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Dahasolnce [82]
3 years ago
5

Assume that the following data characterize a hypothetical economy: money supply $200 billion; quantity of money demanded for tr

ansactions $150 billion; quantity of money demanded as an asset $10 billion at 12 percent interest, increasing by $10 billion for each 2-percentage-point fall in the interest rate. a. What is the equilibrium interest rate? Explain. b. At the equilibrium interest rate, what are the quantity of money supplied, the total quantity of money
Business
1 answer:
Whitepunk [10]3 years ago
7 0

Answer:

A. The interest rate is 4 percent.

B. The amount of money supplied is 200 bilion dollars and the equilibrium quantity demanded is 200 bilion dollars.

Explanation:

A. To answer this questions you use the table below. The first column is the interest rate. The second column is the quantity of money demanded as an asset at each rate. The third column is the quantity of money demanded for transactions, which is independent of the interested rate. The fourth column is the actual (total) quantity of money demanded at each interest rate, which is the sum of columms 1 and 2. The fifth column is the quantity of money supplied at each interest rate. You wil find the equilibrium interest rate by equating the quantity supplied with the quantity demanded, which occurs at the interest rate of 4 percent.

B. It also follows from the answer above that the equilibrium quantity of money supplied is 200 bilion dollars and the equilibrium quantity demanded is 200 bilion dollars. You can decompose the quantity demanded into its separate components, where the amount of money demanded for transactions is 150 billion dollars and the amount of money demanded as an asset is 50 billion dollars.

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In one year, Hitech Microdevices will pay a common stock dividend of $4.35. You predict that you will be able to sell your Hitec
Andre45 [30]

Answer:

Price to be paid now = $52.89

Explanation:

<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>

T<em>he stock would be held for just a period, hence we would use the single period return model. This is given as follows:</em>

Price now  = D/(1+r) + P×(1+r)

Dividend , r - rate of return, P -year-end price of stock

Dividend = 4.35, r-16%, P- 57

Price = 4.35/(1.16)  + 57/(1.16)= $52.89

Price to be paid now = $52.89

7 0
3 years ago
Whats the estimate sum for 3/56+8/9
valentinak56 [21]
You can make 9 into a fraction with the denominator of 56.

8/9= 48/56 (multiply both by 6)

Just add three to the numerator. We can round 48 to 50, so:

50/56+3/56= 53/56 That would be the estimation.

I hope this helps!
~kaikers
4 0
3 years ago
Consider Derek's budget information: materials to be used totals $65,100; direct labor totals $198,700; factory overhead totals
egoroff_w [7]

Answer:

cost of goods manufactured= $653,500

Explanation:

Giving the following information:

Consider Derek's budget information: materials to be used totals $65,100; direct labor totals $198,700; factory overhead totals $393,700; work in process inventory January 1, $188,500; and work in progress inventory on December 31, $192,500.

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 188,500 + 65,100 + 198,700 + 393,700 - 192,500= $653,500

5 0
3 years ago
The Occupational Safety and Health Act (OSHA) mandated that first-aid kits be available in business establishments employing mor
Galina-37 [17]

Answer:

The correct answer is D

Explanation:

OSHA stands for Occupational Safety and Health Act, which is passed in order to encourage the safer workplace conditions in the U.S. They set the standards as well as perform the inspections at the job sites.

OSHA made mandatary the first aid kits to be available in the business who are employing more than 3 years people. So, this newly formed company was successful in developing the kits, this is example of the government regulations as a source for the ideas of the new products.

3 0
3 years ago
Interest is eligible to be capitalized as part of an asset's cost, rather than being expensed immediately, when:
Lelu [443]

Answer:

The Asset is a Qualifying Asset.

Explanation:

Qualifying Assets take substantial period of <em>time</em> to get ready for its intended use and purpose and that will require capitalizing interest costs or borrowing cost to the asset.

4 0
3 years ago
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