Answer:
C:an increase in both the inflation and real growth rates in the short run.
Explanation:
According to the AD-AS model, if the economy is initially at its long-run potential growth rate, then a temporary increase in the growth rate of investment spending will cause an increase in both the inflation and real growth rates in the short run.
Answer:
b. It creates equality throughout society
Explanation:
Specialisation & Trade refer to tendency of countries to produce goods of their specialisation & trade them with each other , rather than each country producing each good.
It leads to increase in productivity from knowledge specialisation, based on advantage (absolute, comparative) based production. It also makes people better off, increase in welfare due to choice expansion among differing preferences.
However, it is not in anyways connected to equality throughout society.
I think its either to balance available resources and expenses or to plan future income and spending
Answer:
$4540.19
Explanation:
Step 1: Get the formula for the value of the bond in 2018
Formula= P * (1+r)n
P= Investment = $5000
r= Coupon rate=6%
n= Period or number of years = 6 years
Step 2: Calculate the value of the bond in 2018
Value of the bond in 2018= 5000 * (1+ 0.06)6
= 7092.60
Step 3: Calculate the Present value of the bond
Formula= (P x Present Value Factor) + (Interest x The present value interest factor of an annuity (PVIFA))
(P x Present Value Factor) = (5000 x 1\(1+r)^n)
where r= rate of return= 8%
n= years = 6
(Interest x The present value interest factor of an annuity (PVIFA) =
Interest = (Coupon rate x Investment)
PVIFA= 1\(1+r)^n}
where r= rate of return= 8%
n= years = 6
= (5000 x 0.6307) + (300 x 4.6223
)
=4540.19
Answer:
The effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits
Explanation:
In order to calculate the effect on Morgantown's overall profit we would have to make the following calculations:
Contribution margin per unit for Lock Division = Selling price – Variable costs = $40 - $22 = $18
Contribution lost by lock division if Cabinet division buys from outside = $18 * 10,000 = $180,000
Cost per unit saved by Cabinet division = $40 - $36 = $4
Total cost saved by cabinet division = $4 * 10,000 = $40,000
Net decrease in profit = Contribution lost – Cost saved = $180,000 - $40,000 = $140,000
Therefore, the effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits.
