All categories

2 years ago

How is the spending multiplier effect related to demand-side economics?

1 answer:

8 0

Because of the Spending multiplier effect, small investment changes will create larger changes, and macroeconomic policy will undergo some improvements and expenditures

Hope this Helps :D

You might be interested in

Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outc

lozanna [386]

Answer:

B) $90,000

Explanation:

The market value of the unlevered equity can be calculated using the following formula:

Expected value = Σpx

Where:

p = the probability of each outcome =50% in this case for both weak and strong economy.

x = the present value of cash flow for each outcome which is $90,000 in case of weak economy and $117,000 in case of strong economy.

Expected value= 0.50(90,000(1+15%)^-1)+0.50(117,000(1+15%)^-1)

=0.50(78,260.87)+0.50(101,739.13)

=$90,000

So the answer is B) $90,000

5 0

2 years ago

Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual

Dmitrij [34]

<u>Solution and Explanation:</u>

Required Return after 5 year = Real rate of return + Inflation premium + Risk premium

Required Return after 5 year = 5+2+4

Required Return after 5 year =11%

No of year left to maturity = 25

Annual Interest payment = 15%*1000 = 150

Face value of Bond = 1000

New price of the bond = pv (rate, nper, pmt, fv)

New price of the bond = pv (11%,25,150,1000)

New price of the bond = $ 1336.87

4 0

3 years ago

A random sample of 89 tourists in chattanooga showed that they spent an average of $2860 (in a week) with a standard deviation o

faust18 [17]

Answer:

The complete question is given in the explanation box below and the solutions to the problem is shown in the pictures attached herewith accordingly. Thank you.

Explanation:

a. Determine the degrees of freedom for this test.

b. Compute the test statistic.

c. Compute the p-value.

d. What is your conclusion? Let α = .05.

6 0

3 years ago

Read 2 more answers

The interest rate for this lease is 11%. the payments are due on december 31 of each year. the first payment was made on decembe

Artist 52 [7]

So what is the question? This is just a statement.

4 0

3 years ago

Company had 200 units of inventory on hand at the end of the year. These were recorded at a cost of $12 each using the last-in,

Georgia [21]

Answer:

Debited by $400

Explanation:

Calculation for the Cost of Goods Sold

Using this formula

Cost of Goods Sold= Inventory on hand*(Cost-Current replacement cost)

Let plug in the formula

Cost of Goods Sold=200 units * ($12 - $10)

Cost of Goods Sold= 200 units*2

Cost of Goods Sold = $400 Debited

Therefore the Cost of Goods Sold will be:$400 Debited

8 0

3 years ago