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makkiz [27]
3 years ago
6

Suppose investment spending increases by $50 billion and as a result the equilibrium income increases by $200 billion. the value

of the mpc is
Business
1 answer:
iren [92.7K]3 years ago
8 0
<span>The marginal propensity to consume (MPC) is the the change in consumption divided by change in income. Where change in in consumption = $50B and change in income = $200B. So we have 50/200 =1/4 = 0.25. So the MPC is $250M</span>
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Stock in CDB Industries has a beta of 1.10. The market risk premium is 7 percent, and T-bills are currently yielding 4 percent.
12345 [234]

Answer:

Cost of equity = 11.7%

Explanation:

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.</em>

Under CAPM, Ke= Rf + β(Rm-Rf)  

Rf-risk-free rate,-4%,  β= Beta-1.10, (Rm-Rf) = 7% ,Ke = cost of equity

Using this model,  

Ke=4% + 1.10×7%

= 11.7 %

Cost of equity = 11.7%

3 0
3 years ago
A(n) _______________, if signed by a majority of the members of the house of representatives, will pry a bill from committee and
Dmitriy789 [7]
<span>A petition that, if signed by a majority of the members of the House of Representatives, will pry a bill from committee and bring it to the floor for consideration.

A discharge petition!</span>
7 0
2 years ago
Given the following information about Elkridge Sporting Goods, Inc., construct a balance sheet for June 30, 2013. On that date t
OLga [1]

Answer:

<em>Retained Earnings = 109,909</em>

Explanation:

\left[\begin{array}{cccc}cash&25,135&AP&67,855\\AR&43,758&NP&36,454\\inventory&172,500&Long-term&222,300\\fixed \:assets&332,300&Common\: Stock&150,000\\other \: assets&13,125&RE&110,209\\Total Assets&586,818&Total L+E&586,818\\\end{array}\right]

<u>First </u>

We add all the assets together. 586,818

<u>Then</u>

we add the lliabilities and common stock. 476,909

<u>Finally</u>

We use the accounting equation to solve for RE

Assets = Liab + Equity

586,818 = sum of liab and equity accounts

we know that all the accounts, except RE add to 476,909

586,818 = 476,909 + RE

586,818 - 476,909 = RE

RE = 109,909

5 0
3 years ago
Explain the "income tax"<br><br> in your own words please
Zolol [24]
The money a person gains after paying a citizens fee ( or for owning property or a building).

Please vote my answer branliest!
6 0
3 years ago
You want to be a millionaire when you retire in 40 years.
Sedaia [141]

Answer:

a. FV = $1,000,000

rate = 9.7%

n = 40 periods

FVIFA = [(1 + 0.097)⁴⁰ - 1] / 0.097 = 407.9960231

annual savings = $1,000,000 / 407.9960231 = $2,451.00

b. FV = $1,000,000

rate = 9.7%

n = 30 periods

FVIFA = [(1 + 0.097)³⁰ - 1] / 0.097 = 155.4306295

annual savings = $1,000,000 / 155.4306295 = $6,433.74

FV = $1,000,000

rate = 9.7%

n = 20 periods

FVIFA = [(1 + 0.097)²⁰ - 1] / 0.097 = 55.35978429

annual savings = $1,000,000 / 55.35978429 = $18,063.65

7 0
2 years ago
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