Answer:
A
Explanation:
The investment A was more risky, but in general they were both pretty much a risk.
With both having a produced annual rates of return in under 10%
Reason for A being the riskier is that his annual rate of return in average was 8%, while B's annual rate was 9%
Difference may seem small, but for bigger investments 1% can be a deal breaker.
Answer:
$140
Explanation:
Calculation for What is the least amount the government can spend to overcome the $350 billion gap
First step is to find the Multiplier using this formula
Multiplier=1(1-Marginal propensity)
Let plug in the formula
Multiplier=1/(1-0.6)
Multiplier=1/0.4
Multiplier=2.5
Now let calculate the least amount the government can spend using this formula
Least amount=Gap/Multiplier
Let plug in the formula
Least amount=$350 billion /2.5
Least amount=$140
Therefore the least amount the government can spend to overcome the $350 billion gap is $140
Answer:
1. B
2. E
Explanation:
1. Consumer or buyers use the extended decision making as it is that decision making which involves high level of the purchase involvement, extensive internal and the extensive information search with complex evaluation of the alternatives. In case of automobiles, buyers will choose the extended decision making as it is expensive, infrequently purchased products.
2. As there is involvement of high risk of financial loss in the future purchasing power, for people or consumer, the automobiles have the situational involvement, it is the short term state which directs towards the attaching relevance of a situation or person. In other words, it is an state where, it establish a level of involvement when a consumer or person think of a specific situation or object.
Answer
C. The government spending to strengthen the economy
Explanation
The fiscal policy is applied by the government to influence the economy through adjusting revenue and spending levels. The Fiscal policy is applied with the monetary policy to give a direction of the economy and reach the set economic goals. In this case, taxation and money transfers has been applied.
Answer:
a. NAV = 8 per share
b. 250.000 shares
c. 7.95
Explanation:
a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share
b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.
c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.
New NAV = $7,950,000 /1m = $7.95
