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3 years ago

Which of the following concerns about the national debt are substantive? Check all that apply.

1 answer:

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Answer: A. Government's borrowing to refinance the debt may lead to higher interest rates. Higher interest rates reduce investment spending, leaving future generations with a smaller stock of capital goods.

Explanation:

When the Government replaces a debt with another debt by means of Refinancing, they will probably be charged a higher interest rate because replacing debt with another debt is not generally ideal.

A higher interest rate means a higher repayment amount. Should the government keep paying higher and higher rates for debt, they'll have to reduce their spending on Investment. Investment creates Capital Goods such as machines and equipment. A reduction in Investment spending therefore reduces future generations' access to capital goods.

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The price of a home is $400,000. The mortgage company requires a downpayment of 20% and 1 point at the time of closing for a 30-

ASHA 777 [7]

(a) down payment = 0.20*400000=80000

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3 years ago

Starting last December, one of the three major credit-score trackers, Experian, added paying monthly rent as one of its criteria

sattari [20]

<span>People who are renters of apartments would be positively affected by this addition to credit score calculation. In addition, people who rent equipment for construction of buildings and other long-term projects would see their scores go up if they stayed on-time with their payments for the use of the equipment.</span>

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3 years ago

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand

defon

Answer:

Explanation:

Fixed costs - will remain similar no matter of output amount

Variable costs - vary with the change in output

Average cost=(Fixed cost(FC) + Variable cost(VC))/number of units produced

VC = VC per cup of coffee served *cup of coffee served in a week

Total Cost(TC)= FC+VC

Average cost=TC/Cup of coffee served in a week

1. Let's calculate for 2000 cups of coffee:

FC remain the same! = $1200

VC=0.22*2000= $440

TC=FC+VC= 1200+440= $1640

Average cost of 1 cup of coffee= TC/#of cups=1640/2000=$0.82

2. Calculation for 2100 cups:

FC=1200

VC=0.22*2100=462

TC=1200+462=1662

Av cost=1662/2100=0.79

3. Calculation for 2200 cups:

FC=1200

VC=0.22*2200=484

TC=1200+484=1684

Av cost=1684/2200=0.77

As the number of cups increased from 2000 to 2100, the average cost per cup devreased 0.82 to 0.79. Then when number of cups increased to 2200, average cost decreased to 0.77. The reduction is due to the variable cost

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3 years ago

If the price of a video game increased, what would the law of supply predict about the quantity supplied of the game?

Lana71 [14]

The law of supply states that all things being equal, an increase in price leads to an increase in quantity supplied.
Hence, the quantity of the game supplied will increase

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3 years ago

The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sale

nirvana33 [79]

<u>Solution and Explanation:</u>

calculating the increase in the net operating income is as follows:

S.no Particulars and explanation Amount

1. Sales ( $268000 + 84000 ) 352000

2. Contribution ( 1 multiply with 40 percent) 140000

3. Fied expense ( $119200 plus $6200 ) 125400

4. Net operating income ( 2 step minus 3 step) $14600

therefore, net operating income increased by $ 14600 plus $12000

Note: the sales were not given, so i have taken or assumed. Please change the figure if there is different figure of sales in the question given.

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3 years ago