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stich3 [128]
4 years ago
13

Item 8Item 8 In a certain year, the aggregate amount demanded at the existing price level consists of $100 billion of consumptio

n, $40 billion of investment, $10 billion of net exports, and $20 billion of government purchases. Full-employment GDP is $120 billion. To obtain price-level stability under these conditions, the government should
Business
1 answer:
erma4kov [3.2K]4 years ago
4 0

Answer:

The government can reduce GDP by either:

  1. lowering government expenses
  2. increasing taxes which will lower consumption
  3. or a combination of both

Explanation:

currently total GDP = $100 billion (C) + $40 billion (I) + $20 billion (G) + $10 billion (X) = $170 billion

since the full employment GDP = $120 billion, the government must lower the GDP by $50 billion before inflation starts to rise.

The government can reduce GDP by either:

  1. lowering government expenses
  2. increasing taxes which will lower consumption
  3. or a combination of both

We aren't given any more information regarding MPC or MPS, so it is not possible to calculate by how much should government spending be lowered or taxes increased.

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Sue purchased a stock for $26.50 a share, held it for one year, received a $1.34 dividend, and sold the stock for $28.45. What n
babunello [35]

Answer:

the nominal rate of return she earned is 12.42%

Explanation:

The computation of the nominal rate of return she earned is shown below:

return = (sell price - buy price + dividend) ÷ buy price

= ($28.45 - $26.50 + 1.34) ÷ ($26.50)

= 12.42%

Hence, the nominal rate of return she earned is 12.42%

We simply applied the above formula so that the correct rate could come

6 0
3 years ago
A listing given to any number of brokers without liability to compensate any broker, except the one who first secures a buyer re
german

Answer:OPEN LISTING

Explanation:

Open listing is a term used in the Marketing of securities like bonds,stocks and other marketable securities and real estates, in this type of listing it is made open to all the brokers available who are ready to help facilitate the sale.

Compensation can only be paid to the Broker who first brings the buyer of the listing. A broker is compensated based on the amount made buy the owner of the listing.

6 0
3 years ago
In the market for loanable funds, suppose the current interest rate is 5%. At a rate of 5%, investors wish to borrow $100 millio
Mrrafil [7]

Answer:

The answer is a the interest rate to fall as there is currently a surplus of loanable funds.

Explanation:

Investors who wish to borrow $100 million represent quantity of money demand and savers who wish to save $125 million. There is surplus of loanable funds SS > DD = $125 million >  $100 million

7 0
4 years ago
One result of globalization is that countries, businesses, and people become increasingly interdependent. a. True b. False
Gnoma [55]

Answer:

The Given Statement is True

Explanation:

It is true that globalization causes the businesses, countries and people to become increasingly interdependent. Globalization means operating internationally which causes the people, businesses and the countries to depend on each other. Globalization is also used to describe the increasing interdependence of countries, people and businesses.

3 0
3 years ago
Toy Mart recently announced that it will pay annual dividends at the end of the next two years of $1.60 and $1.10 per share, res
Delicious77 [7]

Answer:

$9.43

Explanation:

Calculation for what should this stock sell for today

Stock today = $1.60/1.135 + $1.10/1.135^2 + $13.50/1.135^5

Stock today = $9.43

Therefore what should this stock sell for today is $9.43

6 0
3 years ago
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