Answer: A. output, investment, and depreciation will decrease and consumption will increase and then decrease but finally approach a level above its initial state.
Explanation: from the above question, an economy that is in a steady-state with no population growth or technological change and the capital stock is above the Golden Rule level and the saving rate falls then output, investment, and depreciation will decrease and consumption will increase and then decrease but finally approach a level above its initial state.
Answer:
<u>revenues = 1,201,100</u>
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Explanation:
beginning 421,000
+net income (revenues - 1,204,000)
- dividends 82,100
ending 336,000
421,000 + (r-1,204,000) - 82,100 = 336,000
revenues = 336,000 + 82,100 + 1,204,000 - 421,000
<u>revenues = 1,201,100</u>
Answer:
Profit maximising price = 48
Explanation:
Total Cost : C (x) = 8x + 3
Demand Curve : p (x) = 88 − 2x
Total Revenue = p (x). x = x (88 - 2x) = 88x - 2x^2
Profit maximisation is where Marginal Cost (MC) = Marginal Revenue (MR)
MC = d TC / d Q = d (8x + 3) / d x = 8
MR = d TR / d Q = d (88x - 2x^2) / d x = 88 - 4x
Equating MR & MC ,
88 - 4x = 8 , 88 - 8 = 4x
x = 80 / 4 , x = 20
Putting value in demand curve,
p = 88 - 2x = 88 - 2 (20) = 88 - 40
p = 48
Answer:
Actual Yiel to maturity is 9.3%
Explanation:
Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.
Face value = F = $1,000
Coupon payment = $1,000 x 4% = $40
Selling price = P = $785
Number of payment = n = 5 years
Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
Yield to maturity = [ $40 + ( $1,000 - $785 ) / 5 ] / [ ( 1,000 + $785 ) / 2 ]
Yield to maturity = [ $40 + $43 ] / $892.5 = $83 /$892.5 = 0.0645 = 0.093%
