Answer:
a. AD curve will shift to the right
b. AD curve will shift to the left
c. Movement along the AD curve.
Explanation:
a. When firms become more optimistic and increase their spending on machineries,this brings about changes in investment and it will cause a shift to the right in the aggregate demand curve.
b. When The federal government increases taxes in an attempt to reduce a budget deficit. This will cause a change in consumption as people will have less money to spend since disposable income has been reduced, and it will cause the aggregate demand curve to shift inwards to the left.
c. A 4 percent in US inflation will bring about a change in price level and there will be a movement along the aggregate demand curve.
Answer:
The correct option is A, abnormal price change at the announcement
Explanation:
Abnormal price increase before the announcement would only be the case if the there was insider dealing, that is there exists information leakage.
An abnormal price decrease cannot be the case, the market prices a share based on its earnings' strength, in other words a stock with high dividends prospect is priced high.
Option D is wrong there would a price change stemming from the announcement made about large cash dividends payout
Choose to do nothing about the problem is always a course of action.
Answer:
The interest on investment of $9000 and $1000 is 5.41 % and 4.81% respectively.
Explanation:
Let i be the interest rate on $ 9000 investment, then
9000i + 1000(i -0.006) = $ 535
10,000i = 541
i = 5.41 % on investment of $ 9000.
than on $1000 investment interest = 5.41-0.6 = 4.81 %