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DIA [1.3K]
3 years ago
6

Suppose changes in autonomous consumption affect investment while changes in autonomous government spending do not. in this case

, identical changes in autonomous consumption and autonomous government spending
Business
1 answer:
Charra [1.4K]3 years ago
8 0
 in this case, identical changes in autonomous consumption and autonomous government spending: <span> have different effects on equilibrium income

When a factor is implemented and have two different reaction, it is safe to assume that that factor have two different effects.
For example, an increasing interest in technology(autonomous consumption) may increased the investment for tech products. The government spending may not give as much influence in this context because it wont affect the transaction between the customers and the producer
</span>
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How do you find the value of a bond, and why do bond prices change
Mars2501 [29]

Answer:

Explanation:

as the discount rate gets larger, the price of the bond will decrease. as the coupon rate increases, the bond price will increase. bond prices are calculated by taking the present value of the coupons and face value of bonds. If the coupons are larger, the present value of the coupons will also be larger.

6 0
3 years ago
What is foreign direct investment
Tema [17]

Answer:

FDI

Explanation:

Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest. Lasting interest differentiates FDI from foreign portfolio investments, where investors passively hold securities from a foreign country. A foreign direct investment can be made by obtaining a lasting interest or by expanding one’s business into a foreign country.

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3 years ago
Suppose that a country bandcountry band called Only HereOnly Here has released its first CD with WantedWanted Records at an inte
Virty [35]

Answer:

The recording label should increase the production and distribution of Here band

Explanation:

In the given question it is stated that the Music stores can markup to the price of $17.99 with continued strong sales against the listed price of $14.99.

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The markup price is the extra amount that is over the cost of product or the service.

Thus,

Here, the Markup will further increase the profit by $17.99 - $14.99 = $3

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8 0
3 years ago
A corporate bond with a 6.5 percent coupon has 15 years left to maturity. It has had a credit rating of BBB and a yield to matur
Scrat [10]

Answer:

Price change in dollars = $104.22

% decrease in price of dollars = 11.13%

Explanation:

We assume the corporate bond have a face value of $1,000

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Number of Periods = 15*2 =30

Semi annual rate of BBB bond = 7.2%/2 =3.6%

Price of BBB Bond = PV of Coupons + PV of Par Value =

Price of BBB Bond = 32.50*(((1-(1+3.6%)^-30)/3.6%)+1000/(1+3.6%)^30

Price of BBB Bond = $936.43

Semiannual Discount Rate for BB bond = 8.5%/2 = 4.25%

Price of BB Bond = PV of Coupons + PV of Par Value

Price of BB Bond = 32.50*(((1-(1+4.25%)^-30)/4.25%)+1000/(1+4.25%)^30

Price of BB Bond= $832.21

Price change in dollars = $936.43 - $832.21

Price change in dollars = $104.22

% decrease in price of dollars = $104.22 / $936.43

% decrease in price of dollars = 0.111295025

% decrease in price of dollars = 11.13%

6 0
3 years ago
The following information is available for Ivanhoe Company for 2017. Cash used to purchase treasury stock $ 167,388 Cash dividen
Kazeer [188]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

6 0
3 years ago
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