Answer:
c. $400 billion
Explanation:
Calculation to determine what an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right
First step is to calculate the GDP Multiplier
Using this formula
GDP Multiplier=1/(1-MPC)
Let plug in the formula
GDP Multiplier=1/1-0.75
GDP Multiplier=1/0.25
GDP Multiplier=4
Now let determine the shift in aggregate demand curve
Shift in aggregate demand curve=4*100 billion
Shift in aggregate demand curve= $400 billion
Therefore an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right by $400 billion
As a business person planning to open a new small business, you know that the business plan should not contain pages and pages of detailed facts and figures.
Hope this helps :)
Answer:
False
Explanation:
Illiquidity in the context of a business refers to a company that does not have the cash flows necessary to make its required debt payments, although it does not mean the company is without assets.
Answer:
For 100 shares, the mount that should be paid = $1766
Explanation:
We have to calculate the price of the stock in the 4th year because the investor cannot afford the stock in another 3 years.
Price of the stock = Do + g / ke - g
Dividend in current year = $1.2
Dividend after 1 year = 1.2 +2.5% (1.2)= 1.23
Dividend after 2 years = 1.23 + 2.5%(1.23) = 1.26075
Dividend after 3 years = 1.26075 + 2.5%(1.26) = 1.29227
Price in 4th year = 1.29227 + 2.5% / (0.10 - 0.025)
=1.29227 + 2.5%(1.29227)/0.075
= 17.66
Therefore, for 100 shares, the mount that should be paid = 17.66 * 100 = $1766
If there is no unity in a shared system, then diversity can become chaos.
