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3 years ago

Analyzing macroeconomic events with the IS curve (II):

Business

1 answer:

horsena [70]3 years ago

4 0

Answer and explanation:

This investment tax credit will lead to a surge in the investment demand, because of the benefits that the firms receive from the investment tax credit. More and more firms will undertake investments leading to an increase causing the IS curve to shift to the right.

This implies that the output and GDP will increase in the short run.

(check image file 1 attached)

The increase in the demand for US goods will lead to an increase in the capital inflow for the country, the exports will increase, and the IS curve will shift to the right.

This implies that the output and GDP will increase in the short run

(check the attached image file 2)

US consumers' infatuation with goods and services from New Zealand is going to increase the imports of the country. While it may also reduce the domestic consumption spending. This, however, will affect the country by shifting its IS curve to the left.

This implies that the output and GDP will decrease in the short ran.

(check image file 3)

Though the prices of the houses will fall sharply, increasing the affordability of the houses but the confidence of the people in real estate will be shaken. This would lead to a fall in the housing investment. This fall in investment will shift the IS curve to the left.

This implies that the output and GDP will decrease in the short run.

check image file 4

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Suppose your company needs $43 million to build a new assembly line. Your target debt-equity ratio is .65. The flotation cost fo

elena-14-01-66 [18.8K]

Answer: See explanation

Explanation:

Debt = 0.65

Weight = 39.39%

Cost for debt = 2%

Product = 39.39% × 2%

= 0.3939 × 0.02

= 0.007878

Equity = 1.00

Weight = 60.61%

Cost for equity = 6%

Product = 60.61% × 6%

= 0.6061 × 0.06

= 0.036366

Weighted average floatation cost:

= 0.007878 + 0.036366

= 0.044244

= 4.42%

The true cost of the building will then be:

= Funds needed / (1 - Floatation cost)

= $43,000,000 / (1 - 0.044244)

= $43,000,000 / 0.955756

= $44,990,562

6 0

3 years ago

Shuster’s lease of retail premises from Thurgood requires Shuster to pay certain fees, subject to the landlord’s proof of the co

Assoli18 [71]

Answer:

correct option is c) with prompt notice.

Explanation:

solution

Shuster lease by Thurgood for pay certain fee so the tenant can rescind the with prompt notice because Shuster is overcharge without the any explanation its mean that Thurgood is not performing his any duty rightly

so that Shuster is entitle to the withdraw an contract

correct option is c) with prompt notice.

4 0

3 years ago

HELP ASAP Many employees quit working for Burger Bliss after six months, and the

Alja [10]

Answer:

D. The company tells employees that their work matters.

Explanation:

Every employer desires to attract and retain the best workers. Employees are more likely to stay in an organization for longer if they feel appreciated. Other than monetary compensation, employees feel motivated to work when their efforts and contributions are recognized.

Burger Bliss should let their employees feel important. They should communicate to employees both in words and actions how much the company values their input.

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3 years ago

You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You e

kodGreya [7K]

Answer:

$42.60

Explanation:

Current value = Future dividends and value*Present value of discounting factor(rate%,time period)

Current value = $1.85 / (1+10%) + $45 / (1+10%)

Current value = $1.85/1.1 + 45/1.1

Current value = $ 1.68181 + $40.91

Current value = $42.5918

Current value = $42.60

3 0

3 years ago

The difference between the price at which a dealer is willing to buy and the price at which a dealer is willing to sell, is call

Mademuasel [1]

Answer:

Bid-ask spread.

Explanation:

The difference between the price at which a dealer is willing to buy and the price at which a dealer is willing to sell, is called the bid-ask spread.

Simply stated, the bid-ask spread refers to the amount by which the bid price by a dealer is lower than the ask-price for a security or an asset in the market at a specific period of time.

The bid-ask spread exists because of the need for dealers to cover expenses and make a profit. A bid-ask spread is use in the transaction of the following items; options, future contracts, stocks, and currency pairs.

Generally, a dealer who is willing to sell an asset or securities would receive a bid price while the price at which the dealer is willing to sell his asset to another dealer (buyer) is the ask price.

Hence, the bid-ask spread is simply the difference between the ask price and the bid price. Therefore, a bid-ask spread is a measure of the demand and supply for an asset; where demand represents the bid while supply represents the ask for an asset.

7 0

3 years ago