HERE IS/ARE THE FULL QUESTION(S):
The small island nation of Kaboom is a simple economy with no government, no taxes, and no imports or exports. Kaboomers (citizens of Kaboom) are creatures of habit. They have a rule that everyone saves exactly 40 percent of income. Assume that planned investment is fixed and remains at 225 million Kaboomian dollars. Further assume that autonomous consumption (independent of Y) is zero, so consumption (C) is MPC times Upper YMPC×Y.
The following data are estimates for the island of Kaboom:
bullet• Real GNP (Y): 422 million Kaboomian dollars
bullet• Planned investment spending (I):225 million Kaboomian dollars
You are asked by the business editor of the Explosive Times, the local newspaper, to predict the economic events of the next few months.
Based on the data given, you predict inventories will DECREASE and the level of real GNP will INCREASE.
Things will stop changing when SAVINGS EQUAL INVESTMENT.
Kaboom's economy will reach equilibrium when its real GNP = 563 MILLION Kaboomian dollars
Answer:
e) perfectly elastic
Explanation:
Elasticity is a measure of the sensitivity of demand to the price of a product. If demand is elastic, bidders should avoid raising prices as demand decreases considerably. Conversely, when demand is inelastic, consumers are less sensitive to price changes. When demand is perfectly elastic, this means that a slight increase in the price of a good will cause all demand to flow to a competing supplier. This is observed in competitive markets where providers provide the same type of good for the market price. If one of them raises the price, he loses all of his market share. This is because consumers are rational and will buy the product that is offered at the lowest possible price.
Answer:
The cost of equity is 9.91%
Explanation:
The constant growth model of the DDM is used to calculate the price of the share or the fair value per share based on a constant growth in dividends and the required rate of return which is also known as cost of equity.
Plugging in the available values in the formual we can calculate the cost of equity or the required rate of return.
73.59 = 4.57 / (r - 0.037)
73.59 * (r - 0.037) = 4.57
73.59r - 2.72283 = 4.57
73.59r = 4.57 + 2.72283
r = 7.29283 / 73.59
r = 0.0991 or 9.91%
Answer:
A contractual marketing system
Explanation:
Java Jane's most likely adopted a contractual marketing system.The contractual system is a vertical marketing system in which all the companies involved tend to work independently as individual entities. Regardless of working independently, they also work together to achieve greater goals and efficiencies.
They are also known as value-added partnerships since they work hand in hand to create value for other entities that are involved
The text alignment is called justified
