Answer: The Ricardian equivalence theorem states that
: <u>"A. an increase in the government budget deficit has no effect on aggregate demand."</u>
Explanation: Ricardian Equivalence establishes that when the government increases the expenses financed with debt to try to stimulate the demand, this increase of the expenses does not produce any change in the demand.
This happens because the increases in the public deficit will be higher taxes in the future. Therefore, taxpayers reduce their consumption and increase their savings in order to offset the cost that will be the future tax increase.
Answer:
h = 28/πr² or 28/(π((14/π)^⅔))
r = (14/π)^⅓
Explanation:
Given
Let r = radius, h = height of the cylinder
Volume, V =28in³
V = πr²h ----- volume of a cylinder
πr²h = 28 --- make h the subject of formula
h = 28/πr²
Area of the the cylinder is;
A = 2πr² + 2πrh
Substitute 28/πr² for h to get area in terms of radius
A = 2πr² + 2πr(28/πr²)
A = 2πr² + 56/r
Differentiate A with respect to r
dA/dr = 4πr - 56/r²
Set dA/dr to 0 (.....using the least amount of metal)
4πr - 56/r² = 0
(4πr³ - 56)/r² = 0 --- Multiply through by r²
4πr³ - 56 = 0
4πr³ = 56 --- make r the subject of formula
r³ =56/4π
r³ = 14/π
r = (14/π)^⅓
h = 28/πr²
h = 28/(π((14/π)^⅔))
Answer:
After tax price paid by consumers
Supply function n terms of price;
P = Q / 20
P = 0.05Q
Add the tax;
P = 0.05Q + 4
Demand function in terms of price is;
Q = 360 – 10P
P = (Q - 360) / -10
Price will be;
Demand = Supply
(Q - 360) / -10 = 0.05Q + 4
36 - 0.1Q = 0.05Q + 4
0.15Q = 32
Q = 213
After tax price = 36 - 0.1Q
= 36 - 0.1 * (213)
= $14.70
Gross price for ticket sellers is;
= Price - tax
= 14.7 - 4
= $10.70
Consumer and Producer tax burden.
Without tax, price is;
36 - 0.1Q = 0.05Q
0.15Q = 36
Q = 240
P = 36 - 0.1 * 240
= $12
Consumer tax burden = 14.70 - 12 = $2.70
Producer tax burden = Tax - consumer tax burden = 4 - 2.7 = $1.30
Answer:
$52.89
Explanation:
To calculate the present value of a stock, we use the formula,
<u>D + E</u>
(1 + R)^Y
where, D = expected dividend, $4.35
E = expected stock price, $57
R = real rate of return, 16% or 0.16
Y = Number of years, 1
we have,
<u>$4.35 + $57</u>
(1 + 0,16) ^1 = $61.35 ÷ 1.16
= $52.887 ≈ $52.89.
The present value of the stock is $52.89.
Cheers.
