Answer:
None of the above is contrary to the predictions of the model.
Explanation:
The budget deficit is when the government spends more than the revenue it makes. Based on the information given, the trade deficit of the United States will grow.
Furthermore, the real exchange rate of the dollar will appreciate and the net capital outflow of the United States will fall as imports will be more than goods exported.
Therefore, the correct option is "None of the above is contrary to the predictions of the model".
<span>B. It is the opportunity cost of the best alternative that was not done or that was abandoned. In economics, this means the cost of the investment and the value of that opportunity. It refers to the value discarded by the realization of the same and the non-investment.</span>
Answer:
2. Sales forecasts $475,000
3. Ben needs 5 more hours
Explanation:
2.
The sales are $500,000. The trend is a 5% reduction in the current year sales figure for next year's performance.
The sales forecast for next year will be a decrease of 5% of this year sales.
next sales will be $500,000 less 5%
Therefore, the next sales forecast will be 95% of $500,000
=95/100 x $500,000
=0.95 x $500,000
=$475,000
Forecasts will be $475,000
3.
Ben requires 20 hours of continuous training.
So far, he has done 900 minutes.
900 minutes is equivalent to 900/60 hours
=15 hours.
To complete the study, Ben requires 20 hrs -15 hours
=5 more hours
Answer: 1.76
Explanation:
Given the following :
R=1.02,
S0 = 100
u=1/d= 1.05
Strike(k) = 102
Total Payoff = (probability of upside × upside Payoff) + (probability of downside × downside Payoff)
Upside Price = u × S0 = 1.05 × 100 = 105
downside Price = S0/u = 100/1.05 = 95.24
Upside Payoff = upside price - strike rate =(105 - 102) = 3
Upside probability :
[e^(r - q) - d] / u - d
E = exponential, q = Dividend (Dividend is 0, since the stock does not pay dividend)
d = 1/d = 1/1.05 = 0.9523809
e = 2.7182818
[2.7182818^(1.02% - 0) - 0.9523809] / (1.05 - 0.9523809)
[1.0102521 - 0.9523809] / 0.0976191
0.0578712 / 0.0976191
= 0.5928266
Probability of downside = 1 - p(upside)
P(downside) = 1 - 0.5928266
P(downside) = 0.4071733
Therefore, total Payoff =
(0.5928266 × 3) + (0.4071733 × 0)
= 1.7784798
European. Call option:
Total Payoff / (1 + r%)
1.7784798 / (1 + 1.02%)
=1.7784798/ (1 + 0.0102)
= 1.7784798 / 1.0102
= 1.7605224
= 1.76
Implementing its sister strategy, the fiscal policy. This makes changes to tax levels so if consumer spending has declined, the taxes can be lowered so people have more money to spend, thus increasing consumer spending.