Define the term communication

You're deciding whether to install an $800 moonroof and a $400 security system in your car. Suppose the marginal benefit from th

blsea [12.9K]

Answer:

Install Security System

Explanation:

The security system should always be purchased, because, the marginal benefit of the security system is higher than the marginal cost of this system.

The marginal benefit of the security system is $600, the marginal cost of this system is $400.

In Moonroof marginal benefit is lesser than its marginal cost.

8 0

2 years ago

You observe that the inflation rate in the United States is 1.0 percent per year and that T-bills currently yield 1.5 percent an

Vedmedyk [2.9K]

Answer:

a) 4.5%

b) 7.5%

c) 9.5%

Explanation:

Given:

USA Inflation rate = 1.0%

T-bills current yield = 1.5%

a) What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 5 percent per year?

To find the inflation rate in Australia, use the formula:

RUS - hUs = RFC - hFC

Where,

RUS = T-bills current yield = 1.5% = 0.015

hUs = USA Inflation rate = 1.0% = 0.01

RFC = short-term yield of Australian government securities = 5% = 0.05

Thus,

RUS - hUs = RFC - hFC

0.015 - 0.010 = 0.05 - hFC

0.005 = 0.05 - hFC

Solve for hFC:

hFC = 0.05 - 0.005

hFC = 0.045 = 4.50%

Inflation rate in Australia = 4.50%

b) What do you estimate the inflation rate to be in Canada, if short-term Canadian government securities yield 8 percent per year?

Use the same formula as in part A.

RUS - hUs = RFC - hFC

Here, RFC = 8% = 0.08

Thus,

0.015 - 0.010 = 0.08 - hFC

0.005 = 0.08 - hFC

Solve for hFC

hFC = 0.08 - 0.005

hFC = 0.075 = 7.50%

Inflation rate in Canada = 7.5%

c) What do you estimate the inflation rate to be in Taiwan, if short-term Taiwanese government securities yield 10 percent per year?

Use the same formula as in part A.

RUS - hUs = RFC - hFC

Here, RFC = 10% = 0.1

Thus,

0.015 - 0.010 = 0.10 - hFC

0.005 = 0.10 - hFC

Solve for hFC

hFC = 0.10 - 0.005

hFC = 0.095 = 9.50%

Inflation rate in Taiwan= 9.5%

8 0

3 years ago

Suppose a professional basketball game is to be played at a suburban arena, which increases demand for parking on the night of t

marta [7]

Answer:

A. the supply of parking will be more elastic and the price of parking will increase by a relatively large amount the night of the game.

4 0

3 years ago

Nour's organization buys raw materials from all over the world, and in turn, sells finished goods world-wide. What type of organ

Alja [10]

There are a lot of firms. Organizational buyers is the type of organization that Nour run.

<h3>What is Organizational buyers?</h3>

Organizational buyers are known to be people or firm that often buy direct from the manufacturers of products as at the time when the products are complex and said to be expensive pieces of equipment that needs custom design and installation.

Note that the organizational buyer often purchases in a lot of large volumes of goods to sell to others.

Learn more about Organizational buyers from

brainly.com/question/536509

4 0

2 years ago

The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the econom

Naily [24]

The government can use <u>an expansionary fiscal policy </u> in the form of <u>an increase in government spending </u> to increase the level of aggregate demand in the economy.

<h3>How does Government Spending Affect the Economy ?</h3>

There is a high possibility that the rise in taxes will negate the impact of rising government spending which would leave Aggregate Demand (AD) unchanged. However, it is possible that increased spending and rise in tax could lead to an increase in GDP.

In a recession, consumers may reduce spending leading to an increase in private sector saving. Therefore a rise in taxes may not reduce spending as much as usual.

The increased government spending may create a multiplier effect. If the government spending causes the unemployed to gain jobs then they will have more income to spend leading to a further increase in aggregate demand. In these situations of spare capacity in the economy, the government spending may cause a bigger final increase in GDP than the initial injection.

However, if the economy is at full capacity, the increase in government spending would tend to crowd out the private sector leading to no net increase in Aggregate demand from switching from private sector spending to government sector spending.

<h3>Which type of policy does the governments adopt to increase the aggregate demand in the economy?</h3>

Expansionary fiscal policy increases the level of aggregate demand, either through increases in government spending or through reductions in taxes. Expansionary fiscal policy is most appropriate when an economy is in recession and producing below its potential GDP.

Therefore, we can conclude that the correct option is C.

Your question is incomplete, but most probably your full question was:

The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the economy.

A. a contractionary fiscal policy; a reduction in taxes

B. an expansionary fiscal policy; an increase in corporate taxes

C. an expansionary fiscal policy; an increase in government spending

D. a contractionary fiscal policy; an increase in taxes

Learn more about Expansionary Fiscal Policy on:

brainly.com/question/25589179

#SPJ4

7 0

2 years ago