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3 years ago

For an economy starting at potential output, a decrease in planned investment in the short run results in a(n):

Business

1 answer:

Kruka [31]3 years ago

6 0

Question:

For an economy starting at potential output, a decrease in autonomous expenditure in the short-run results in a(n):

A. increase in potential output

B. recessionary output gap

C. decrease in potential output

D. expansionary output gap

Answer:

The correct answer is B

Explanation:

A decrease in autonomous expenditure shifts the Planned Aggregate Expenditure curve downward thus creating a lower equilibrium output.

PAE = C + Ip + G + NX

where

PAE = Planned Aggregate Expenditure

C = consumption

Ip = Investment Spending

G = Government Spending

NX = Net Export

If an economy has its output equal to its potential, this will create a reduction in short-run equilibrium output leading to a recessionary output gap.

Cheers!

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Joy has been saving her earnings to make a down payment on a new car. which loan terms will result in highest total cost for the

wariber [46]

5.5 percent loan for 60 months

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3 years ago

What is the most accepted time frame associated with the MOV SEP code?

shusha [124]

The inference is that the most accepted time frame associated with the MOV SEP code is 60 days or 2 months.

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An inference is the conclusion that can be deduced based on an information.

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2 years ago

Bonita Corporation had net sales of $2,409,200 and interest revenue of $38,100 during 2020. Expenses for 2020 were cost of goods

____ [38]

Answer:

net income: $ 451,010

EPS: $ 6.32 per share

Explanation:

net sales 2,409,200

cost of good sold (1,464,600)

gross profit: 944,600

operating expenses:

selling expenses (284,000)

operating income 660,600

non operating:

interest revenue 38,100

interest expense (54,400)

non operating expense (16,300)

earning before taxes: 644,300

tax expense: 30% 193,260

net income 451,010

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Earning per share: 451,010/71,390 = 6,31755

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3 years ago

Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information

kondaur [170]

Answer:

The expected return on Bo's complete portfolio will be "10.32%".

Explanation:

The given question is incomplete. Please find attachment of the complete question.

According to the question, the given values are:

Port's expected return,

$R_p=12 \ percent$

T-bill's expected return,

$R_t=3.6 \ percent$

Port's weight,

$W_p=80 \ percent \ i.e.,\ 0.80$

T-bill's weight,

$W_t=20 \ percent \ i.e., \ 0.20$

Now,

The Bo's complete portfolio's expected return will be:

⇒ $W_p\times R_p+W_t\times R_t$

On substituting the given values, we get

⇒ $0.80\times 12 \ percent+0.20\times 3.6 \ percent$

⇒ $10.32 \ percent$

Note: percent = %

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3 years ago

Dean Brothers Inc. recently reported net income of $1,500,000. The company has 300,000 shares of common stock. The stock current

vladimir1956 [14]

Answer:

$75

Explanation:

The formula to compute the price -earning ratio is shown below:

Price earning ratio = Market price ÷ Earning per share

where,

Market price is $60

And the earning per share is

= ($1,500,000 ÷ 300,000 shares)

So, price earning ratio is 12

Now the company stock price is

$12 = Stock price ÷ (2,500,000 ÷ 400,000)

So, Stock price is $75

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3 years ago