Answer:
disposable income; the real interest rate
Explanation:
The consumption function is given as
C = C₀ + C₁(Yd)
Where
C₀ = autonomous consumption
C₁ = non autonomous consumption
Yd = disposable income
From the above equation, consumption is a positive function of disposable income.
The investment function is given as
I = I₀ - I₁(r)
Where
I₀ = autonomous investment
I₁ = non autonomous investment
r = interest rate
From the above equation, it can be seen that investment is a negative function of interest rate.
I hope my answer helps you
Answer:
Cost of equity for new stock will be 12.8 %
So option (a) is correct option
Explanation:
We have given the common stock sells for $32.50
Earning per share = $3.50
Dividend pay out ratio = 60 %
So dividend will be = 3.50×0.6 = $2.1
Growth rate = 6 % = 0.06
Flotation rate = 5% = 0.05
We have to find the cost of new stock
We know that cost of equity from new stock will given by
Firms that buy goods and services and sell them at a profit.
Re-sellers purchase things with the intent of selling them to other people and businesses and do not produce new goods or services.
Answer:
the correct answer is 380,000
Explanation:
1,700,000 × 40% =680,000
680,000-300,000=380,000
The cyclically adjusted budget deficit in an economy is zero. if this economy goes into recession, then the actual government budget will be in deficit.
An economy is the area of production, distribution, trade and consumption of goods and services. Generally, it is defined as a social domain emphasizing practices, discourses, and material expressions related to the production, use, and management of scarce resources.
A nation's economy is the wealth it derives from business and industry. The Japanese economy grew by more than 10% every year. 3. Uncountable nouns. Economy is about using the minimum amount of money, time, or other resources necessary to accomplish something and not wasting anything.
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