1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sammy [17]
2 years ago
6

Practice: True or False 1. Investment spending is spending on financial assets like stocks and bonds F 2. Transfer payments are

not counted in the calculation of GDP 3. If the nominal GDP increases then the economy is definitely experiencing inflation 4. An economy is not at full employment unless there is no unemployment 5. Countries that have generous unemployment benefits tend to have higher natural rates of unemployment 6. Lumberjacks are structurally unemployment when they are replaced by machines
Business
2 answers:
Colt1911 [192]2 years ago
8 0

Answer:

1. False

2. True

3. False

4. False

5. True

6. True

Explanation:

1. False: Investment spending is spending on financial assets like stocks and bonds.

2. True: Transfer payments are not counted in the calculation of GDP.

3. False: If the nominal GDP increases then the economy is definitely experiencing inflation.

4. False: An economy is not at full employment unless there is no unemployment.

5. True: Countries that have generous unemployment benefits tend to have higher natural rates of unemployment. 6. True: Lumberjacks are structurally unemployment when they are replaced by machines.

Aleksandr [31]2 years ago
3 0

Answer:

1. False

2. True

3. False

4. False.

5. True

6. True

Explanation:

Investment spending is the purchases of land, machinery, infrastructure or production inputs. Investment spending is different from investment, which is the purchase of financial instruments like bonds, stocks, and derivatives.

Transfer payments are not calculated in the GDP. An example of a transfer payment is a welfare check that is received by a household. Transfer payments are not included because nothing gets produced as money is simply just transferred from one group to another.

Nominal GDP increases due to a positive economic growth. The nominal GDP could increase because production has increased and due to increase in in the price.

Full employment means that the unemployment has fallen to a lowest possible level which won't cause inflation. Full employment does not mean there won't be unemployment at all in the economy.

Countries that have generous unemployment benefits tend to have higher natural rates of unemployment unemployment because the workers are always coming and going, looking for better jobs.

Lumberjacks are structurally unemployment when they are replaced by machines because it is an unemployment that results.from industrial reorganization, due to technological change.

You might be interested in
"a promise to your mother to refrain from going to bed later than 11:00 p.m. on a school night is what type of consideration?"
zimovet [89]
Statement: <span>"a promise to your mother to refrain from going to bed later than 11:00 p.m. on a school night

</span>The type of consideration: <span>A benefit to the promisor

Promisor is the person who makes a promise. A person promises to refrain to not got to the bed later than 11:00 pm at school night is for the long term benefit of the person who is making the and not who is asking for the promise.</span>
6 0
3 years ago
Consider a portfolio of stocks X, Y, Z whose returns in various economic conditions are set forth below.
jeka57 [31]

Answer:

The expected return is 10.95%

Explanation:

CALCULATE THE EXPECTED RETURN OF X

State _____Probability __X_____Expected return

Boom ____ 0.25 ______22%  ___5.50%

Normal ___ 0.60 ______15%  ___ 9.00%

Recession _0.15 _______5% ___ <u>0.75%  </u>

Total ______________________<u>15.25%</u>

CALCULATE THE EXPECTED RETURN OF Y

State _____Probability __Y_____Expected return

Boom ____ 0.25 ______10%  ___ 2.50%

Normal ___ 0.60 ______9%  ____5.40%

Recession _0.15 _______8% ___ <u>1.20%  </u>

Total ______________________<u>9.10%</u>

Now calculate the weighted average return based on investment in each portfolio

Expected return = ( Expected return of Assets X x Weight of Asset X ) + ( Expected return of Assets Y x Weight of Asset Y )  

Expected return = ( 15.25% x $3000/$10000 ) + ( 9.10% x $7000/$10000 )  

Expected return = 4.575% + 6.370%

Expected return = 10.945%

Expected return = 10.95%

5 0
3 years ago
Does fat and soap have the same density?and why?
umka21 [38]

Answer:

Soap is soluble in water, but fat is not. Fat has a melting point above 47C and soap has a melting point above 100C. Fat has a density of 0.92 g/cm3 and soap has a density of 0.84 g/cm3. These are all properties that make fat and soap different substances.

Explanation:

6 0
3 years ago
Sonny's BBQ Company recently issued $85 par value preferred stock that pays an annual dividend of $9. Analysts estimate that the
Bond [772]

Answer:

Intrinsic value=$73.77

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.</em>

<em> According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.</em>

Price = D/Kp

D- Dividend payable

Kp- cost of preferred stock

So will need to work out the cost of equity using CAPM

<em>The capital asset pricing model (CAPM)</em>: relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  

This model is considered superior to DVM. Hence, we will use the CAPM

Using the CAPM , the expected return on a asset is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) =? , Rf- 2.4%, Rm- 12.1% β- 1.01

E(r) = 2.4% + 1.23×(12.1- 2.4)%  = 12.20 %

Cost of preferred stock= 12.20 %

Using the dividend valuation model

Intrinsic value = 9/0.1220=73.77

Intrinsic value=$73.77

5 0
3 years ago
On June 30, 2020, Sarasota Company issued $3,340,000 face value of 14%, 20-year bonds at $3,842,540, a yield of 12%. Sarasota us
ki77a [65]

Answer:

1) June 30, 2020, bonds are issued at a premium

Dr Cash 3,842,540

    Cr Bonds payable 3,340,000

    Cr Premium on bonds payable 502,540

2) December 31, 2020, first coupon payment

Dr Interest expense 230,552.40

Dr Premium on bonds payable 3,247.60

    Cr Cash 233,800

amortization of bond premium = ($3,842,540 x 6%) - $233,800 = -$3,247.60

3) June 30, 2021, second coupon payment

Dr Interest expense 230,357.54

Dr Premium on bonds payable 3,442.46

    Cr Cash 233,800

amortization of bond premium = ($3,839,292.40 x 6%) - $233,800 = -$3,442.46

4) December 31, 2021, third coupon payment

Dr Interest expense 230,151

Dr Premium on bonds payable 3,649

    Cr Cash 233,800

amortization of bond premium = ($3,835,849.94 x 6%) - $233,800 = -$3,649

5 0
2 years ago
Other questions:
  • Jones of San Diego sold Long of Baton Rouge a video system with a $6,000 list price. Sale terms were 2/10, n/30 FOB San Diego. J
    9·1 answer
  • If demand for farmer​ john's maple syrup is​ inelastic, then when farmer john raises the price of maple​ syrup, his total revenu
    8·1 answer
  • Select the correct statement regarding managerial and financial accounting. Multiple Choice Timeliness is more important in fina
    13·2 answers
  • For each of the following statements, indicate whether it is true, false, or uncertain and explain why. Average total cost is al
    13·1 answer
  • To adjust debt and institute a repayment plan, Bianca-who is not a corporation, a partnership, ora family farmer or fisherman-ma
    6·1 answer
  • Being able to identify an industry to use for benchmarking your​firm's results with similar companies is frequently not easy. Ch
    8·1 answer
  • In the context of SWOT analysis, marketers can identify strengths and weaknesses by focusing on:
    6·1 answer
  • When customers join the Daily Needs Reward Zone, they receive one point on every purchase they make at Daily Needs stores and Da
    11·1 answer
  • In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following ord
    12·1 answer
  • If you don't own a home or a car, your liability is
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!