Answer:
An increase in government spending of $300 billion and a tax cut of $300 billion will have <u>EQUAL</u> effects on the budget balance and <u>UNEQUAL</u> effects on real GDP.
Explanation:
Both actions will increase the budget deficit by $300 billion each.
But the total effect of government spending in the aggregate demand is determined by the government spending multiplier = 1/marginal propensity to save (MPS).
On the other hand, the effect of the tax cut will be determined by the marginal propensity to consume (MPC).
The coupon rate must be set at 9.77%
The after-tax return on the bonds is:
= Annual payment rate * ( 1 - tax rate)
= 8.1% * ( 1 - 40%)
= 4.86%
The investors would like an after-tax return on preferred stock that is more than their bond return by 1% so they would like a preferred return of:
= 4.86% + 1%
= 5.86%
If the Preferred must be issued at par, its coupon rate must be equal its before-tax yield:
= After tax yield / ( 1 - tax rate)
= 5.86% / ( 1 - 40%)
= 9.77%
<em>More on this type of question can be found at brainly.com/question/17126608</em>
Answer:
It would be B,C,D on edge
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Explanation:
The credit card interest charges are calculated with the total amount due on a card at the end of the day.
Answer: sorry hvfhbhdbhdbhb
Explanation:
