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Sati [7]
2 years ago
11

At the end of 2018, the federal government debt of the U.S. stood at 104% of GDP. Imagine that, unlike in previous years, from 2

019 on the federal government runs a balanced primary budget, i.e. total primary federal government expenses are equal to total federal government revenues. Also suppose that in all years starting from 2019, the nominal GDP will grow at 3% and the interest rate at which the U.S. government can borrow will be 2%. What will be the U.S. federal debt as a fraction of GDP in year 2050
Business
1 answer:
Naddik [55]2 years ago
8 0

Answer:

The U.S. federal debt as a fraction of GDP in year 2050 will be 77%

Explanation:

According to the given data we have the following:

Debt in the end of 2018 = 104% of GDP

Nominal GDP growth = 3%

Interest on debt = 2%

In order to calculate What will be the U.S. federal debt as a fraction of GDP in year 2050 first we have to calculate the debt in 2050 using the following formula:

Debt in 2050 = Current Debt*(1+r%)n

Debt in 2050 = 104*1.0232 = 196

Next, we would have to calculate the GDP in 2050 using the following formula:

GDP in 2050 = Current GDP*(1+r%)n

GDP in 2050 = 100*1.0332 = 257.5

Therefore, Debt as percentage of GDP in 2050 = 196/ 257 = 77%

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Objectives are like goals that you want to accomplish, strategies are the methods to get there
3 0
2 years ago
In 2020, Mowchan Inc. acquired Sanchez Co. and recorded goodwill of $290 million as a result. The net assets (including goodwill
Stels [109]

Answer:

$170 million

Explanation:

First we must calculate the implied fair value of goodwill:

fair value of goodwill = Sanchez's fair value - Sanchez's asset valuation = $1,020 million - $900 million = $120 million

impairment loss = recorded goodwill - fair value of goodwill = $290 million - $120 million = $170 million

An impairment loss is a loss generated by the decline of an asset's fair value.

3 0
2 years ago
You are aware that your neighbor trades stocks based on confidential information he overhears at his workplace. This information
Margaret [11]

Answer:

Semi-strong Form Efficient.

Explanation:

There are three levels of market efficiency as weak, semi-strong and strong.

In a semi-strong form efficient market, the stock prices change independently of the previous return points and the current information so it is not possible to predict the future stock prices.

The example given in the question, which states that the neighbor has non-public information, can be classified as a semi-strong form efficient market.

I hope this answer helps.

6 0
3 years ago
3. Vegetables wilt or soften and their color intensifies as they
maks197457 [2]

[] Answer []

\boxed{Boil}

[] Explanation []

<u><em /></u>

<u><em>Vegetables wilt or soften and their color intensifies as they boil</em></u>.

      When boiling vegetables, the food will be sitting in a pot of water with the heat on low, medium, or hight. Once the water gets warmer, the water will cook the vegetables, causing them to get tender and softer. This will cause the vegetables color to get darker, and go limp.

       When boiling vegetables, the flavor will not intensify, just the color, and it's shape. The water will drain any tase from the vegetable, but it will cause the food to go limp and get softer. Boiling is a famous way to cook your favorite vegetables, although the taste is not highly favored among lots of people.

\boxed{[] \ Eclipsed \ []}

8 0
2 years ago
In order to produce 100 pairs of oven gloves, Marcia incurs an average total cost of $2.50 per pair. Marcia’s marginal cost is c
anygoal [31]

Answer:

option (d) $200.00

Explanation:

Average total cost for 100 pairs = $2.50

Marginal cost for every pair = $10.00

Now,

Total cost = Fixed cost + Variable cost

or

Fixed cost = Total cost - variable cost

or

Fixed cost = (Average total cost × 100) - (Marginal cost × 100)

= ($2.5 × 100) - ($1 × 100)  

= $250 - $100  

= $150

thus,

Total cost to produce 50 pairs of oven gloves

= fixed cost + variable cost

= $150 + (50 × $1)

= $150 + $50

= $200

Hence,

option (d) $200.00

6 0
2 years ago
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