1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ede4ka [16]
3 years ago
13

Indicate whether each of the following descriptions represents saving or investment, as defined by a macroeconomist.

Business
1 answer:
Cloud [144]3 years ago
3 0

Answer: See explanation

Explanation:

a. This occurs when a person's income exceeds his consumption. - This is savings.

b. This occurs when a person or firm purchases new capital. - This is investment.

1. You use your $200 paycheck to buy stock in AT&T. - This is savings since the money isn't used to make a capital purchase for ones business.

2. You borrow $1,000 from a bank to buy a car to use in your pizza delivery business. - This is investment as the car will be used for ones business. The consumption is made to help the business.

3. Your family takes out a mortgage and buys a new house. - This is investment as a new capital is bought.

4. Your roommate earns $100 and deposits it in his account at a bank. - This is savings as no consumption is involved.

You might be interested in
You just won the $85 million Ultimate Lotto jackpot. Your winnings will be paid as $3,400,000 per year for the next 25 years. If
Alex Ar [27]

Answer:

PV= $40,716,437.34

Explanation:

Giving the following information:

Cash flow= $3,400,000 per year

Number of years= 25

Interest rate= 6.7%

To calculate the present value, first, we will calculate the future value:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {3,400,000*[(1.067^25) - 1]} / 0.067

FV= 206,006,183.4

Now, the present value:

PV= FV/(1+i)^n

PV= 206,006,183.4/ (1.067^25)

PV= $40,716,437.34

6 0
3 years ago
Given a 4% required return, what is a $100 cash flow today, a $1,000 cash flow at the end of 1 year, and a $100,000 cash flow at
KengaRu [80]

Answer:

$83254.25

Explanation:

The formulae is nothing but the value factored to today

=(100)+(1000/(1+4%)^1)+(100000/(1+4%)^5)

=$83254.25

7 0
4 years ago
Credit risk measures using the structural model: assume a company has the following characteristics.
Alexeev081 [22]

Answer:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59

Explanation:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59.

Values calculated as shown in my detailed step by step answer at the attachment.

please kindly refer to attachment.

4 0
3 years ago
The short-run effect of an increase in the money supply is to increase the price level only. increase nominal GDP but decrease t
melamori03 [73]

Answer:

The increase both real GDP and the price level.

Explanation:

in the short run, an increase in money supply results in an increase in the GDP of a country and the price level.

Therefore, The increase both real GDP and the price level.

3 0
3 years ago
Characteristics of just-in-time partnerships do not include:
julia-pushkina [17]
<span>Characteristics of just-in-time partnerships do not include:
a.focus on core competencies.
b.removal of in-transit inventory.
c.long-term contracts.
d.large lot sizes to save on setup costs and to gain quantity discounts.
e.produce with zero defects.


The answer is B</span>
5 0
3 years ago
Other questions:
  • Julie has just retired. her company's retirement program has two options as to how retirement benefits can be received. under th
    14·1 answer
  • A company that is introducing a new product in its final form to a geographically limited market to see how well the product sel
    9·1 answer
  • A _____ documents the details of a functional primitive, which represents a specific set of processing steps and business logic.
    5·1 answer
  • Dave's boss told him that he doesn't have to attend the company picnic (which everybody dislikes) if dave meets his sales quota
    14·1 answer
  • What is an information system designed to integrate internal and external members of the supply chain?
    15·1 answer
  • During a telephone conference call, Rafaela asks her assistant to complete a report as soon as possible that day. The assistant,
    9·1 answer
  • Joe is a single, self-employed individual who owns his own business. During 2019, Joe reported $200,000 gross income and $60,000
    7·1 answer
  • Big Kahuna Burger has the following assembly line: How many burgers can they make per hour with one person at each station? If y
    10·1 answer
  • An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000,and it ha
    7·1 answer
  • The price elasticity of demand for a popular sporting event is 1.5. If the price of a ticket to this event increases by 10%, the
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!