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4 years ago

What would happen to autonomous consumption if household debt fell and the interest rate rose over the same time period?

1 answer:

4 0

<span>The autonomous consumption is lessened as the person tends to spend cash lured by higher interest amount. It is made by expenses of the household part that are not greatly affected by the level of salary or manufacture. This is one of two basic classifications of consumption. Another one is that it will bring consumption, expenses consumption that are created on the level of salary or manufacture. </span>

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Naomi has a home loan amount of $120,000. Her monthly principal and interest payment is $679.00 for thirty years. How much inter

Viktor [21]

Answer:

$124,440

Explanation:

Given a monthly principal and interest payment of $679, over the 30 year period, Naomi would have paid back

$679 * 30 year * 12 months in a year

= $244,440

With a loan amount of @120,000, the interest portion of the total repayment is therefore = total repayment less the loan amount

= $244,440 - $120000

= $124,440.

8 0

3 years ago

MacKenzie Company sold $640 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 5.5% serv

Ne4ueva [31]

Answer and Explanation:

The Journal entry is shown below:-

Cash Dr, $604.80 ($640 × 5.5%)

Card Expense $35.20

To Sales $640

(Being sale is recorded)

Here we debited the cash and expenses as assets are increasing also it increased the expenses On the other hand it also increased the sales. Also assets and expenses contains normal debit balance and the sales revenue contains normal credit balance

6 0

3 years ago

Consider a 7-year bond with a 9% coupon and a yield to maturity of 12%. If interest rates remain constant, one year from now the

Llana [10]

Answer:

(C) Higher.

Explanation:

The computation of the present value in both the cases are as follows:

In the first case

Given that

Assume the par value i.e. future value be $1,000

PMT = $1,000 × 9% = $90

RATE = 9%

NPER = 7

The formula is shown below

=-PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $863.09

In the second case

Given that

Assume the par value i.e. future value be $1,000

PMT = $1,000 × 9% = $90

RATE = 9%

NPER = 6

The formula is shown below

=-PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $876.66

So as we can see that the price of the bond would increased

5 0

3 years ago

The manager of the local branch of a bank in College Station is offered a transfer to Austin. This person is guaranteed a salary

Reil [10]

Answer:

Correct option A

Explanation:

Pareto efficiency implies that resources are allocated in the most economically efficient manner, but does not imply equality or fairness.

The manager at the local branch has offered transfer to Austin, this simply implies that the resources spent on Austin will be reallocated to other areas.

Therefore, this will make the manager better off with the transfer and not worse off.

7 0

3 years ago

Caitlin invested money in two mutual funds – a stock fund and a balanced fund. She invested twice as much in the stock fund as i

lora16 [44]

Answer:

$6,686

Explanation:

The computation of the amount invested in each fund is shown below:

Let us assume the balanced fund be x

Now the stock fund is 2x

And, the total gain is $1,270.34

So, the equation that could be made is

0.04x + 0.17(2x) = $1,270.34

0.04x + 0.34x = $1270.34

0.38x = $1270.34

x = $1,270.34 ÷ 0.38

x = $3,343

The balanced fund is $3343

So,

The stock fund is

= $2 × $3343

= $6,686

7 0

3 years ago