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choli [55]
3 years ago
11

Economist A believes that the elasticity of investment is 1.47 while economist B believes that the elasticity of investment is 0

.76. Which economist, A or B, is more likely to believe that a change in the interest rate will change the current economic environment?
Business
1 answer:
Anna71 [15]3 years ago
8 0

Answer:

Economist A

Explanation:

Elasticity is a measure of investment sensitivity. If the investment is elastic, a slight increase in price (interest rate) will decrease the amount of investment. Conversely, if the investment is inelastic, a change in interest rates will not considerably affect the investment rate. The calculation of elasticity consists of the change in the investment rate divided by the change in the interest rate. If the calculation of elasticity is less than 1, it is considered ineastic, while investments with elasticity above 1 are considered elastic. Thus, economist A believes that the investment rate is elastic to the interest rate, while economist B believes the opposite. So for economist A the rise in interest rates will affect the investment rate of the economy (and hence the macroeconomic environment) because in his view investment is elastic. Economist B does not believe that interest rate fluctuations will affect demand for investments.

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Sumitomo Bank's risk manager has estimated that its DEAR of two of its major assets in its trading portfolio, foreign exchange a
Andre45 [30]

Answer:

-$380,789

Explanation:

Dear Portfolio = [(1,50,000)2 + (2,50,000)2 + 2(0.8)(1,50,000) ( 2,50,000)]0.5

= [$22500000000 + $62500000000 + $60000000000]0.5

= ($145000000000)0.5

= $380,789

4 0
3 years ago
An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Gigi Hadid and offered readers a $2
marysya [2.9K]

Answer:

Home Journal magazine

Explanation:

In communication, medium is what the message is conveyed on. It is the system or channel through which a message is transmitted from the sender to the recipient. The modern medium used in advertising is in the electronic format and includes the internet, telephone, and other electronic devices.

Tradition medium channels are television, radio, and print media such as newspapers and magazines.  The ad for Maybelline age-minimizing appears in a magazine. The  Ladies' Home Journal magazine is the medium for the ad.

6 0
4 years ago
Read 2 more answers
Marv's Furniture and Fixtures produces seats for movie theaters. Listed below are selected cost items for the seat production. C
MatroZZZ [7]

Answer:

Fixed cost is the one which remains fixed and doesn't changes within a range of level of activity changes which includes Factory property taxes (doesn't changes with furniture manufacturing), accounting staff salaries (doesn't changes with furniture manufacturing), sales office rent (doesn't changes with furniture manufacturing), Sales manager salary and Depreciation on factory equipment.

On the other hand, the variable cost changes with the change in the level of activity and this includes fabric for seats (greater usage for greater amount of seats), assembly labor and sales commissions paid.

Period cost is the cost that is associated with the passage of time and increases with the passage of time and is not dependent on level of activity.

This includes Factory property taxes, accounting staff salaries, sales office rent, Sales manager salary and Depreciation on factory equipment.

Product cost is the cost that is associated with costs that are directly linked with manufacturing of the product. This includes all the variable overheads, specific fixed cost and variable costs. The examples include Fabric for seats and Assembly labor.

5 0
3 years ago
An entrepreneur borrows $500,000 today. The interest rate is 11.5%. If the entrepreneur makes annual payments of $70,000 per yea
love history [14]

Answer:

After 18.44 year loan will be paid

Explanation:

We have given an entrepreneur borrows $500,000 today.

So total amount is $500000

Annual payment is of $70000

Rate of interest r = 11.5 %

We have to find the time period

We know that total amount is given by

A=P(1+\frac{r}{100})^n, here A is total amount , P is yearly paid amount, r is rate of interest and n is time period

So 500000=70000\times (1+\frac{11.25}{100})^n

7.142=1.1125^n

Taking log both side

log7.142=nlog1.1125

n\times 0.0463=0.8538

n = 18.44 year

So after 18.44 year loan will be paid

6 0
3 years ago
The marginal impact of overall medical spending on health status is ________in the United States. The marginal impact of prevent
Mumz [18]

Answer:

C - larger; smaller

Explanation:

Marginal effects usually determine the change in a dependent variable (overall medical spending) based on a change in another variable that affects the dependent one (Spending on preventative care), all things remaining the same. If spending on preventative care is high, the overall medical bill should be low, assuming treatment costs, labor costs of health workers and all other factors are constant. If preventative care spending is low, the overall medical spending will be high.

The marginal effects of overall medical spending on health status is larger in the US. The marginal effects of preventative care spending on health is likely smaller than for overall spending.

5 0
3 years ago
Read 2 more answers
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