Answer:
INCREASED INTEREST RATES WHICH REDUCES PRIVATE SPENDING.
Explanation:
Crowding out occurs when government increases its spending thus leading to a drop in private spending. It is a deliberate government policy to push out private spending so as to create more funds for loans. This then results in increased interest rates.
Answer:
It is true that a positive optimum tariff exists for the United States because it is a large country when compared with its international partners.
If the United States uses its size and positive optimum tariff advantage to impose tariffs on imports, other countries are likely to retaliate by following its footsteps. This does not benefit any country in the long run.
Every forward-looking country that appreciates the benefits of free trade to its citizens is always careful to impose the optimum tariff on imports.
Explanation:
A tariff-imposing nation that is large enough to make some impactful difference in its welfare by imposing an optimum tariff will surely harm its partners so greatly that it will attract some retaliatory moves by the other nations. Likewise, a zero-tariff policy is counter-productive to the public interest as it harms the U.S. productive sector, jobs, and gross domestic product. This then calls for a balance and a cost minimization strategy.
Answer:
18,375
Explanation:
I'm not sure what kind of currency P is, but the calculations should be the same as if they were dollars.
future value for simple interest = principal x interest rate x time = 15,000 x 9% x 2.5 years = 3,375 (interests only)
the total amount of interests + principal = 15,000 + 3,375 = 18,375
the difference between simple and compound interest is that when interests compounds, earned interest will start earning more interest themselves. While when calculating simple interest, interests only accumulate but do not earn any further interests. E.g. the future value of this debt using compound interest = 15,000 x 1.09²°⁵ = 18,606.19
Answer:
D) Value of property
Explanation:
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Answer:
$4,458.90
Explanation:
Step 1 : Determine the cashflow
The cashflows for the machine are as follows :
Year 0 = - $18,000
Year 1 = $10,000
Year 1 = $10,000
Year 1 = $10,000
Step 2 : Calculate the net present value
Based on the Discounting rate of 16 % the Net Present Value will be calculated using the CFj Function of a Financial Calculator :
- $18,000 CFj
$10,000 CFj
$10,000 CFj
$10,000 CFj
I/Yr = 16 %
therefore,
Shift NPV = $4,458.90
