To a macroeconomist savings occurs when a person's income exceeds his consumption while investment occurs when a person or firm purchases new capital such as a house or business equipment.
It will definitely decrease.
Answer: Decrease.
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Answer:
Beta is 0.85
Explanation:
The value of Beta can de derived from the CAPM formula of expected return
expected return=risk-free rate+Beta*market risk premium
expected return is 10.2%
risk-free rate is 4.10%
market risk premium is 7.2%
Beta is unknown
10.20%=4.10%+Beta*7.20%
10.20%-4.10%=Beta*7.20%
6.10%
==Beta*7.20%
Beta=6.10%
/7.20%
Beta= 0.85
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Unitary cost:
Variable Costs= $50
Fixed Costs= $25
A special order for 1,000 units has been received from a foreign company. The unit price requested is $55.
If the order is accepted, unit variable costs will increase by $2 for additional freight costs.
Because it is a special offer, we will not take into account the fixed costs.
Unitary cost= 50 + 2= $52
Effect on income= 1,000*(55 - 52)= $3,000 increase
