Answer:
The correct answer is option a.
Explanation:
The aggregate demand in an economy comprises of consumer spending, government spending, investment expenditure, and net exports.
An increase in any of these components will cause the aggregate demand to increase or decrease.
So when the government spending increases the aggregate demand will increase. This increase in the aggregate demand will cause the aggregate demand curve to shift to the right.
This rightward shift in the aggregate demand curve will cause the price level and equilibrium quantity to increase.
<span>John would want to be the member as a limited partner. This would allow him to be an owner of the company and provide leadership (and also receive earnings) without being liable for the firm's debts. A limited liability corporation (LLC) allows for the owners to not be responsible for the debts of the firm.</span>
Answer:
When a financial friction is added to the short-run model it: shifts the MP curve up.
Explanation:
The short-run model, IS/MP model, describes the Investment-Savings/Monetary Policy model used by the US Federal Reserve to decrease the real interest rate through the Federal Funds rate, i.
The Federal Funds rate is the interest rate that commercial banks with excess reserves lend to others in deficit. The resulting shift occasions a decrease in the real interest rate which triggers an increase in the inflation rate, and vice versa. With such short-run changes in the interest rate, inflation and output is influenced in desirable directions by the Federal Reserve as a foundation to achieve long-term shifts in the AD-AS model.
The AD-AS model is a long-term model that describes Aggregate Demand and Aggregate Supply which impact long-term inflation, interest rates, and output.
Answer:
17.76%
Explanation:
The computation of the time-weighted return on your investment is given below
But before that we have to do the following calculations
Year 1 = ($46.50 - $42.50) + 2 ÷ ($42.50) × 100 = 14.12%
Year 2 = ($54.50 - $46.50) + 2 ÷ ($46.50) × 100 = 21.51%
Now the time weighted return is
(1 + t)^2 = (1 + 14.12%) × (1 + 21.51%)
= 1.1412 × 1.2151
= √1.3867 - 1
= 17.76%
Answer: B. The investor has a short-term capital loss of $20,000.
Explanation:
A short-term loss occurs when a deficit is realized when there's a sale of an asset which has been held by the person for a period of one year or less.
In this case, since the security was worthless, it's a loss and was also help for six months which is less than one year, then it's a short term capital loss.
Therefore, the correct option is B
