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Mnenie [13.5K]
3 years ago
8

Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borr

ow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equipment, so investment would be zero. But if the interest rate were 16 percent, businesses would find it profitable to invest $10 billion. If the interest rate were 12 percent, $20 billion would be invested. Assume that total investment continues to increase by $10 billion for each successive 4 percentage point decline in the interest rate. Refer to the information. Which of the following is an accurate verbal statement of the described relationship?
a. i = 20-10L
b. i = 20-4L
c. i = 20 - 4l
d. i = 24 - 4l
Business
1 answer:
Natalija [7]3 years ago
5 0

Answer:

c. i = 20 - 4l

Explanation:

Investment=0 when interest rate is 20%

And then there is an investment of 10 billion for each 4% decrease in interest rate

Thus a unit % decrease in interest rate is 2.5billion

Thus Interest rate = 20-0.4 Investment

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Which was not an example of a business ethical dilemma discussed by Albert Carr in his article on business bluffing?
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Answer:

The correct answer is d. Failure to support climate-change treaties.

Explanation:

An ethical dilemma is a situation in which an apparent operational conflict between two ethical imperatives is presented in such a way that obedience to one of them implies the transgression of the other. In general, it is called an ethical dilemma when an agent (the professional, in this case) has reasons to carry out two actions (or more), each of which favors a different principle, and it is not possible to fulfill them without violating any of they. In this way, the agent is in a situation in which he is condemned to commit a foul: no matter what he does, he will do something "wrong" or will miss an obligation.

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3 years ago
Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or
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Answer:

a. For each country, graph the production possibilities frontier. Suppose that without trade the workers in each country spend half their time producing each good. Identify this point in your graphs.

  • attached graph

b. Who has the comparative advantage in the production of shirts? What about for computers?

  • China has the comparative advantage in the production of shirts, while the US has the comparative advantage in the production of computers.

c. If these countries were open to trade, which country would export shirts? Give a specific numerical example and show it on your graphs. Which country would benefit from trade?

  • China would export 50 million shirts in exchange for 5 million computers (or more if they can). Trade would benefit the US since it will only need to trade 5 million computers in exchange for 50 million shirts, and it will still have 15 million computers that it can consume or trade with come other country.

d. Explain at what price of computers (in terms of shirts) the two countries might trade.

  • the minimum and maximum prices would be 5 to 10 shirts per computer. If the price of shirts per computer is 10 or near 10, then the US wins more. If the price of shirts per computer is 5 or near 5, then China wins more.

Explanation:

opportunity cost of producing 1 shirt in the US = 20/100 = 0.2 computers

opportunity cost of producing 1 computer in the US = 100/20 = 5 shirts

opportunity cost of producing 1 shirt in China = 10/100 = 0.1 computers

opportunity cost of producing 1 computer in China = 100/10 = 10 shirts

without trade:

  • total production of shirts in the US = 50 million
  • total production of computer in the US = 10 million

  • total production of shirts in China = 50 million
  • total production of computer in China = 5 million

with trade:

  • total production of computers in the US = 20 million
  • total production of shirts in China = 100 million

8 0
3 years ago
Rockville Enterprises manufactures woodworking equipment and is incorporated and based in Evansville, Indiana. All of itsreal pr
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Answer:

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Answer:

Encumbrances $1000

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Explanation:

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