Answer:
PV = $8,719.322
PV= $87,600.88
Explanation:
Calculation for how much do you have to invest today If you can earn an annual return of 11.38 percent
Using this formula
PV = FV / (1 +r)t
Let plug in the formula
PV = $1,000,000 / (1.1138)^44
PV=$1,000,000/114.7878460565
PV = $8,719.322
Therefore If you can earn an annual return of 11.38 percent the amount you have to invest today will be $8,719.322
Calculation for if you can earn 5.69 percent
PV = $1,000,000 / (1.0569)^44
PV =$1,000,000/11.41540982272
PV= $87,600.88
Therefore If you can earn an annual return of 5.69 percent the amount you have to invest today will be $87,600.88
Answer:
$ 152.35
Explanation:
The stock price today can be computed by first determining the future value of the dividend in perpetuity ,then discounting that to present value.
Value in perpetuity=dividend/required return
dividend is $20
required return is 5.10%
value in perpetuity=$20/5.10%=$392.16
The price of the stock today is the present value of the value in perpetuity
PV=FV*(1+r)^-n
FV is $392.16
r is the required return of 5.10%
n is the number of years involved,which is 19,it is 19 because counting from today till the next next years would be first day of the next twenty years
price=$392*(1+5.10%)^-19=$ 152.35
Expansionary fiscal policy refer to lowering taxes or increasing government spending. When the government lowers taxes, it increases the disposable income of the consumers, thereby increasing the aggregate demand for goods in the economy. Similarly, when the government increases government spending it directly increases the aggregate demand in the economy. Both resulting in economic growth.
On the other hand, Contractionary fiscal policy is related to increasing taxes or lowering government spending. increase in Taxes will lower disposable income and thereby decrease the aggregate demand in the economy. Similarly, less government spending will directly lower aggregate demand and cause a reduction in economic growth.
Answer:
1. Faces a downward-sloping demand curve
- BOTH MONOPOLIES AND MONOPOLISTICALLY COMPETITIVE FIRMS HAVE A DOWNWARD SLOPING DEMAND CURVE
2. Has marginal revenue less than price
3. Faces the entry of new firms selling similar products
- NEITHER, SINCE MONOPOLISTICALLY COMPETITIVE FIRMS OFFER DIFFERENTIATED PRODUCTS, NEW COMPETITORS WILL NOT OFFER SIMILAR PRODUCTS. MONOPOLIES HAVE THE ADVANTAGE OF BARRIER ENTRIES THAT PREVENT NEW FIRMS FORM ENTERING THE MARKET.
4. Earns economic profit in the long run
- ONLY MONOPOLIES, BECAUSE MARKET BARRIERS PREVENT NEW FIRMS FROM ENTERING THE MARKET.
5. Equates marginal revenue and marginal cost
- BOTH MONOPOLIES AND MONOPOLISTICALLY COMPETITIVE FIRMS MAXIMIZE ACCOUNTING PROFITS AT THIS POINT
6. Produces the socially efficient quantity of output
Answer:
Explanation:
The situation that would shift the supply of Green Bay Packers football jerseys to the left is when the cost of the fabric used to make the jerseys increases.
A change in a supply is shown as a shift of the supply curve.
Factors that causes a shift in the supply curve include <u>prices of factors of production</u>, returns from alternative activities, technology, seller expectations, natural events, and the number of sellers.
In the scenario, the cost of the fabric used to make the jerseys increases and will cause suppliers to make less jerseys given that all other things remain constant because given the same amount of money they will only be able to buy fewer raw materials which will lead to making fewer jerseys
