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Andre45 [30]
3 years ago
7

Suppose economists observe that an increase in government spending of $15 billion raises the total demand for goods and services

by $60 billion.
If these economists ignore the possibility of crowding out, they would estimate the marginal propensity to consume (MPC) to be

1/4

3/4

1/4

4

Now suppose the economists allow for crowding out.Their new estimate of the MPC would be larger or smaller than their initial one
Business
1 answer:
kozerog [31]3 years ago
8 0

Answer:

1/4

Explanation:

MPC = dC/dY

dC is the change in consumption

dY is the change in demand for goods and services.

MPC = 15/60 = 1/4

If allowance is made for crowding out, the new estimate will be larger.

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You own a portfolio which is valued at $12.0 million and which has a beta of 1.35.
REY [17]

Answer: 16 S&P 500 futures contracts

Explanation:

The number of contracts can be calculated by:

= (1 * beta) × Stock value/(Contract size * Index level)

= 1.35 × 12,000,000 / ( 250 * 3,983)

= 1.35 × 12,000,000 / ‭995,750‬

= 16 S&P 500 futures contracts

8 0
3 years ago
Ogilvie Corp. issued 30,000 shares of no-par stock for $40 per share. Ogilvie was authorized to issue 53,000 shares.
Rudik [331]

Answer:

It will increase the assets of the company by 1200000,it will increase the equity of the company by 1200000.

Explanation: A No-par value stock or shares is a share that doesn't have any stated or designated value stated in its certificate.

Assets are value yielding or money making investments or facilities of a business Organisation.

Equity is a term used in accounting and investments to refer to the total value of a company's shares or stock.

THE EFFECTS ON OGILVIE CORP. WILL BE THE WORTH OF THE NO PAR STOCK *NUMBER OF UNITS ISSUED WHICH WILL BE EQUAL TO $40*30,000UNITS OF SHARES

=$1,200000 WORTH OF MONEY TO BE DOCUMENTED IN BOTH THE ASSET AND THE EQUITY OF THE COMPANY.

3 0
3 years ago
Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic inst
madam [21]

Answer:

The net benefit is -$26,000

Explanation:

Given the above information,

The total cost of manufacturing 12,000 circuit boards

= 12,000 × $34

= $408,000

Total purchase price

= 12,000 × $34

= $408,000

Fixed overhead cost applied

= 12,000 × $6

= $72,000

The rental income = $46,000

Outsourcing cost

= Total purchase price + Fixed overhead cost applied - Rental income

= $408,000 + $72,000 - $46,000

= $434,000

Therefore, Net benefit

= Total cost of manufacturing - Outsourcing cost

=$408,000 - $434,000

= -$26,000

8 0
3 years ago
An investor pays $900 for a bond with a principal value of $1,000 and a coupon rate of 8%. How much in annual interest will the
solmaris [256]

Answer:

Annual Interest = $80

Interest rate = 8.89%

Explanation:

The investor pays discounted price for this bond.

We know, Annual Interest = Coupon payment/Market value

Given,

Coupon payment = Principal value*Coupon rate

Coupon payment = $1,000*8% = $80

Market value = Price pays for the bond = $900

Therefore, the annual interest rate = $80/$900

Annual Interest rate = 8.89%

Note that, coupon payment is the annual interest rate.

5 0
3 years ago
My grandma just died and when my dad told me this he said lol what does it mean?
Burka [1]

Answer:

lots of love?&3&3&3&3&3&3&

5 0
3 years ago
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