When there is an increase in government spending, there will be an increase on the output, price level, and interest rates
<h3>What is a
government spending?</h3>
This refers to the funds injected to the public sector on the acquisition of services such as education, healthcare, social protection, defense etc.
Most time, the effect of an an increase in government spending leads to an increase on the output, price level, and interest rates as it is a method of stimulate demand.
Therefore, the Option A is correct.
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Answer:
Production Oriented or Mass Production Era.
Explanation:
This marketing era took place around the mid 1800s and lasted until the early 1920s. It was basically a result of the industrial revolution where mass production started and manufacturing costs started to decrease. Most businesses would produce only one or very few types of products, and most business people thought that if they were to manufacture something, someone would buy it. Since this type of mass production was something totally new, people had lots of products available and relatively cheap for the first time, and indeed most of the production was sold that way.
Answer:
The Required Return is 10.82%.
Explanation:
The Dividends Model for the Constant Growth is given below:
P0 = D1 / (Ke - g)
Arranging the above equation for "Ke", that is the Required Return:
⇒ Ke = (D1 / P0) + g
Putting Values and we get:
Required Return = Ke = (2.34 / 37) + .045 = .1082 = 10.82%.
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Answer:
$157,300
Explanation:
The computation of the interest capitalized is as follows:
= Accumulated expenditure × rate of interest
= ($610,000 × 12 months ÷ 12 months) + ($1,800,000 × 4 months ÷ 12 months) + 0 × 13%
= ($610,000 + $600,000) × 13%
= $1,210,000 × 13%
= $157,300
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Full question:</u></h3>
A linear regression to estimate the relation between General Motors' stock returns and the market's return gives the best fitting line that represents the relation between the stock and the market. The slope of this line is our estimate of ________.
A) alpha
B) beta
C) risk-free rate
D) volatility
<h3><u>
Answer:</u></h3>
A linear regression to estimate the relation between General Motors' stock returns and the market's return gives the best fitting line that represents the relation between the stock and the market. The slope of this line is our estimate of beta
<h3><u>
Explanation:</u></h3>
Beta is a broadly applied amount in investment commentary. In economics, the beta of a firm applies to the subtlety of its heritage price concerning an average or benchmark. SLOPE which describes the linear regression implemented among the two variables.
Manipulating beta tacts can be beneficial as a member of a wider investment strategy to restrain downside risk or accomplish short-term gains, but it's essential to retrieve that it is also controlled to the same levels of market levity as any other trading strategy. A beta may yield varying results because of the fluctuations in determining it, such as various periods practiced to estimate data.