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3 years ago

Imports of foreign automobiles increase 10%. which determinant of aggregate demand causes the change?

1 answer:

8 0

Aggregate demand is the sum of five different sectors of economy namely consumption of consumer spending, investment, government spending, imports, and exports. For an increase of imports of foreign automobiles, the determinant that causes the change is the consumption or consumer spending.

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Suppose that $780 is deposited at the end of every year into an account paying interest of 6% per year. At the end of fifteen (1

nexus9112 [7]

Answer:

The account will be worth approximately $1,869

Explanation:

First of all, note that 6% of an amount = 6/100 × the amount = 0.06×amount.

Next let us calculate the amounts gotten for the first 4 years, and establish a pattern that will will us for the remaining 11 years.

1st year total= deposit + (0.06×deposit) = 780 + (0.06 × 780)

= 780 + 46.8 = $826.8

2nd year total = 826.8 + (0.06 × 826.8) = $876.408

3rd year total = 876.408 + (0.06 × 876.408) = $928.992

4th year total = 928.992 + (0.06 × 928.992) = $984.732

Now, if we observe the total amounts as the year progresses, we notice that the next year increase by a certain constant factor which is 1.06; this is determined by dividing the amount in a year by the amount in the previous year. It is shown below;

Year 2 ÷ Year 1 = 876.408 ÷ 826.8 = 1.06

year 3 ÷ year 2 = 928.992 ÷ 876.408 = 1.06

year 4 ÷ year 3 = 984.732 ÷ 928.992 = 1.06

Now, to determine the amount in the next year, we will multiply the amount in the previous year by 1.06 (common increasing factor)

Year 5 = year 4 × 1.06 = 984.732 × 1.06 = $1,046.816

year 6 = 1046.816 × 1.06 = $1,106.445

year 7 = 1106.445 × 1.06 = $1,172.832

year 8 = 1172.832 × 1.06 = $1,243.202

year 9 = 1243.202 × 1.06 = $1,317.794

year 10 = 1317.794 × 1.06 = $1,396.862

year 11 = 1396.862 × 1.06 = $1,480.674

year 12 = 1480.674 × 1.06 = $1,569.514

year 13 = 1569.514 × 1.06 = $1,663.684

year 14 = 1663.685 × 1.06 = $1,763.506

Year 15 = 1763.506 × 1.06 = $1,869.316 which is approximately $1,869

Alternatively, you can count how many 1.06s are there from year 5 to year 15, and the answer is 11. then you can raise 1.06 to a power of 11 as shown

$1.06^{11} = 1.8983$

then multiply the amount in year 4 by 1.8983

= 984.732 × 1.8983 = $1,869.316. = approx. $1869

This second method is easier, but I wanted you to see what is going on that is why i did the details in the first method

8 0

4 years ago

Cosmo has just made his dream come true of buying the property that his restaurant occupies. His excitement is short lived, howe

forsale [732]

Answer:

Realistic aspect

Explanation:

Considering the scenario described in the question it can be concluded that Cosmo shifted his focus onto which REALISTIC aspect of goal-setting theory.

This is because following Cosmo making his dream come true of buying the property that his restaurant occupies, the idea that he could rent out the storefront next to the restaurant for added income is a REALISTIC Aspect of Goal Getting.

This implies that Cosmo is more realistic in terms of his financial abilities and willingness to work toward the goal of paying off the mortgage loan

7 0

3 years ago

You transferred $6,456 from your checking account to your savings account. The balance in savings was $7,870 before the transfer

Viefleur [7K]

Answer:45 percent

Explanation:

saving account before transfer=$7870

Saving account after transfer=7870+6456=14326

Percentage increase=(14326-7870)/14326 x 100

Percentage increase=6456/14326 x 100

Percentage increase=0.45 x 100

Percentage increase=45

3 0

3 years ago

Read 2 more answers

An increase of $100,000 in inventory would result in a(n) Increase in bonds payable. Decrease of net cash flow. Decrease in mark

ki77a [65]

Answer:

Decrease of net cash flow

Explanation:

Underthe indirect method, we calculate the cash flow based on the change in working capital:

The inventory, which is an asset will be purchased with cash or cash equivalent. Therefore, an increase on inventory produce a decrease of net cash flow.

If the inventory is purchased on account then, It will increase account payable, which represent an increase on the net cash flow. This generates a net effect of zero, 100,000 for account payable - 100,000 for inventory.

Which is what happens when purchase on account are made.

However, here we are asked for an increase on inventory only. We should simply state that this will represent a decrease in the cash flow for 100,000.

5 0

3 years ago

Four percent of the customers of a mortgage company default on their payments. a sample of five customers is selected. what is t

Maurinko [17]

We can use the formula for binomial distribution in calculating for the probability that exactly two customers out five will default on their payments.

The formula is: P(r) = nCr*q^(n-r)*p^r
Where:
n = sample size, 5
r = successes, 2
q = failure rate, 96% = 0.96
r = success rate, 4% = 0.04

Substituting on the formula:
P = 5C2*0.96^3*0.04^2
<span>P = 0.0142 or 1.42%</span>

8 0

4 years ago