Answer:
$50 million
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
An economy is closed if it doesn't trade with other countries.
GDP = Consumption spending + Investment spending + Government Spending
$750 million = $300 million + Investment spending + $400 million
Investment spending = $50 million
I hope my answer helps you
Answer:
The inflation rate is different using the two methods as the rate of inflation calculated by the CPI holds basket of goods and services constant while the GDP deflator allows it to change.
Explanation:
i. Value of market basket of the good in 2020 = ($50*2) + ($5*6) = $130
Value of market basket of the good in 2021 = ($70*2) + ($6*6) = $176
CPI in 2020 = ($130 / $130) * 100 = 100
CPI in 2021 = ($176 / $130) * 100 = 135.38
Thus, The percentage change in overall price level is = [(135.38 - 100) / 100) * 100 = 35.38%
ii. Nominal GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300
Nominal GDP in 2021 = ($70 * 21) + ($6 * 80) = $1950
Real GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300
Real GDP in 2021 = ($50 * 21) + ($5 * 80) = $1450
GDP deflator in 2020 = (Nominal GDP in 2107 / Nominal GDP in 2107) * 100 = ($1300 / $1300) * 100 = 100
GDP deflator in 2021 = (Nominal GDP in 2108 / Nominal GDP in 2108) * 100 = ($1950 / $1450) * 100 = 134.48
Thus, the percentage change in overall price level is = [(134.48 - 100) / 100) * 100 = 34.48%
Answer:
Answer for the question:
is given below.
Explanation:
1. P ( X < 76 ) = 1 - P ( X > 7 6 ) = 1 - 0 . 1 0 = 0 . 9 0
2. P ( X < 2 8 ) = 1 - P ( X > = 2 8 ) = 1 - P ( 2 8 < = X < = 7 6 ) - P ( X > 7 6)
= 1 - 0 . 2 2 - 0 . 1 = 0 . 6 8
3. P ( X = 7 6 ) = 0 because in case of continuous probability , probability of finding a particular value is close to zero
Answer:
10.4%
Explanation:
The formula to calculate the cost of equity is:
Cost of equity= (DPS/MPS)+r
DPS= Dividend per share
MPS= Market price per share
r= Growth rate of Dividends
Cost of equity= (2.77/40.12)+0.0350
Cost of equity=0.069+0.0350
Cost of equity=0.104→ 10.4%
The company's cost of equity if the current stock price is $40.12 per share is 10.4%.