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DIA [1.3K]
3 years ago
5

A leading indicator: Group of answer choices does not change with business cycles. remains unaffected by changes in real GDP. ge

nerally changes after real GDP changes. changes in either direction before a recession starts. usually declines before a recession starts.
Business
1 answer:
tankabanditka [31]3 years ago
5 0

Answer:

The correct answer is letter "E": usually declines before a recession starts.

Explanation:

The Leading Indicator is a measurable economic factor that tends to change right before the economy begins to change. Though they are not always right, leading indicators are often used to forecast upward or downward shifts in an economy or a sector.

Some of the common key indicators are the stock market, retail sales, and the real estate market. If we relate the inflation to leading indicators, <em>inflation will theoretically hit right after the leading indicator started to show a decline in the overall growth of an economy.</em>

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The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equit
zimovet [89]

Answer:

12.75 %

Explanation:

Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.

Cost of Capital = E/V × Ke + D/V × Kd

Where,

E/V = Market Weight of Equity

      = 0.55

Ke = Cost of Equity

    = 15%

D/E = Market Weight of Debt

      = 0.45

Kd = Cost of Debt

     = 10%

Therefore,

Cost of Capital = 0.55 × 15% +  0.45 × 10%

                         = 12.75 %

4 0
2 years ago
If gdp is $20 trillon, how many years will it take for gdp to increase to $40 trillion if annual growth is 10 percent?
ElenaW [278]

It will take 7 years.

Given GDP is $20 trillion and increased GDP is $40 trillion.

Gross domestic product (GDP) is the standard measure of  value added generated by the country's production of goods and services over a certain time period. GDP is the total monetary or market worth of all completed products and services produced within a country's boundaries in a certain time period.

As such, it also accounts for the money generated by such output, as well as the overall amount spent on final products and services (less imports).

Time take to reach $40 trillion is to be found.

Formula to find the time taken to reach $40 trillion  is given below:

F = P *(1+i) ^t

Here,

F = 40,

P = 20,

I = 10%

Now put the values in the formula given above.

F = 0.1040 = 20 × (1+0.10) ^t(1.10)^t

  = 40 / 20

  = 2

Taking log both sides t = log 2 / log 1.10  

                                    = 7.27 yrs or 7 yrs

Therefore, it will take 7 years.

To know more about GDP click here:

brainly.com/question/1383956

#SPJ4

8 0
1 year ago
Interest rates rise faster in Scotland (GBP) than they do in the United States (USD). Which nation’s currency appreciates? Which
patriot [66]

There is very simple logic between demand and supply. When demand is high, price rises and currency appreciates in its value. On the other hand, price should decline if import rate is mare compared with export rates. As prices of U.S goods increases which ultimately goes to international market where producers have to pay domestic currencies. Americans will demands comparatively less expensive goods. So it will result in supplying more dollars to foreign exchange market.

Finally, increasing demand of pounds. Finally, U.S dollars appreciates and pound depreciates. Trade value is amount by which total import value deviates from export value. Due to changes in interest rates results in trade imbalance in U.S. There is not greater effect on Scotland as it is key player in transporting of energy products to rest of U.K.

6 0
3 years ago
7. What is supply and demand? Give me an example of a supply and demand currently?
Marysya12 [62]

Answer:

Supplier sells the goods at various prices, depending on how much consumers want it, and at the rate that the goods are being sold.

For example, now, during the pandemic,  face masks are now in very very high demand. Due to this, suppliers has now increased the price of the face masks, as to take advantage of the current situation

4 0
2 years ago
How did the relationship between Parliament and the Restoration monarchs, Charles II and James II, change following the English
Tatiana [17]

Answer:

The monarchs continued to challenge Parliament's authority.

Explanation:

Following the English Civil War, tensions between the monarchs and Parliament began to grow. Queen Elizabeth did not leave any heir, therefore, James I began the Stuart Dynasty. James I believed in Divine Rule, which was in oppose of Queen Elizabeth's rule who worked with Parliament.

After the English Civil War, the monarchs continues to challenge Parliament's authority. During Restoration monarchs, Charles II and James II, Parliament and monarchs were in conflict with each other.

Therefore, option C is correct.

4 0
2 years ago
Read 2 more answers
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