Answer:
c. Increase by $0.1 trillion
Explanation:
Investment spending Multiplier is a concept in economics that measure how a given change in investment increases output. So if current output of $13.5 trillion must increase to $14 trillion, we employ the multiplier formula to derive what amount of investment spending is needed to get $o.5trillion increase in output.
(change in output)/ (change in investment) = 1/(1-mpc)
Note that mpc means marginal propensity to consume.
Let change in investment = X
change in output = 14 - 13.5 = $0.5trillion
mpc = 0.8
(0.5)/X = 1(1-0,8)
0.5/X = 1/0.2
cross multiply
X = 0.1
Thus the needed change in investment is an increase of $0.1 trillion. In other words, if investment increases by $0.1 trillion, current output will increase from $13.5 trillion to $14 trillion.
Answer: No, these indexes are averages of stock prices and indicate the overall performance of the stock market.
Explanation:
GIVEN the following ;
Dow Jones industrial average = $13,500
S&P 500 Industrial average = $1,500
Prices of stock in the DIJA are not nine times as high as the price of stocks in the S&P 500, the indexes displayed are only used as a measure of performance obtained from large companies listed on the United States stock exchange market. The measurement of the Dow Jones industrial average takes 30 large companies into cognizance while the S&P 500 averages stocks from 500 large companies.
Answer:
$580.36
Explanation:
We use the PMT formula in this question. The attachment is shown below.
Data provided in the question
Present value = $0
Future value = $25,000
Rate of interest = 12% ÷ 12 months = 1%
NPER = 3 × 12 month = 36 months
The formula is shown below:
= PMT(Rate;NPER;PV;-FV;type)
The future value come in negative
So, after solving this, the size of the payment is $580.36