<u>Answer:
</u>
The interest rate effect explains why the aggregate demand curve is downward sloping.
<u>Explanation:
</u>
- The interest rate effect proposed by Keynes suggests the reasons for why is the aggregate demand curve downward sloping.
- It states that, when the interest rates are low, people choose to invest owing to the decreased costs of investment. This investment stimulates a drop in the levels of price.
- The dropped prices thus increase the aggregate demand for the commodities of which the price has dropped.
Out of the choices given, the choice that is NOT a use for project plans in the workplace is teacher lesson plans. The correct answer is B.
Answer:
c = $71.80.
Explanation:
So, from the question above, it is given that the dividend in the first year = $1.65, the dividend in the second year = $2.54, the dividend for the third year grows at the rate of 8% and the appropriate required return for the stock = 11%.
The first thing to do here is to determine the terminal value. The terminal value can be calculated as below as;
Terminal value = [ 2.54 × ( 1 + 8/100) ÷ (11/100 - 8/100) ] = 91.44
The value of the stock today can be calculate as be as:
The value of the stock today = 1.65 / (1 + 11/100 )¹ + 1.97 / (1 + 11/100)² + 2.54 / (1 + 11/100)³ + 91.44 / (1 + 11%)³ = $71.80.
Therefore, stock should be worth $71.80 today.
Answer:
ii. Her accounting profit was $150,000
iii. Her economic profit was $50,000
Explanation:
The computation is shown below:
For accounting profit, it is
= Total revenues - total expenses i.e explicit cost
= $250,000 - $100,000
= $150,000
And, for economic profit
= Total revenues - total cost i.e explicit and implicit cost
= $250,000 - $100,000 - $100,000
= $50,000
Hence, the second and third options are correct
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
