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3 years ago

The portion of planned aggregate expenditure that is independent of output is called ______ expenditure.

Business

1 answer:

mars1129 [50]3 years ago

6 0

I think that it might be structured spending but i am not completly sure on it so double check

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In the United States, what does the general level of a family’s income have to do with the amount of cash the family is likely t

Sophie [7]

Answer:

The general level of family's income is directly proportional to the amount of cash a family is likely to hold

Explanation:

Of the three motives of money, transactional motives of money relates to holding money(whether at hand or at bank) to meet daily transaction e.g buying of fuel/gas, transport fare to work place.

If the level of income of a family increases, other things being equal, the family tends to hold more money for their daily transaction. The level of income is directly proportional to amount of cash a family holds...

For example, family A earns $100 per week and holds $30 to meet daily transaction or unforeseen circumstances. If his pay increases to$150, it is intuitive for Mr A to hold higher money, lets say $50

6 0

3 years ago

It announces that it plans to pay dividends of $1 per share exactly three years from now and $2 per share exactly four years fro

kkurt [141]

The Question is incomplete.

The complete question is as follows:

It announces that it plans to pay dividends of $1 per share exactly three years from now and $2 per share exactly four years from now. From year 5 onwards, dividends are expected to grow at a constant rate of 10% per year. The company pays no dividends in years one and two. The risk-free rate is 5%, the company's beta is 1.5 and the expected return on the market is 11%. Calculate the price of this stock today

Answer:

Price of stock = $34.42

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

Required rate of return

Using the CAPM , the rate of return on equity can be determined as follows:

E(r)= Rf +β(Rm-Rf)

E(r) =? , Rf- 5%, Rm- 11%, β- 1.5

Ke = 5% + 1.5× (11-5)%

= 14%

Present value of Dividends(PV)

Year PV

3 $1.00, × (1.14^(-3) = 0.6749

4 $2.00× 1.14^(-4) = 1.18416

5 and beyond

This will be done in two (2) steps as follows:

PV in year 4 = (2 × 1.10) /(0.14-0.1) = 55

PV in year 0 = 55× 1.14^(-4) = 32.56

Price of stock

= 0.6749 + 1.18416 + 32.56

= $34.423

7 0

3 years ago

Question 1:

olga_2 [115]

Answer:

D) Store all chemicals in a well-lit, warm area

5 0

3 years ago

Explain why America has a debt problem.

kenny6666 [7]

Answer:

That's because as a country's economy grows, the amount of revenue a government can spend to pay its debts grows as well. In addition, a larger economy generally means the country's capital markets will grow and the government can tap them to issue more debt.

Explanation:

hope it helps

7 0

2 years ago

Keynesians a. advocate for a laissez-faire approach. b. believe that equilibrium may exist at less than full employment.c. belie

Olin [163]

Answer:

c. believe in the use of fiscal policy to stabilize the economy.

Explanation:

According to Keynesian theory, the sum of some micro-economic behaviors of all individuals and businesses results in inefficiency and the economy operates at a level below its potential output and growth. When total demand for products is insufficient, the economy enters a crisis and unnecessary unemployment arises due to defensive behavior of the producers. In such cases, the government may pursue policies to increase aggregate demand, and as a result may accelerate economic activities and reduce unemployment. Most Keynesian propose policies to stabilize the business cycle. For example, when the unemployment level is too high, the state can pursue a growth-oriented monetary policy. , one of the most famous of his critiques, Keynes argues and did not agree with "The Laissez-faire" that he opined the doctrines of laissez-faire are dependent on some extent on a case-by-case basis.

8 0

3 years ago