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WINSTONCH [101]
3 years ago
7

Suppose the governments of two different economies, economy A and economy B, implement a permanent tax cut of the same size. Inv

estment spending in economy A is more sensitive to changes in the interest rate than investment spending in economy B. The economies are identical in all other respects. The tax cut will have a smaller impact on aggregate demand in the economy with the
Business
1 answer:
timama [110]3 years ago
8 0

Available Options Are:

a) higher sensitivity to changes in the interest rate, or

b) lower sensitivity to changes in the interest rate

Answer:

Option A. Higher sensitivity to changes in the interest rate

Explanation:

The reason is that the tax cut will encourage foreign investment and this increase in Foreign Investment will increase the GDP but by small amount. However, the higher interest rate in an economy always raises additional money in an economy which companies invest to purchase the new GDP. Thus the GDP growth is highly sensitive to changes in interest rate.

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Consider a city of 200 people (100 rich and 100 poor) and two neighborhoods (100 people in each). Both groups generally prefer t
Mekhanik [1.2K]

Answer:

Explanation:

Step 1. Given information.

  • City of 200 people
  • 100 rich, 100 poor.

Step 2. Formulas needed to solve the exercise.

  • P(poor) = 0.9x^2
  • P(rich)= 35x-0.1x^2

Step 3. Calculation and step 4. Solution.

P(poor) = p (rich)

0.9x2 = 35x - 0.1x2

1x2 = 35x

x = 35

x is the percentage of rich above 50%, thus there are 35% rich people above 50%.

P (poor) = 1102.5

P (rich) = 1102.5

The equilibrium premium is $1,102.5

3 0
3 years ago
Suppose a perfectly competitive firm produces 40 units of output per-period (e.g., daily) and sells all units for the market pri
Komok [63]
The correct answer for the question that is being presented above is this one: "F. i and iii" Then the firm is maximizing total profit by producing and selling 40 units of output and <span>earns a per-period total profit of $240 </span>

Here are the choices:
A. i
B. ii
C. iii
D. iv
E. i and ii
F. i and iii
5 0
2 years ago
Which of the follow will happen if you miss a monthly credit card payment?
Novosadov [1.4K]
You get charged a certain late fee that adds up everyday that the payment is late after the due date. Your interest rates might also go up <span>⬆️</span>
5 0
3 years ago
Read 2 more answers
To join an upscale country club, an individual must first purchase a membership bond for $30,000. In addition, monthly membershi
Ronch [10]

Answer:

lump sum= 19,925

Explanation:

Giving the following information:

To join an upscale country club, an individual must first purchase a membership bond for $30,000. In addition, monthly membership dues are $250. Suppose an individual wants to put aside a lump sum of money now to pay for her basic country club membership expenses (including the $30,000 bond) over the next 30 years. She can earn an APR of 6%, compounded monthly, on her investments.

First, we need to calculate the total amount of money needed:

Final value= 30,000 + 250*12*30= 120,000

Now, we need to use the following formula:

PV= FV/(1+i)^n= 120,000/1.005^360= 19,925

7 0
2 years ago
Think about the organization you currently are employed (were employed, hope to be employed or an organization you are familiar
Natasha2012 [34]

In an organization, the amount of work that must be done in the program definition phase is relative to the project that will be developed in the organization. What must be delivered at this stage are:

  • the program letter
  • Registration of Interested
  • Program management plan
  • Program kick-off
  • benefit registration
  • RAID log (risks, actions, issues and decisions)
  • Program post-definition health check

<h3>Program definition</h3>

Therefore, this is the phase of the project where there will be communication about the program and authorization for the manager to proceed, containing in its definition the objectives and vision, benefits, governance, budget and responsibilities of the project.

Find out more information about organizational project here:

brainly.com/question/25846476

8 0
2 years ago
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