Answer:
D
Explanation:
In order for a college to accept a new student they need to have a look at their GPA.
Answer:
3) AD shifts right and output would decrease.
Explanation:
Aggregate demand (AD) is the total number of goods demanded in an economy in a period of time.
If Congress decides to cut the National debt (or accumulated debt of the government) by half, this will make interest rates lower and will encourage investment from the private sector.
The shifting to the right occurs when these components; consumption spending and investment spending increases due to cut in National debt.
The AD curve will shift back to the left as these components decreases.
Answer: Option B and C
Explanation: In simple words , contingent liabilities refers to the liabilities the occurrence of which depends on the happening of an event that may or may not occur in the future.
These are recorded in the accounts only when the payment is to be made in future and that payment could be reasonably estimated.
Hence the correct option is B and C
Answer:C
Explanation: I have worked for 3 banks over the course of the last 10 years.
Answer:
Clarissa needs to fund the growing perpetuity by $166666.67
Explanation:
A perpetuity is an investment that will give a future series of infinite payments so if the perpetuity gives you a periodic growth rate then you find the difference between the interest rate and the growth rate then use the perpetuity formula which is:
Pv = C/(i-g)
where Pv is the present value of the perpetuity which will be the initial investment.
C is the periodic payments that will be received in future in this case $5000
i is the interest rate given for the perpetuity which is 8%
g is the growth rate per fixed period which is 5%
thereafter we substitute on the above mentioned formula:
Pv= $5000/(8%-5%) then compute
Pv = $166666.67 which will be the initial investment for Clarissa to be paid $5000 per year until she dies.
