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djverab [1.8K]
3 years ago
6

Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. Assumi

ng this economy is closed, calculate consumption, government purchases, national saving, and investment.
Business
1 answer:
vlada-n [284]3 years ago
5 0

Answer: Consumption = $6 trillion

government purchases = $1.3 trillion

national saving = $0.7 trillion and

investment = $0.7 trillion

Explanation:GDP is the market value of all final goods and services within an economy during a given period.

GDP = Consumption + Investment/National Savings + Government Expenditure/purchases (in a closed economy)

National Savings/ Investment = Private saving + public saving = $0.5 trillion +$ 0.2 trillion = $0.7 trillion.

Government purchases = Taxes - Public saving = $1.5 trillion - $0.2 trillion = $1.3 trillion

Since, GDP = Consumption + Investment/National Savings + Government Expenditure/purchases (in a closed economy)

Therefore, Consumption = GDP - Investment - Government Expenditure

Consumption = $8trillion - $0.7trillion - $1.3trillion = $6 trillion

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As a management function, organizing involves:

  1. developing organization structure;
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Therefore, the option D holds true.

<h3>What is the significance of management functions?</h3>

The management functions were proposed by Henry Fayol, and can be referred to or considered as the essential functions for efficient functioning of a business organization.

Organizing is the second management function. It is performed after the planning function has been accomplished successfully by the organization to develop its structures in order to designate jobs.

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1 year ago
Projects A and B are mutually exclusive and have an initial cost of $82,000 each. Project A provides cash inflows of $34,000 a y
MrRissso [65]

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If discount rate is 11.7% Project B should be accepted.

If discount rate is 13.5% both projects should be rejected

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If the Net present value of Project A is higher than that of project B, we will accept project A and vice versa.

<u>Under 11.7% Discount Rate</u>

Net Present Value-Project A = -82000 + 34000 / 1.117  +  34000 / 1.117²  +   34000 / 1.117³  = $85.099

Net Present Value-Project B = -82000 + 115000 / 1.117³ = $516.029

Project B should be accepted as it has a higher NPV.

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<u>Under 13.5% Discount Rate</u>

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Net Present Value-Project B = -82000 + 115000 / 1.135³  = - $3347.91

Both projects should be rejected as both have negative NPVs

7 0
4 years ago
ABC Co. had 600,000 shares of Common Stock, 40,000 shares of Convertible Preferred Stock, and $3,000,000 of 6% Convertible Bonds
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Answer:

a. Net income for 2021                                               $1,600,000

Less: Preferred dividends                                          <u>$120,000  </u> (40000*$3)

Net income for Common Stockholders                    $1,480,000

Divide by Common Shares outstanding                   <u>600,000 </u>

Basic Earnings per share for 2021                             <u>$2.47      </u>

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b. If company's preferred stock were convertible into common stock, diluted earnings per shares will also have to be calculated.

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3 years ago
Suppose you consider buying a bond promising to pay you $25 one year from now and then the same amount every year through the fi
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$3,667.44

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The amount you would be willing to pay today can be determined by finding the present value of the cash flows

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To find the PV using a financial calculator:

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3 years ago
Which of the following is/are true about specialists? I. Investment banks generally cannot be specialists. II. Specialists are u
Alborosie

Answer:

The correct answers are: I. Investment banks generally cannot be specialists. and V. Specialists help maintain continuous trading.

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Stock market specialists execute purchase or sale orders commissioned by a stockbroker. In the same way, when there are not enough buyers or sellers, specialists buy or sell on their own against the market trend. That is, they have the obligation to buy when there is not enough demand and the obligation to sell when there is not enough supply, in order to provide stability and liquidity to the market. Specialists play a role comparable to that of an air traffic controller: just as air traffic controllers are in charge of maintaining order among aircraft in flight, specialists maintain a fair and orderly market in the values assigned to them.

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