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3 years ago

If the mpc is 0.70 and investment increases by $3 billion, the equilibrium gdp will

1 answer:

7 0

<span>If the MPC is 0.70 and investment increases by $3 billion, the equilibrium GDP will increase by $10 billion.

The GDP is the Gross Domestic Product and the MPC is the marginal propensity to consume. The MPC tracks that a raise in pay will increase consumers spending on goods and services. If there is an increase in spending budget, then the GDP will increase because of more spending power.
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A bond has a face value of $1,000, a coupon of 5% paid annually, a maturity of 34 years, and a yield to maturity of 8%. What rat

Lyrx [107]

Answer:

- 3.21%

Explanation:

In this question, we use the PV formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Future value = $1,000

PMT = 1,000 × 5% = 50

NPER = 34 years - 1 year = 33 year

Rate of interest = 9%

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value would be $581.42

Now the return would be

= Sale price + interest - purchase price

= $581.42 + $50 - $652.39

= -$20.97

And, the total return would be

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= - 3.21%

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3 years ago

A five-year project is expected to generate revenues of $120,000, variable costs of $72,000, and fixed costs of $20,000. The ann

Komok [63]

Answer: $21,880

Explanation:

First find the after tax operating income:

= (Revenues - variable costs - fixed costs - depreciation ) * ( 1 - tax rate)

= (120,000 - 72,000 - 20,000 - 10,00) * ( 1 - 34%)

= $11,880

Then add back depreciation because it is a non-cash expense:

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3 years ago

Which of the following is not a part of the Federal Reserve system?

shusha [124]

Answer:

The correct answer is U.S. Department of Treasury .

Explanation:

The Department of the Treasury is not a part of the Federal Reserve, but instead, both entities work together to maintain the country's economy.

The Department of the Treasury is in charge of printing money, collecting taxes, and interacting on financial advice with the president. This department was created in 1789, even before the federal reserve appeared in 1913.

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4 years ago

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Answer:

ethical leadership

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Ethical leadership emphasizes personal values such as trust, honesty, empathy, fairness, etc.

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What is paid first before the balance on a credit card?

AysviL [449]

Interest has to be paid...

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3 years ago