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2 years ago

A decrease in investment spending at each price level will shift the aggregate ______.

Business

1 answer:

salantis [7]2 years ago

8 0

Answer:

A decrease in investment spending at each price level will shift the aggregate demand curve to the left

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Iteru [2.4K]

The answer to your question is B.

8 0

2 years ago

For what eccentricity is the secondary focus (which is usually empty) located at the sun? What is the shape of this orbit?

saul85 [17]

Answer:

The eccentricity, denoted by e, is defined as that fraction of an ellipse size which causes the focus to move away from the center. When an ellipse has an eccentricity of zero, this means that the focus and the center are in one same place. Thus the eccentricity of the secondary focus located at the sun is zero when located at the sun. Thus with an eccentricity of zero, the focus and center will be at same place therefore making the shape of the orbit to be a perfect circle.

Explanation:

5 0

2 years ago

You are set to receive an annual payment of $12,100 per year for the next 17 years. Assume the interest rate is 7 percent. How m

uranmaximum [27]

Answer:

The difference in value is worth $8,269 more in money.

Explanation:

Case 1. Payments are made at the end of each year

So here, we will use the annuity formula for computing the present value of payments that we are receiving at the end of each year.

Here

Annual Cash flow is $12,100

Interest Rate "r" is 7%

And

Number of Payments "n" will be 17

Present Value = Cash flow * [1 - 1 / (1+r)^n] / r

By putting values, we have:

Present Value = $12,100 * [1 - 1 / (1 + 7%)^17] / 7%

Present Value = $12,100 * 9.763223

Present Value = $118,135

Now

Cash 2. Payments are arising at the start of each year

Just like the case above, we will use the annuity formula for computing the present value of payments that we are receiving at the start of each year. The first payment will be at worth the same because it is received in today's price.

Present Value = Cash flow + Cash flow * [1 - 1 / (1+r)^n] / r

So by putting values, that were used in case 1, we have:

Present Value = $12,100 + $12,100 * (1 - (1/1.07)^16) / 0.07

Present Value = $12,100 + $12,100 * 9.446649

Present Value = $126,404

Difference in Present Value = PV of Case 1 - PV of Case 2

= $126,404 - $118,135 = $8,269

The difference in value is worth $8,269 more in money.

4 0

3 years ago

The nominal interest rate in Fiji is 3%, while the nominal interest rate in the U.S. is 5%. Real interest rates in both countrie

Aloiza [94]

Answer:

1.98%

Explanation:

The computation is shown below:-

As we know that

PPP equation i.e

Nominal Interest rate = Real interest rate + Inflation rate

Now

The Inflation rate for Fiji is

= 5% - 2%

= 3%

And, the Inflation rate for US is

= 3% - 2%

= 1%

As we can see that the inflation rate for Fiji is more than the inflation rate for US so we should be depreciated the currency by considering the inflation differential which is shown below:

= (1 + 3%) ÷ (1 + 1%) -1

= 1.98%

8 0

2 years ago

The monthly demand q for a monopolist firm's product in a certain market (measured in 1000s of units) is related to the price pe

Gnesinka [82]

Answer: (b) -3.08

Explanation:

The relationship between the demand(q), price per unit product(p) and the disposable income,yd is given by the expression below;

q= 20ln(7yd-2p).

From the expression above, the marginal demand,

∂ q/∂ p is the differential of the equation of relationship between the demand, price and disposable income.

This involves considering the demand,q as the dependent variable and the price per unit product,p as the independent variable and the disposable income,yd is considered constant.

Therefore ,

∂ q/∂ p= (-40)÷(7yd-2p)

By substitution of

yd =$3000÷1000= $3

and p= $4

∂ q/∂ p= (-40)÷((7×$3)-(2×$4))

∂ q/∂ p= -40÷13= 3.08

Please see the attachment for knowledge on how ∂ q/∂ p was obtained.

7 0

2 years ago