Answer: D) saving equals investment as long as NX = 0
Explanation:
The last option was incomplete as it should have said ...NX = 0.
The Income/GDP of a country that is open to international trade is calculated as follows:
Income = Consumption + Investment + Government spending + Net exports
Y = C + I + G + NX
If NX = 0 then the formula becomes:
Y = C + I + G
Investment in this scenario is therefore:
I = Y - C - G
This is the same as savings as savings is calculated by subtracting consumption and government spending from the total income. This is because government spending is derived from taxes so the cash that people get to save is their income less than their taxes and consumption expenses.
S = Y - C - G = Y
Answer:
see below
Explanation:
Simple interest is a method of calculating gains or yields from savings, deposits, or credit. In simple interest, the interest earned is a constant figure throughout the life of an investment or loan. Simple interest is usually expressed as a percentage, called the interest rate. It is calculated by multiplying the interest rate by the principal amount and by the time. The interest rate quoted applies for a year.
Unlike simple interest, interest earned in compound interest increases every year. Compounding interest refers to the practice of adding interest earned to the principal amount. An increase in the principal amount results in an increase in the interest earned. Due to the compounding effect, a compound interest-earning account will yield more interest than a simple interest-earning account.
The correct statement is that the monthly payment of a loan of $3000 will be $104.11. The calculations obtained are not relevant with the options of the statement quoted above.
The calculations can be done by applying the values to the formula of compounded interest and then further multiplying the values obtained with the number of monthly payments.
<h3>Calculation of Compounded Monthly Payments </h3>
- The formula to calculate compound interest is as below.
- The values obtained will now be derived into the following formula,
So, it is clear that the compounded monthly payments will be $104.11.
Hence, the monthly payment of loan for 36 months will be $104.11 which will be paid monthly at the rate of 7.5%.
To know more about Compounded payments, click the link below.
brainly.com/question/8441564
Answer:
E) beta
Explanation:
The security market line (SML) can be regarded as a line that is drawn on a chart which represent the capital asset pricing model. And it allows to know the expected of security which can be attributed to the function of non-diversifiable risk as well as systematic
.It should be noted that The security market line is a positively sloped straight line that displays the relationship between expected return and beta
