Answer:
$5,262.63
Explanation:
The computation of the program increase in total spending in economy is shown below:
But before that we need to find out the government spending multiplier is '
= 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.85)
= 6.67
Now
The increase in total spending is
= increase in spending × spending multiplier
= $789 billion × 6.67
= $5,262.63
Hence it would be increased by $5,262.63
Answer and explanation:
The 9/11 attack is possibly one of the most horrible events in American History. Terrorists from armed-group Al Qaeda infiltrated as passengers of American Airlines, took control of the plane threatening people with fire guns, and eventually crashed the plane into the World Trade Center in Manhattan, New York City (2001).
From the economic point of view, <em>it would reasonable if airlines increase investment in technology and resources that allow them to improve their screening process to avoid such moments to be repeated in the future. </em>Eventually, the costs of not conducting a proper passenger screening could be higher, not only economically speaking.
Answer: A;B
Explanation:
<em>Consider the single factor APT. Portfolio A has a beta of 1.7 and an expected return of 19%. Portfolio B has a beta of .6 and an expected return of 15%. The risk-free rate of return is 11%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio </em><em><u>A</u></em><em> and a long position in portfolio </em><em><u>B.</u></em>
You should take a short position in the Portfolio with a lower risk premium and a long position on the Portfolio with a higher risk premium.
Using the single factor APT, the formula for risk premium can be derived from;
E(r) = Rf + beta (Risk premium on factor)
<u>Portfolio A</u>
19% = 11% + 1.7 * Risk premium
1.7 * risk premium = 8%
Risk Premium = 4.7%
<u>Portfolio B</u>
15% = 11% + 0.6 * RP
0.6 * RP = 4%
RP = 6.67%
Portfolio A Risk premium is lower so it should be <u>shorted.</u>
Portfolio B Risk premium is higher so it should taken a <u>long position</u> in.
Answer:
Markets are competitive.
Explanation:
In the competitive market, the number of sellers competed with each other in terms of prices, quality, maximize the market share.
In the given situation, various sellers are competed with each other for meeting out the consumer demands also at the same time it offers the goods at lowest cost and highest quality so that it capture the whole market
Therefore the second option is correct
Answer:
The correct answer is (a) $41,800.
Explanation:
Solution:
Given that:
The first step taken is to calculate for depreciation on sold equipment:
Amount($)
Accumulated depreciation in Year -1 (a) = 540000
Depreciation for the year 2 (b) = 48000
Accumulated depreciation to be in year 2 c=(a+b)=588000
Reported accumulated depreciation in year 2(d)=460000
Thus,
Depreciation on sold Equipment e= (c-d) = 128000
Now,
The second step is to calculate sale proceeds:
Cost (a)= 164000
Depreciation(b) =128000
The written dawn value c=(a-b) = 36000
Gain on sale of equipment (d)=5800
The Sale Price (c+d)=41800
Therefore, the sale of the equipment is $41,800