Suppose you find that prices of stocks before large dividend increases show on average consistently positive abnormal returns. i
1 answer:
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Answer:
hello below is the missing diagram needed for the question
answer : point B
Explanation:
when there is a technological innovation that increases the demand for investment and goods the real interest rate,savings and investment will take a positive outlook i.e take a shift to the right , this is due to the increase in investment and a corresponding increase in demand by consumers
Technological innovation are very vital for the expansion of production by companies and firms who provide either goods or services
Answer:
Explanation:
U(C, L) = (C – 100) × (L – 40)
(a) C = (w - t)[110 - L] + 320
C = 10[110 - L] + 320
C + 10L = 1420
where,
C- consumption
w - wages
t - taxes
L - Leisure
(b) Given that,
L = 100 then,
C = 420
= 5.33
(c) L = 110
C = 320
Reservation wage:
= 3.14
(d) At optimal level,
C - 100 = 10L - 400
C - 10L = -300
C = 10L - 300
Using budget constraint:
C + 10L = 1420
10L - 300 + 10L = 1420
20L = 1720
L* = 86 and C* = 560