Answer:
G = $20 Billion
Explanation:
Given that
C = $60 billion
GDP = $100 billion
Gross Investment = $30 billion
Net export = $10 billion
Recall that
GDP = C + Ig + G + Xn
Therefore
G = GDP - ( C + Ig + Xn )
G = 100 - ( 60 + 30 + [-10])
G = 100 - (90 - 10)
G = 100 - 80
G = 20
Thus, government expenditure is $20 billion.
Answer:
False
Explanation:
If the demand is uncertain, if you use average demand to calculate the economic order quantity (EOQ), you will have a high probability of a stock-out occurring.
EOQ = √(2DS / H)
where:
D = annual demand in units
S = order cost per purchase order
H = holding cost per unit, per year
If D is uncertain, then the whole calculus will either be understated or overstated.
Answer: Interpleader
Explanation:
The broker just engaged in an Interpleader action which is an action that allows a person who does not own a certain property to get the claimants to the property to go to court for it. The Court will then decide who should get the property after proceedings.
The Broker does not own the deposit but seeing as he did not want to get into trouble with either the Seller or the Buyer, he put the deposit with the courts so that they would decide who owns the deposit.
Available Options Are:
a) higher sensitivity to changes in the interest rate, or
b) lower sensitivity to changes in the interest rate
Answer:
Option A. Higher sensitivity to changes in the interest rate
Explanation:
The reason is that the tax cut will encourage foreign investment and this increase in Foreign Investment will increase the GDP but by small amount. However, the higher interest rate in an economy always raises additional money in an economy which companies invest to purchase the new GDP. Thus the GDP growth is highly sensitive to changes in interest rate.
Answer:
The present worth of the cost savings if the company uses an interest rate of 15% per year on such investments is $442108.5079.
Explanation:
Present Worth = $100,000/(1 + 15%) + $100,000/(1 + 15%)^2 + $100,000/(1 + 15%)^3 + $200,000/(1 + 15%)^4 + $200,000/(1 + 15%)^5
= $442108.5079
Therefore, the present worth of the cost savings if the company uses an interest rate of 15% per year on such investments is $442108.5079.
