The increase in real GDP when government spending increases is $16 billion.
<h3>What is the increase in real GDP?</h3>
Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Increase in Real GDP = multiplier x increase in government spending
$5 billioin x 3.2 = 16 billion
To learn more about GDP, please check: brainly.com/question/15225458
This would be an example of an negative.
I'm not 100% sure if that's what you're looking for?
But the waste from the steel factor is killing the fish, so it's definitely a negative impact.
Weight data is your answer
Answer:
P0 = $28
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1 / (r - g)
Where,
- D1 is the dividend expected for the next year
- r is the required rate of return
We first need to calculate r using the CAPM. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the market rate of return
r = 0.05 + 1.4 * (0.15 - 0.05)
r = 0.19 or 19%
Now we can calculate the price of the stock today.
P0 = 3.92 / (0.19 - 0.05)
P0 = $28
