Answer:
a. of widespread entrepreneurship.
Explanation:
According to the Institute for Management Development, a business education school that is situated in Lausanne, Switzerland. In its annual rankings on the performance of 63 economies across the globe. In 2018 rated the United States of America as the topmost economy in competitiveness. Based on various data gathered and surveyed, the education school cited "widespread entrepreneurship" as the major reason behind it.
Answer:
A. 8.15
Explanation:
WACC is the firm's weighted average cost for the capital that is employed from different sources which includes common equity, preferred equity and debt.
In order to calculate WACC, the weighted average cost of each capital is added, so the formula becomes:
WACC = (E x %E) + (D x (1 - Tax) x %D) + (PE x %PE)
E = Common equity
D = Debt
PE = Preferred equity
%E = Common equity / total capital
%D = Debt / total capital
%PE = Preferred equity / total capital
Tax = Tax rate
<em>Interest on debt is a tax deductible expense therefore the interest rate is taken after accounting for tax in order to calculate WACC.</em>
<u>Calculation:</u>
Using the above formula we can calculate WACC
WACC = (11.25% x 55%) + (6.5% x (1-40%) x 35%) + (6% x 10%)
WACC = 0.0815 or 8.15%
Answer:
The correct answer is D. will result in a multiple times higher decrease in equilibrium real GDP in the short run; however, a tax-rate reduction will increase the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be less stable.
Explanation:
Ricardian Equivalence is an economic theory that suggests that when a government increases expenses financed with debt to try to stimulate demand, demand does not really undergo any change.
This is because increases in the public deficit will lead to higher taxes in the future. To keep their consumption pattern stable, taxpayers will reduce consumption and increase their savings in order to offset the cost of this future tax increase.
If taxpayers reduce their consumption and increase their savings by the same amount as the debt to be returned by the government, there is no effect on aggregate demand.
The fundamental concept of Ricardian equivalence is that it does not matter which method the government chooses to increase spending, whether by issuing public debt or through taxes (applying an expansive fiscal policy), the result will be the same and demand will remain unchanged.
Answer:
C
Explanation:
you don't want to do A or b so with that it can't be D
