All categories

3 years ago

When the federal government raises less money than it spends in a year it is called?

Business

1 answer:

Snezhnost [94]3 years ago

4 0

Budget deficit is the condition that exist when the government raises less revenue then it spent

You might be interested in

An individual is now 50 years old, that he plans to retire in 10 years, and that he expects to live for 25 years after he retire

Nutka1998 [239]

Answer:

Ans. He must save during each of the following 10 years, at the end of each year $32,452.

Explanation:

Hi, in order to find the amount of money that he should have in ten years so he can receive an annual payment of $65,156 for 25 more years (24 payments), we need to bring to present value all 24 payments to year 10. Let me show you the formula.

$PresentValue_{10} =\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }$

Where:

A= $65,156

n= 24

r= 0.08

Therefore the present value in year 10 is:

$PresentValue_{10} =\frac{65,156((1+0.08)^{24}-1) }{0.08(1+0.08)^{24} }=686,012$

So that is our present value in year 10, or to put it in other words, our future value (if we look at it from year 0). Now we need to find the annuity (amount to save) that with account for $686,012, plus that $100,000 that he already has saved.

Every should look like this.

$686,012=100,000*(1+0.08)^{10} +\frac{A((1+0.08)^{10}-1) }{0.08(1+0.08)^{10} }$

And we solve this equation for "A".

$686,012=A(14.4865625)+215,892$

$A=\frac{(686,012-215,892)}{14.4865625} =32,452$

Best of luck.

5 0

3 years ago

The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the followi

Elanso [62]

Answer:

the Cash Received from Customers is $548,400

Explanation:

The computation of the cash amount received by the customers is as follows:

Cash Received from Customers is

= Sales + Decrease in Accounts Receivables

= $516,400 + $32,000

= $548,400

hence, the Cash Received from Customers is $548,400

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0

3 years ago

The fed can increase the federal funds rate by

Stella [2.4K]

The answer is selling Treasury bills, which decreases bank reserves. The government securities that are used in open market processes are Treasury bills, notes or bonds. If the FOMC needs to grow the money supply in the economy it will acquire securities. On the other hand, if the FOMC wants to decrease the money supply, it will vend its securities.

5 0

3 years ago

In a concentrated network configuration:

seraphim [82]

Answer:

Explanation:

Here, in this question, we are to select which of the options is best.

The correct answer to this question is that in a concentrated network configuration, firms allow each site on the network to operate with full autonomy.

What this means is that each site in the network operate independently of the other sites.

A site is thus an autonomous entity but still part of the concentrated network

7 0

3 years ago

GenX has a target capital structure of 40 percent common stock, 5 percent preferred stock, and 55 percent debt. Its cost of equi

AVprozaik [17]

Answer:

12.085 %

Explanation:

WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt

Remember to use the after tax cost of debt :

after tax cost of debt = interest x ( 1 - tax rate)

= 8.00 % x (1 - 0.35)

= 5.20 %

therefore,

WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55

= 12.085 %

thus

the firm's WACC given a tax rate of 35 percent is 12.085 %

6 0

3 years ago