Answer:
The answer is 33.98.
Explanation:
Discount the accumulation of discount in the 19th coupon 18 periods to find the accumulation of discount in the first coupon. Then find the FV of an annuity with 8 as the number of periods with the accumulation of discount in the first coupon as the payment and and you will get 33.98.
Given di19 = C(i − g)
= C(i − g)
= 8, So
= C(i − g)(
+
+...+
)
=8
=33.98
<span>The price level would be lower than would otherwise have occurred.
Since the economy is a inflation gap </span><span>input prices will eventually increase in the
absence of any fiscal policy, causing the price level to rise and output to fall back to potential
output. The contractionary fiscal policy will reduce aggregate demand and lower output to
potential output while at the same time lowering the price level. Thus the only difference
<span>between the two is a lower price level with the contractionary fiscal policy.</span></span>
Answer: Greater the MPC
Explanation:
The Marginal Propensity to consume refers to how much Economic consumption increases or decreases due to a change in income.
The formula for MPC is;
= Change in Consumption/Change in Income.
Consumption is a major component of GDP so it has a direct influence on Economic output. In other words, the larger the level of consumption, the higher the higher the output.
As evident from the equation, if the change in consumption is higher than the change in income, the MPC will be larger. A larger MPC therefore corresponds to a higher Consumption.
If a higher Consumption leads to a larger output and a larger MPC corresponds to a higher Consumption then that means that a higher MPC leads to a larger output.
Answer:
A. increase; decrease; increase
Explanation:
If the inflation of United States is lower than in other countries, it means that the price level of United States products are relatively lower than price of products in other countries. So that, the foreign consumers want to buy U.S products more, leading to the increase in U.S. export.
Similarly, as the price of products in other countries are higher than that in the U.S., so that the U.S. residents want to buy domestic products more, reducing the imports of products from other countries, leading to the decrease in the U.S. import.
As the Net export = Export ↑- Imports↓
=> The Net export of US would increase
<span>Aaron is writing a persuasive request to his supervisor. What should he do in the closing of his message? Motivate his supervisor to take action.
When you are writing to persuade someone of something, your goal is to get them to do what you want. If Aaron motivates his supervisor to do what he wants, he persuaded them to do it and the goal of his request worked.
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