Answer:
Explanation:
a. A temporary increase in government purchases would result in a reduction in savings, which would, in turn, lead to the implementation of higher taxes by the government so as to match prices and wages.
This would: make output to remain unchanged, real interest to increase and current price level to increase as well.
b. A reduction in expected inflation would lead to an increment in the demand for real money, as people do not expect inflation to increase for a while. Thus, more demand creates a reduction in the price level. Everything else remains unchanged. This would: make output remain unchanged, real interest remain unchanged and the current price level to decrease.
C. A temporary increase in labor supply would make more people have jobs and therefore more people can save. If more people save the interest rates are liable to decrease therefore money demand will increase. This would: make output to increase, real interest to decline and current price level to decrease.
d. An increase in the interest rate paid on money will lead to a higher demand for money. With an unchanged nominal money supply and higher money demand, the price would decline but everything remains unchanged. This would make: output remain unchanged, real interest remains unchanged and the current price level decrease.
Financial Literacy is the capability and understanding of money and can manage it.
Answer:
Results are below.
Explanation:
Giving the following formula:
Unitary selling price= 500,000/100,000= $5
Operating expenses= $1
Depreciation= $20,000
New selling price= 5*1.1= $5.5
Sales in units= 100,000*0.95= 95,000
COGS rate= 0.62
<u>To calculate the net income, we need to use the following structure:</u>
Sales= 5.5*95,000= 522,500
COGS= 522,500*0.62= (323,950)
Gross profit= 198,550
Operating expenses= (95,000 + 20,000)= (115,000)
Net income= 83,550
Answer:
7.65%
Explanation:
required return = (percent of stock x required return on stock) + (after tax cost of debt x percent of debt) - adjustment factor
Percent of debt = 100 - 73 = 27%
(12.1 x 0.73) + (3.79 x 0.27) - 2.2 = 7.65%
Answer
The answer and procedures of the exercise are attached in the following images.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 3 sheets with the formulas indications.
