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Montano1993 [528]
3 years ago
13

"in a small european​ country, it is estimated that changing the level of capital from​ $8 million to​ $10 million will increase

real gdp from​ $2 million to​ $3 million. what level of gdp would you expect the economy to be able to reach if spending on capital continued to rise to​ $12 million, assuming no technological change and no change in the hours of​ work?"
Business
1 answer:
lawyer [7]3 years ago
6 0
I think it’s 12mill I think
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What happens to the price of a three-year annual coupon paying bond with an 8% coupon when interest rates change from 8% to 6.85
ruslelena [56]

Face Value of bond = $1000

Annual Coupon Payment = $1000*8%

= $80

No of years to maturity(n) = 3 years

When the Market Interest rate was 8%, the Price of the bond will be the same as the Par value which is $1000 because when the Coupon rate and Market Interest rate are the same the Bond sells at par Value.

So, At an 8% Interest rate price is $1000

- Interest rate(YTM) changed to 8.86%

Calculating the Price of Bond:-

Price = \frac{CouponPayment}{(1+YTM)^{1}}+\frac{CouponPayment}{(1+YTM)^{2}}+...+\frac{CouponPayment}{(1+YTM)^{n}}+\frac{FaceValue}{(1+YTM)^{n}}

Price = \frac{80}{(1+0.0886)^{1}}+\frac{80}{(1+0.0886)^{2}}+\frac{80}{(1+0.0886)^{3}}+\frac{1000}{(1+0.0886)^{3}}

Price =$203.008 + $775.166

Price = $978.17

So, when the Interest rate changed to 8.86% the price falls to $978.17

Change in Price due to increase in Interest rate = $978.17 - $1000

= -$21.83

Hence, the price decreased by $21.83

Learn more about interest here

brainly.com/question/2294792

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7 0
2 years ago
Sasha, a production manager at ZestCorp Inc., must predict future labor demand using information about inventory levels from the
Olegator [25]

Answer:

Trend Analysis

Explanation:

Trend analysis pertains to categorizing and assigning statistical prototypes that indicate labor demand for the next business year. That is, forecasting your future labor need from past experience and statistical data. This gives Sasha a reasonable objective statistics from the past 3years which she will base her forecast on for the next year. These statistics are also called leading indicators. In this technique. Sasha is utilizing trend analysis to anticipate labor demand.

8 0
3 years ago
Teleperformance​ (teleperformance.com) established a competitive advantage by adopting information security practices that inclu
Veseljchak [2.6K]
I have no clue sorry
6 0
3 years ago
Suppose for a given consumer the marginal utility (MU) of a pizza is 100 utils and the MU of a hamburger is 80 utils, and that t
NemiM [27]

Answer:

<u>is not</u> , <u>consume more of hamburgers</u>

Explanation:

A consumer is said to have achieved equilibrium when within his budget constraint, he purchases that combination of two goods which yield maximum satisfaction to him.

The equation for consumer equilibrium for two products is given by

\frac{MU_{x} }{P_{x} } = \frac{MU_{y} }{P_{y} }

In the given case, \frac{MU_{x} }{P_{x} } = \frac{100}{15} = \frac{20}{3} = 6.666

                            \frac{MU_{y} }{P_{y} } = \frac{80}{10}    = 8

wherein, x= pizza

              y= hamburger

As is evident, the marginal utility per dollar spent is greater in case of a hamburger, the consumer is not in a state of equilibrium.

Thus, he should consume more units of Hamburgers in order to maximize his utility.

3 0
3 years ago
he following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.0 hours S
Arisa [49]

Answer:

Direct labor rate variance= $2,430 favorable.

Explanation:

Giving the following information:

Standard labor rate $ 15.10 per hour

Actual hours worked 8,100 hours

Actual total labor cost $ 119,880

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 119,880/8,100= $14.8

Direct labor rate variance= (15.1 - 14.8)*8,100= $2,430 favorable.

<u>It is favorable because the actual rate for direct labor was lower than the estimated rate.</u>

4 0
3 years ago
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