Answer:
The return after taxes is 7.9%
Explanation:
At the start of the year the portfolio is valued at $365,000.
At the end, his portfolio has returns by dividends ($3,579), interests ($2,783) and portolio's valuation (389,648-365,000=$24,648).
The tax is applied to the dividends and interests, as:
Tax = 0.35 * (3579+2783) = 0.35*6362 = $2,226.70
We can then calculate the investor's return as
R = profit after taxes / initial portfolio valuation
R = ((3579 + 2783 - 2226.70)+24648)/365000
R= 28,783.30 / 365,000 = 0.079 = 7.9%
Answer:
The higher discount rate lower the banks incentive to borrow from the Fed, lowering the quantity of reserves, and causing the money supply to fall.
This is because a higher discount rate makes borrowing from the Fed more expensive. Some of the money that would have been borrowed from the fed becomes bank reserves, and some other becomes loanable funds that increase the money supply. As a result, if banks borrow less from the fed, the money supply falls (or grow less).
The Fed Funds rate is the rate that banks charge one another for short-term overnight loans.
This occurs when banks are stripped of cash, and rely on other banks to meet their cash requirements for the day.
When the Fed buys government bonds, the reserves in the banking system increases, the banks demand for the reserves decreases, and the federal funds rate falls.
When the Fed buys government bonds, it is essentially creating money. This money enters the banking system in the form of reserves, of which some are loaned out, creating even money. Demand for the borrowed reserves falls because banks now need less of it, and as a result, their price: the federal funds rate, also falls.
Explanation:
<span>The goal of giving the debtor a fresh start is accomplished through</span><span> releasing debtors from personal liability for specific debts and protecting them from collection efforts.</span>
Answer:
shifts the short-run Phillips curve up
Explanation:
The Phillips curve is a graph that shows the relationship between inflation and unemployment. In the short run, there is an inverse relationship between inflation and unemployment. The Phillip curve submits that high inflation is the cost to pay for economic growth. economic growth is accompanied by low unemployment. In the long run, there is no trade-off between inflation and unemployment.
An increase in expected inflation leads to an upward shift of the Phillips curve in the short run. Unemployment would stay unchanged. While a decrease in expected inflation leads to a downward shift of the Phillips curve
Stagflation in the 1970s have disproved the Phillips curve. Stagflation is when there is high unemployment and high inflation
Answer:
$117,800
Explanation:
GDP formula is:
GDP= Consumption (C)+ Investment (I)+ Government expenditure ()+ Net exports (exports-imports)
Last year, C= $69,000 and it increased 10% (100%+10%=110%),
This year: C= $69,000*1.10= $75,900.
Last year: I= $18,000 and it decreased 5% (100%-5%=95%).
This year: I= $18,000*0,95= $17,100
Last year: G=$19,000 and it increased by 20% (100%+20%=120%)
This year: G= $ 19,000*1.20=$22,800
Last year: X-M= $2000 and it remained the same
This year: X-M= $2000
Current year´s GDP= $75,900+$17,100+$22,800+$2000= $117,800
