Answer:
If the U.S. is an open economy real GDP will decrease by more than in a closed economy.
Explanation:
Federal fund rate is the rate of depository fund which banks pay overnight. The rise in fed will cause the banks to pay more interest on the mandated reserve. If the interest rates are increased the real GDP will decrease because there will be reduced investments, less spending and consumption which leads to declined net exports. These all factors lead to decline in the Real GDP of U.S.
Answer:
$45; $50
Explanation:
Given that,
Quantity sold (at price = $50 per bottle) = 10 bottles of champagne
Quantity sold (at price = $45 per bottle) = 11 bottles of champagne
Therefore,
Quantity effect (keeping the price unchanged):
= (11 - 10) × $45
= $45
Price effect (keeping the quantity unchanged):
= ($45 - $50) × 10
= - $50
Hence, total revenue experiences an increase of $45 and a decrease of $50.
Answer:
Thank you for the points ^-^
Explanation:
Answer:
0.175 or 17.5%
Explanation:
The calculation of the cost of common equity is shown below:-
WACC = Weight of Equity × Cost of Equity + Weight of Debt × ( 1- Tax rate) × Cost of Debt
0.13 = (0.55 × Cost of equity) + ((0.45 × (1 - 0.25) × 0.10)
0.13 = (0.55 × Cost of equity) + 0.045 × 0.75
(0.55 × Cost of equity) = 0.13 - 0.03375
(0.55 × Cost of equity) = 0.09625
Cost of equity = 0.09625 ÷ 0.55
= 0.175
Therefore for computing the cost of equity we simply applied the above formula.
The cheapest mode of transport would be to travel by bus.
<h3>What determines the choice </h3>
The choice between airplane and the bus would depend on the total income the individual would earn. This is known as opportunity cost.
If the individual travels by plane, it would cost $90. The income the individual would lose would be ($6 x 1) = $6.
If the individual travels by bus, it would cost $30. The income the individual would lose would be ($6 x 5) = $30. Thus, the person would choose to travel by bus.
To learn more about opportunity cost, please check: brainly.com/question/13036997