Answer: The correct answers are "expected" and "realized".
Explanation: If Asset A has higher systematic risk than asset B. You can be sure that asset A's <u>expected</u> return will be higher than asset B's, but you can't be sure if asset A's <u>realized</u> return will be higher than asset B's.
Answer:
$32,300
Explanation:
With regards to the above, the amount of total assets is the addition of current assets + Fixed assets.
= Accounts receivables + Cash + Truck equipment
= $7,000 + $7,300+ $8,000 + $10,000
= $32,300
Therefore ,
Total assets = $32,300
Answer:
(a) 0.7
(b) 3.33
(c) -$210
(d) -$147
(e) -$1 trillion
Explanation:
(a) Marginal propensity to consume (MPC) = 0.7
(b) Multiplier of this economy:
= 3.33
(c) Decrease government purchases by $300 billion,
Initial change in consumption = Change in government purchases × MPC
= $300 × 0.7
= -$210 billion
(d) This decreases income yet again, causing a second change in consumption equal to:
= Initial change in consumption × MPC
= -$210 × 0.7
= -$147 billion
(e) The total change in demand resulting from the initial change in government spending is:
= Change in government purchases × Multiplier
= $300 × 3.33
= -$1 trillion
Answer:
Innovation, job creation, financial independence and financial success
Explanation:
The United State of America is a capitalist state where individuals control the factors of production. Government,s participation is reduced to the minimal which might only be regulation.
Small businesses in America grows to become big companies as time goes on. They contribute in no small way to the economy of the united state in the following ways: innovation, job creation, financial independence and financial success.
Answer:
The role played by banks in the economic growth is that savings promote the generation of loans, and generate funds to new businesses.
Explanation:
Banks use the funds on the savings accounts to generate credits to other clients that might be persons or companies.
Suppose that you have $1000 dollars saved in your bank account. Then, your bank only needs to keep a deposit of the 10% from the $1000. This means to save $100 and use the rest $900 to generate credits to other customers.
The $900 remaining will be loan to individuals or companies to finance new projects such as: Buying a car, house, invest in machinery or re design a branch from a cloth store.
These projects boost economic growth as they move the economy with consumption, and investment.