All categories

3 years ago

International trade, and changes in the aggregate price level.

Business

1 answer:

san4es73 [151]3 years ago

4 0

Answer:

A) 50 millions

B) 10

C) 0.10

Explanation:

Government spending multiplier:

1/(1-MPC) = 1/MPS

1/(1-0.75) = 1/0.25 = 4

The government multiplier is 4 thus, to increase the GDP by 200 million the government spending should be of 50 millions as:

government spending x multiplier = increasein GDP

G x 4 = 200

G = 200/4 = 50

we are given with G and increase in GDP we should solve for multiplier:

government spending x multiplier = increasein GDP

20 x m = 200

m = 200 / 20 = 10

C) the multiplier is: 1/(1-MPC) = 1/MPS

if m = 10 then:

1/MPS = 10

MPS = 1/10 = 0.10

You might be interested in

On January 1, the Molding Department had 4,000 dolls in process. These dolls were 100% complete with respect to direct materials

Zina [86]

Answer:

B) 86,000

Explanation:

The computation of the equivalent units related to material is shown below:

= Units completed × percentage + ending work in process units × percentage

= 79,000 dolls × 100% + 7,000 dolls × 100%

= 79,000 dolls + 7,000 dolls

= 86,000 dolls

The equivalent units include completed & transferred units and ending units of work in process inventory

7 0

4 years ago

You have a portfolio worth $63,500 that has an expected return of 13.3 percent. The portfolio has $16,900 invested in Stock O, $

eduard

Answer:

Return on Stock Q is 11.85%

Explanation:

Investment in Q = ($63,500 - $16,900 - $24700)

Investment in Q =21900

Portfolio return = Respective return * Respective investment weight

13.3= (16900 / 63500 * 18.1%) + ( $24,700 / $63,500 * 11.3% ) + ( $21900 / $63,500 * Return on Q)

13.3 = 4.817165354 + 4.39533071% + (21900 / 63500*Return on Q)

13.3 = 9.21259843% + (21900 / 63500*Return on Q)

Return on Q = (13.3% -9.21259843%) *63500/21900

Return on Q = (4.08740157 * 2.899543379)

Return on Q = 11.85159816%

Return on Q =11.85%

6 0

3 years ago

Isabella is a 30% partner in the ITV Partnership. On January 1, ITV distributes $32,000 cash, inventory with a $32,000 fair valu

Mademuasel [1]

Answer:

Explanation:

We know that:

Isabella is 30% Partner In ITV
with basis of $40000

ITV Distribute s:

$32,000 cash
$32,000 inventory (Inside Basis $16,000)
$16,000 receivable (Inside Basis $24,000)

Therefore, we calculate Isabella's net gain or loss

$32000 × 30% = $9,600 Cash

$32000 × 30% = $9,600 Inventory

$24000 × 30% = $7,200 Receivable

The total amount is

$9600 + $4800 + $7200 =$21,600

Therefore Isabella's net gain or loss will be $40,000 - $21,600 = $18,400.

From the calculations, Isabella will have $0 gain or loss from the liquidating distribution

8 0

4 years ago

The ________ assumes responsibility for monitoring how the contractor is doing in terms of cost, schedule, and technical perform

JulijaS [17]

<span>Business/Financial manager </span>assumes responsibility for monitoring how the contractor is doing in terms of cost, schedule, and technical performance
Before a company start its operation for the year, the executives of that company will determine the budget that seem appropriate for all fo the operations.
The duty of business/financial manager is to make sure that the cost of operations do not exceed that pre-determined budget

5 0

3 years ago

A company currently pays a dividend of $3.4 per share (D0 = $3.4). It is estimated that the company's dividend will grow at a ra

ArbitrLikvidat [17]

Answer:

Current price of stock =$128.06

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

The model is given as

P = D× g/(r-g)

P- price, D- dividend payable in year 1, r -cost of equity, g - growth rate in dividend

Cost of equity

The cost of equity can be calculated using the Capital Asset Model (CAPM).

Ke= Rf +β(Rm-Rf)

Ke =? , Rf- 6.5%, (Rm-Rf)- 1.5, β- 1.3

Ke=6.5% + 1.3× (1.5)= 8.45%

Stock price

PV of dividend in year 1 = 3.4× 1.17× 1.0845^(-1)=3.668

PV of dividend in year 2 = 3.4× 1.17^2× 1.0845^(-2) = 3.9572

<em>PV of dividend in year 3</em>

This will be done in two(2) steps:

Step 1- PV in year 2 terms

3.4× 1.17^2× 1.05/(0.0845- 0.05)= 141.651

Step 2- PV in year 0

141.6513913× 1.0845^(-2)= 120.4375

Current piece of stock = 3.668 + 3.957 + 120.4375 = 128.062

Current price of stock =$128.062

5 0

3 years ago