced a rapid increase in its unemployment rate and a sharp decline in its GDP. What might policymakers do in the face of these economic indicators?
A) encourage a decrease in purchasing until employment figures increase
B) try to trade with other nations to increase production and create new jobs
C) increase taxes so the government has more money to spend
D) implement controls on wages, forcing employers to pay higher wages
The Answer is:: B) try to trade with other nations to increase production and create new jobs
Answers
Answer:
B). Try to trade with other nations to increase production and create new jobs.
Explanation:
Country Q has encountered a brisk fall in its rate of unemployment and as a consequence, a sharp downturn in its GDP. In such a situation, the most significant action to go on would be to 'create new job opportunities' and that can be done by making efforts to encourage trade with other nations which will help in increasing production and more production would generate job opportunities and increase GDP automatically. The increased trade will increase productivity and assist in bringing the economy back on track. Thus, option B is the correct answer.
Answer:
b
Explanation:
to increase diversity awareness within his new team of employees, franco shouldmultiple choicesuppress the personal styles of team members in favor of group identity.stick with one consistent approach rather than trying different ways to do things.let problems grow until they are visible enough to be countered.reduce the time spent in socializing and concentrate on work.improve team members' understanding of others' experiences and perspectives.
Answers
Franco should "improve team members' understanding of others' experiences and perspectives" to increase diversity awareness within his new team of employees.
What is diversity awareness? Diversity awareness is the practice of being aware of and acknowledging the differences between individuals in society. This refers to a sense of tolerance, respect, and recognition of each other's differences. To develop diversity awareness, individuals must educate themselves about the unique characteristics of people from various backgrounds and seek to comprehend the impact of these differences on themselves and society as a whole.
How can Franco increase diversity awareness within his new team of employees? To increase diversity awareness within his new team of employees, Franco should improve team members' understanding of others' experiences and perspectives.
To create an environment in which everyone feels welcome and respected, team members must learn about one another's cultures, traditions, and experiences, and be open to diverse perspectives. This may include training sessions, team-building exercises, or cultural events. By raising awareness and sensitivity to diversity issues, Franco can help to promote a positive and inclusive work environment.
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as a federal employee, what are your legal options to protect you from retaliation?
Answers
You may submit a complaint in court or with a federal agency, file a Charge of Discrimination with the EEOC, participate in an employment discrimination inquiry or litigation, and engage in protected EEO activities. EEOC charges of discrimination are also available.
What is a federal employee rights?Generally, You have the basic right to file a complaint in court or with a federal agency, submit a Charge of Discrimination to the EEOC, take part in an investigation into or file a lawsuit alleging employment discrimination, and engage in any protected Equal Employment Opportunity (EEO) action.
You also have the option of reporting discrimination to the EEOC.
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customers interacting with omnichannel retailers most desire a(n) ________ experience.
Answers
Customers interacting with omnichannel retailers most desire a(n) seamless experience.
A seamless experience refers to a cohesive and integrated customer journey across various channels and touchpoints. Customers expect a consistent and uninterrupted experience as they switch between online and offline channels, such as websites, mobile apps, physical stores, social media platforms, or customer service interactions.
In an omnichannel retail environment, customers desire a seamless experience where they can effortlessly navigate between channels, access consistent product information, make purchases, and receive support or assistance. They expect their preferences, purchase history, and interactions to be seamlessly synchronized across channels, allowing for personalized and convenient interactions.
Retailers that prioritize delivering a seamless experience invest in technologies and strategies to integrate their channels, unify customer data, and provide a consistent brand experience. This includes features like click-and-collect, cross-channel inventory visibility, personalized recommendations, and smooth transitions between digital and physical touchpoints.
By offering a seamless experience, omnichannel retailers can enhance customer satisfaction, build loyalty, and differentiate themselves in a competitive market.
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The impact of Furman v. Georgia (1972) was that states had to
promise to use the death penalty only with approval from the Supreme Court.
throw out the old Miranda warning and write a new one.
agree to throw out all state laws regarding crime and impose national standards.
create clear standards to be applied fairly before imposing the death penalty.
Answers
Answer: D.create clear standards to be applied fairly before imposing the death penalty.
Explanation: The answer it's right there
The impact of Furman v. Georgia (1972) was that states had to
create clear standards to be applied fairly before imposing the death penalty.The Furman v. Georgia caseThis was a case that had to do with the cruel and the unusual way that people faced in the death penalty.
The case ruled that the death penalty was unconstitutional if it was applied in a discriminatory way.
It ruled that the eight amendment was being violated if used in this way.
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Linda earns $83,000 per year as an employee. How much will she pay this year in Social Security taxes
Answers
Answer: b.$5,146.00
Explanation:
Social security tax rate is 6.20%, you would multiply $83,000 by 0.062 to get a total of $5,146
A common tool used by events to reduce the potential for a lawsuit is A. holding parents responsible for their child's involvement in an event. B. employing volunteers as full-time employees. C. using a waiver and release of liability form. D. not allowing minors to participate in the event.
Answers
Answer:
C
Explanation:
A waiver is a documents that makes clear the related risks to an activity and protects one from liability that might occur as a result of undertaking such activities. The person undertaking the activity will need to sign a form that will release the other party from potential liability that could occur.
Similar to a waiver is the release of liability form which is a legal documents that prevents a party from suing another in the event of an accident for undergoing events that are inherently dangerous in nature.
Write two sentences that explain what this evidence tells you about Manjiro’s culture.
Answers
Manjiro presents a sword and short knife to his friend. The way that he and his friend talk about them show that they are important in Japanese culture.
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Answer: (sample)
Manjiro presents a sword and short knife to his friend. The way that he and his friend talk about them show that they are important in Japanese culture.
Explanation:
On Jan 1, 2020, Perquisites Inc. leased two automobiles from Sublime Autos Corp. The lease requires Perquisites Inc. to make 8 annual payments of $12.5 at the beginning of each year. The lease does not have any prepayments, lease incentives, or initial direct costs. The present value of the payments is $80 and the present value of the residual value is $14. Perquisites Inc. has agreed to guarantee the residual value of the cars. Sublime Autos Corp valued these cars at $88 in its inventory. It has recently sold similar cars for $92 each.
Record the journal entry for Sublime Autos's initial measurement of the lease on Jan 1, 2020. Select all that apply
Answers
The journal entry for Sublime Autos Corp. initial measurement of the lease on Jan 1, 2020 is as follows:Debit Lease Receivable: $80Credit Inventory: $70Credit Interest Revenue: $10
The initial measurement of the lease on Jan 1, 2020 for Sublime Autos Corp will beJournal Entry for Sublime Autos Corp.Accounts involved Debit CreditLease Receivable 80Inventory 70Interest Revenue 10
At the beginning of the lease, Sublime Autos Corp records the lease payments receivable and the present value of the residual value. There are no initial direct costs, lease incentives or prepaid lease payments in this case.
Here, the lease payments are $100 in total, and the present value of the payments is $80.
Therefore, the present value of the residual value will be $20 ($100-$80).
As Perquisites Inc has guaranteed the residual value of the cars, this is considered a part of the lease payments.
Sublime Autos Corp can value the cars at $88 in its inventory but as per the question, it recently sold similar cars for $92 each. So, the value of the cars will be $70 ($92 x 2 cars), as per the lower cost or market (LCM) rule.
The journal entry for Sublime Autos Corp. initial measurement of the lease on Jan 1, 2020 is as follows:Debit Lease Receivable: $80Credit Inventory: $70Credit Interest Revenue: $10
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The declaration and issuance of a stock dividend: A) Does not change retained earnings or paid-in capital. B) Does not change total assets, liabilities, or total stockholders' equity. C) Decreases assets and decreases total stockholders' equity. D) Decreases total stockholders' equity and increases common stock.
Answers
The correct response is D)
Lowering total stockholders' equity and raising common stock is the right answer.
When a company issues a stock dividend, it distributes additional shares of its common stock to its existing shareholders based on their current shareholdings. The issuance of a stock dividend results in a decrease in the retained earnings of the company, as the company is transferring a portion of its earnings to the shareholders in the form of additional shares. At the same time, the issuance of a stock dividend increases the company's common stock account. Common stock is a component of stockholders' equity and represents the portion of a company's equity that has been contributed by shareholders in exchange for ownership in the company. Therefore, the issuance of a stock dividend decreases the total stockholders' equity of the company, as it reduces retained earnings and increases common stock.The company's overall assets and liabilities are unchanged.
Complete Question
The declaration and issuance of a stock dividend:
A) Does not change retained earnings or paid-in capital.
B) Does not change total assets, liabilities, or total stockholders' equity. C) Decreases assets and decreases total stockholders' equity.
D) Decreases total stockholders' equity and increases common stock.
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"Profit plays an important role in the business." In the light of this statement,
Explain three reasons for the importance of profit in business.
Answers
Answer:
to secure financing from a bank
to attract investors to fund its operations
to grow the business itself
Explanation:
Neolithic people practiced metallurgy.
How did the advancement in technology. Benefit. Early humans
Answers
Answer:
the answer is D
Explanation:
Answer:
D. Metal was used to make stronger items that lasted longer
Explanation:
Did it on Edg.2020
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how to calculate cost of sales and gross profit
Answers
Before we dig into Home Safety... Why is home safety important to learn about? In what ways can being educated in
home safety help you as you begin to purchase a home, move into a new home, and observe new homes that you visited?
Answers
Answer:
so you cant die
Explanation:
how is a jingle different from a slogan
Answers
Answer:
A jingle is a short tune or phrase that is used to advertise a product or service. It is usually catchy, memorable and includes the product’s name or message. A slogan is a short, memorable phrase that is associated with a product or service. It is used to create an image in the public’s mind of what the product or service is about and is designed to create an emotional connection with the customer.
Explanation:
Answer:
Slogans are often shorter than jingles and do not have a melody.
Explanation:
What were jingles and slogans used for?
Jingles are an element of branding – Just as a brand's logo or tagline are a way to identify a brand with your eyes and ears, jingles are a uniquely identifiable audio clip that draws on consumers' hearing senses to identify your brand.