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Delicious77 [7]
3 years ago
6

n the Baumol-Tobin model, if the nominal interest rate is 1%, the consumer's annual income is $36000, and every trip to the bank

costs $20, then it is optimal for the consumer to visit the bank ___ times a year. 2 3 4 5
Business
1 answer:
quester [9]3 years ago
3 0

Answer:

In the Baumol-Tobin model, if the nominal interest rate is 1%, the consumer's annual income is $36000, and every trip to the bank costs $20, then it is optimal for the consumer to visit the bank <u>three times </u>a year.

Explanation:

The optimal number of visit to banks = (iY/2F)0.5

i = 1% = 0.01

Y = $36000

F = $20.

The optimal number of visit to banks = (iY/2F)0.5

The optimal number of visit to banks = (0.01 * 36000 / 2* 20)0.5

The optimal number of visit to banks = (9)0.5

The optimal number of visits to banks = 3.  

it is optimal for the consumer to visit the bank 3 times a year.

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Which of the following is recommended when paying a credit card bill?
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Answer:

C. Pay more than the minimum amount every month.

Explanation:

Because credit cards have very high interest rates, and the interest is compounded every day, it is recommended to pay more than the minimum amount every month, so that the total credit card bill is paid out more quickly.

What happens when you pay more than the minimum amount every month is that you are paying not only the interest and principal that is due, but you are also paying additional principal. This additional principal payment is what will reduce the amount that will need to be paid in the future.

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Mr. Morgan earns $38,000 a year as a salesperson and a 5% commission on all his sales. He has a mortgage of $910 a month and pay
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the mortgage.

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3 years ago
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Q#1. How would you describe the word “CAREER” Explain in 5-7 sentences.
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A career is a job that you go to for most of your life. Most careers require you to go to school for them. A career is a specialized activity that you are trained to do. Not something that you learn in a couple of minutes. For example working at McDonald’s is not a career but a doctor is. (I gave you some so you can fill in based on what I said :) )
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3 years ago
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If total change in cash = $44,000, net operating cash flows = $22,000, and net investing cash flows = ($13,000); then net financ
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Answer:

Net financing cashflows are $ 35,000.

Explanation:

A company generates cashflow from three activities that are cash from operations , cash from financing activities and cash from investing activities. The company net cash flow is total of these above specified. So we can determine net financing cashflows from the equation given below.

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8 0
3 years ago
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gavmur [86]

Answer: The marginal utility is 2

Explanation:

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Marginal utility increases with an extra consumption of a good at first but later it begins to reduce as the extra good consumed doesn't really have give the consumer enough satisfaction anymore.

Regarding the question, eating 5 hotdogs gives 40 utils and eating 6 hotdogs gives 42 utils.

The marginal utility is the extra utils which will be 42-40 which gives 2 utils.

3 0
3 years ago
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