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labwork [276]
3 years ago
13

If the investment accelerator from an increase in government purchases is larger than the crowding-out effect, then

Business
1 answer:
Ymorist [56]3 years ago
6 0
<span>If the investment accelerator from an increase in government purchases is larger than the crowding out effect, then the multiplier is probably greater than one. The crowding out effect within economics is defined as a theory that when public sector spending rises, it can drive down or eliminate private sector </span>spending. Public sector spending is government spending whereas private sector spending is for-profit businesses that aren't owned or operated by the government. 
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The Bawl Street Journal costs $580, payable now, for a 2-year subscription. The newspaper is published 252 days per year (5 days
elena-s [515]

Answer:

The effective annual rate of interest is "10.38%".

Explanation:

The given values are:

Nominal annual interest rate,

Q = 10%

i.e.,

   = 0.10

Quarterly compounding,

q = 4

Now,

The effective annual rate of interest will be:

=  [{1 + (\frac{Q}{q} )}^q] - 1

On substituting the given values in the above formula, we get

=  [{1 + (\frac{0.10}{4} )}^4]  1

=  [(1 + 0.025)^4] - 1

=  (1.025)^4-1

=  1.10381289 - 1

=  0.10381289

On converting it into percentage, we get

=  10.38%

8 0
3 years ago
RT is about to loan his granddaughter Cynthia $10,000 for 1 year. RT’s TVOM, based upon his current investment earnings, is 12%,
qaws [65]

Answer:

They should not be able to successfully negotiate the terms of this loan within these parameters.

Explanation:

It has been provided that RT earns 12% on his current investments and would not like to receive an interest rate of less than 12% on the loan he gives.

if RT gives a loan of $10,000 for one year, he would charge an interest rate of minimum 12%.  

Interest = $10,000*0.12

             = $1,200

RT requires $1,200 in interest.

It has been provided that Cynthia earns 8% on her investment.

If she borrows $10,000 and invests the amount for one year, she can earn 8% return on such amount.  

Earning = $10,000*0.08

             = $800

Cynthia is going to earn $800

RT requires a minimum of $1,200 as interest for 1-year loan he gives while Cynthia can pay a maximum of $10,000 as interest for 1-year loan she takes. there is mismatch between the minimum expectation to receive of lender and the maximum expectation to pay of borrower.

Therefore, They should not be able to successfully negotiate the terms of this loan within these parameters.

6 0
3 years ago
The _______ was a foreign policy embarrassment for the United States during the Kennedy Administration. 
mrs_skeptik [129]
The Bay of Pigs Invasion was a foreign policy embarrassment for the Kennedy Administration.
When John Kennedy assumed the presidency after Dwight Eisenhower, he was faced with the pressure to act on Cuban dictator Fidel Castro's growing relationship with the Soviet Union (yet another of US' formidable enemies).
His senior advisers urged him to authorize the attack on Cuba and initiate a movement to overthrow Fidel Castro. This played on Kennedy's foreign principle which is for Democratic countries such the US to show a strong force against dictatorships like Castro's. In April 1961, the invasion at the Bay of Pigs failed extremely. Castro was quick to mobilize his militia to counter Kennedy's botched plan. Aside from this, Kennedy made some worst decisions that nailed the coffin shut. Thus the Kennedy Administration suffered a lot of damage due to this failure. 

3 0
3 years ago
Read 2 more answers
Suppose a company owns a warehouse that costs $500,000 and depreciates at $10,000 per year. If the interest rate is 5%, what is
netineya [11]

Answer: $35,000

Explanation:

Implicit rental price = Interest payment + Depreciation

Interest payment = 5% * 500,000

= $25,000

Implicit rental price is therefore:

= 25,000 + 10,000

= $35,000

4 0
3 years ago
You have been working nights and weekends to get a project completed at work. You are successful, and a couple of weeks later yo
slega [8]

This BEST illustrates the value of Positive reinforcement.

<h3><u>Explanation:</u></h3>

When a person is rewarded something for doing certain tasks it refers to Positive reinforcement. This is given because for rewards that person will be doing these actions. The rewards that are given for their actions acts as a a reinforcing stimulus. For instance consider that a dad gives his daughter some gifts for doing some actions or for good deeds.  

In the given example, the project that has been completed by you by working day and nights and you receive a bonus cheque from your boss after two weeks. This acts as a reward for your work and motivates you to further work happily. This bets illustrates the value of Positive reinforcement.

5 0
3 years ago
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