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shepuryov [24]
3 years ago
9

The small island nation of kaboom is a simple economy with no​ government, no​ taxes, and no imports or exports. kaboomers​ (cit

izens of​ kaboom) are creatures of habit. they have a rule that everyone saves exactly 40 percent of income. assume that planned investment is fixed and remains at 200 million kaboomian dollars. further assume that autonomous consumption​ (independent of​ y) is​ zero, so consumption​ (c) is mpc times upper y .
Business
1 answer:
Luden [163]3 years ago
6 0

HERE IS/ARE THE FULL QUESTION(S):

The small island nation of Kaboom is a simple economy with no​ government, no​ taxes, and no imports or exports. Kaboomers​ (citizens of​ Kaboom) are creatures of habit. They have a rule that everyone saves exactly 40 percent of income. Assume that planned investment is fixed and remains at 225 million Kaboomian dollars. Further assume that autonomous consumption​ (independent of​ Y) is​ zero, so consumption​ (C) is MPC times Upper YMPC×Y.

The following data are estimates for the island of​ Kaboom:

bullet• Real GNP​ (Y): 422 million Kaboomian dollars

bullet• Planned investment spending ​(I)​:225 million Kaboomian dollars

You are asked by the business editor of the Explosive Times​, the local​ newspaper, to predict the economic events of the next few months.

Based on the data​ given, you predict inventories will DECREASE and the level of real GNP will INCREASE.

Things will stop changing when SAVINGS EQUAL INVESTMENT.

Kaboom's economy will reach equilibrium when its real GNP​ = 563 MILLION Kaboomian dollars

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Is a liability that represents the amount the company owes to others as a result of issuing a promissory note.
solong [7]

A note payable is a financial document considered a liability that represents that it records that the company that signs it has the obligation to pay on the specific date.

<h3>What is a note payable?</h3>

It is a document that commits its issuer (the company) to pay a certain amount, within a specific period.

Its characteristic is the exchange action, which refers to the document being returned to the subscriber in exchange for payment.

Therefore, we can conclude that a note payable is a financial document considered a liability that represents that it records that the company that signs it has the obligation to pay on the specific date.

Learn more about a note payable here: brainly.com/question/25738368

4 0
2 years ago
The income elasticity of demand for housing property is exactly 1.40. Due to a recession, you expect incomes to drop by 5% next
a_sh-v [17]

Answer:

Buy 7% less houses

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income

Income elasticity of demand = percentage change in quantity demanded/ percentage change in income

1.40 = percentage change in quantity demanded/ 5%

Percentage change in quantity demanded = 1.4 × 5% = 7%

Because the coefficient of elasticity is greater than one, it means demand is income elastic. This means quantity demanded is responsive to changes in income. A fall in income would reduce the quantity demanded.

I hope my answer helps you

5 0
3 years ago
Randy is 60 years old and realizes that his reading speed and eyesight are not as robust as they were when he was younger. he st
Lady bird [3.3K]
Randy now listens to the books on tape. randy is using Selective optimization with compensation  in order to participate in the book club.  It is<span> a strategy for improving health and well being in older adults, it is also a model for successful ageing. Seniors should select and optimize their best abilities and most intact functions while compensating for declines and losses.  </span>
7 0
3 years ago
A partnership began its first year of operations with the following capital balances: Young, Capital $ 143,000 Eaton, Capital $
PtichkaEL [24]

From the information given, the balance that will be in the capital account of Thurman at the end of the second year will be $132860.

The partners account at the end of the second year for Thurman will be calculated thus:

  • Beginning capital = $126100
  • Add: Net income = $19760
  • Less: Drawings = $13000
  • Ending capital = $132860

Therefore, the balance in the account will be $132860.

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5 0
3 years ago
Firm A has 11 equally risky capital budgeting projects, each costing $29.608 million and each having an expected rate of return
Vanyuwa [196]

Answer:

How much capital should Firm A raise and invest?

$296.08 million should be raised and invested in projects.

Explanation:

WACC = 8% when A's retained earnings breakeven point = $296.08 million

Expected rate of return = 8.25%

WACC is less than expected rate of return.

Therefore, WACC is less than expected rate of return, which is beneficial, since cost of capital is less than expected rate of return.

therefore, $296.08 million should be raised.

If the firm A raises, more than $296.08 million, <u>WACC</u> would be <u>increasing</u> to <u>8.5%</u>, this is greater than the <u>expected rate of return i.e. 8.25%. </u>

Hence raising amount <u>more than $296.08 million</u> will not be beneficial.

Hence it is clear that amount which should be raised and invested =$296.08 million.

Investment required in one project=$29.608 million.

Number of projects which can be started =$296.08/$29.608  =10 projects

All are equally risky therefore it does not matter which project should be left.

Hence, $296.08 million should be raised and invested in projects.

5 0
3 years ago
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