$

You currently have a one-year-old loan outstanding on your car. you make monthly payments of $ 400$400. you have just made a pa

Verizon [17]

<span>If I have a one year loan outstanding on my car and make monthly $400 payments, my timeline would include twelve equal payments of $400 starting now. The bank's timeline would be the same twelve equal installments of $400 but they would be cash inflows since I am paying the money to the bank. I would consider the $400 a cash outflow.</span>

5 0

2 years ago

Suppose that out of the original 100 increase in government spending, 33 will be recycled back into purchases of domestically pr

serious [3.7K]

Answer:

Multiplier effect in the 4th round = 3.58

Explanation:

A change in aggregate demand can create a much greater impact in the equilibrium national income. This is known as the multiplier effect. This occurs when injections of new demand for goods and services into the circular flow of income creates further rounds of spending. For example, if the government spending was on building new affordable houses then the need for housing materials will create demand for wood, cement and other housing supplies. Thus, these businesses will see a rise in sales. Whilst they benefit through profits, their employees would benefit from wages and salaries. As their income rises, they will spend it in the economy, and so will the businesses from their profits. This additional rounds of spending is the multiplier effect.

If a 100 increase creates 33 for the second round, it is 33% (33/100 x 100) i.e. 100 x 33% = 33

This is proven since 33 x 33% = 10.89 in the third round.

Hence, the multiplier effect in the forth round = 10.89 x 33% = 3.58

7 0

2 years ago

A month ago, you bought a one-year bond with a value of $100 that pays a fixed interest rate of 5 percent per year. The interest

My name is Ann [436]

Answer:

less desirable to other investors

Explanation:

<u>Given</u>: Current fixed coupon rate 5%

Market rate of interest 5%

New Market Rate of Interest 6%

Value of a bond is inversely related to economy interest rate or the yield to maturity (YTM). Value of a bond is expressed by the following equation:

$B_{0}\ = \frac{C}{(1\ +\ YTM)^{1} } \ +\ \frac{C}{(1\ +\ YTM)^{2} } \ +....+\ \frac{C}{(1\ +\ YTM)^{n} }\ +\ \frac{RV}{(1\ +\ YTM)^{n} }$

wherein, C = Coupon rate of interest

YTM = Market Rate of Interest or interest rate in the economy or investor's expectation

n= Years to maturity

RV = Redemption value

In the given case, C = YTM i.e par value bond. When ytm rises to 6%, the value of the bond shall fall making such a bond less attractive since it represents lower coupon payments than investor expectations.

Thus, now the bond would be less desirable to other investors.

3 0

2 years ago

Rebel Technology maintains its records using cash-basis accounting. During the year, the company received cash from customers, $

Elden [556K]

Answer:

The cash-basis net income and accrual-basis net income for the year is $19,500 and $22,800 respectively.

Explanation:

The computation is shown below:

1. Net income under cash basis:

= Received cash from customers - paid cash for salaries

= $43,000 - $23,500

= $19,500

2. Net income under accrual basis:

= Cash received - salary paid

where,

Cash received = Cash owed at the end of the year + cash received - cash owed at the beginning of the year

= $6,600 + $43,000 - $1,000

= $48,600

And, the salary paid = salary owed at the end of the year + salary paid - salary owed at the beginning of the year

= $5,600 + $23,500 - $3,300

= $25,800

Now put these values to the above formula

So, the value would equal to

= $48,600 - $25,800

= $22,800

3 0

3 years ago

Management career skills include managing _____.

Svetllana [295]

Answer:

the correct answer is finances

3 0

2 years ago