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3 years ago

If private investment is relatively sensitive to interest rates, then a fiscal expansion financed by government bond sales will:

Business

1 answer:

irga5000 [103]3 years ago

5 0

Answer:

The correct answer is letter "C": raise output by a relatively large amount.

Explanation:

Typically, to boost production in the economy, the government tends to sell securities of its treasury causing the interest rate to fall. Lower interest rate promotes private investments increasing the country's growth. If the investment in that country is sensitive to the interest rate, the output rise is likely to be significant.

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The unemployment rate may underestimate the true extent of unemployment if: Question 26 options: many part-time employees would

den301095 [7]

Answer:

there are a large number of people working in the underground economy.

Explanation:

The unemployment rate is the rate of people in the labour force that is without a job but they are actively looking for employment

Types of unemployment

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.

Frictional unemployment: the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom

If a large number of people are working underground, they would not be counted as part of the labour force and so the labour force would be smaller. This understates unemployment rate

7 0

3 years ago

You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect

Y_Kistochka [10]

Answer: See explanation

Explanation:

a. How much money will you invest in Stock Y?

Let the weight of Stock X = x

Let the weight of Stock Y = (1 - x)

Expected return of stock X = 11.4%

Beta of stock X = 1.25

Expected return of stock Y = 8.68%

Beta of stock X = 0.85

The Portfolio Return will then be calculated as:

= (Weight of Stock X × Return of Stock X) + (Weight of Stock Y × Return of Stock Y)

0.127 = [x × 0.114 + (1 - x) × 0.0868]

0.127 = [x × 0.114 + 0.0868 - x × 0.0868]

0.127 = x × 0.0272 + 0.0868

0.127 - 0.0868 = x × 0.0272

0.0402 = 0.0272x

x = 0.402/0.0272

x = 1.4779

Weight of Stock X = 1.4779

Therefore, Weight of Stock Y will be:

= 1 - 1.4779

= -0.4779

The amount that's invested in Stock Y will be:

= $100,000 × (-0.4779)

= -$47,790

b. What is the beta of your portfolio?

Portfolio Beta will be calculated as:

= 1.4779 × 1.25 + (-0.4779) × 0.85

= 1.44

4 0

3 years ago

Assume that at the end of 2018, Clampett, Inc. (an S corporation) distributes long-term capital gain property (fair market value

boyakko [2]

Answer: Income J. D. recognize as a result of the distribution: $45000

Explanation:

First we'll compute the share of gain on distribution,

Share of the gain on the distribution = $40,000 - $25,000

i.e. $15,000

Now , we'll add the increase in basis from gain from property distribution,

i.e. ($15,000 original basis + $15,000 increase in basis from gain from property distribution)

So income to be recognized :3000+15000 = $ 45000

6 0

3 years ago

Read 2 more answers

A local chamber of commerce plans a seminar on ""the social responsibility of business in our community. "" what does the term r

Mashcka [7]

A local Chamber of Commerce plans a seminar on “the social responsibility of business in our community.” What does that term reference?

( The expectations that the community imposes on firms doing business inside its borders.) correct answer of your question ✅

8 0

2 years ago

Gail Griffith, manager of the finance division, distributes relevant information every day to all her employees, enabling them t

cestrela7 [59]

The complete question should be:

Gail Griffith, manager of the finance division, distributes relevant information every day to all her employees, enabling them to make quality decisions. Gail is performing which of the following roles?

A.) Monitor Role.

B.) Disseminator Role.

C.) Spokesperson Role.

D.) Disturbance handler Role.

E.) Figurehead Role.

Answer: Disseminator Role.

Explanation:

Gail Griffith in performing in distributing relevant information to her employees about the job for the day is performing a dissemination role. The dissemination role is a role carried out by an individual, where the individual spreads useful to members of a team/organization to enable their efficient functioning.

8 0

3 years ago