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
guajiro [1.7K]
3 years ago
5

In the Keynesian-cross analysis, if the consumption function is given by C = 20 + 0.7 (Y – T), and planned investment is 100, G

is 100, and T is 100, then equilibrium Y is:
Business
1 answer:
Lyrx [107]3 years ago
7 0

Answer: 500

Explanation:

At equilibrium, it should be noted that,

Y = C + I + G

where ,

C = Consumption = 20 + 0.7(Y - T)

I = Investment = 100

G = Government expenditure = 100

Y = C + I + G

Y = 20 + 0.7(Y - 100) + 100 + 100

Y = 20 + 0.7Y - 70 + 200

Y - 0.7Y = 150

0.3Y = 150

Y = 150/0.3

Y = 500

You might be interested in
Why is it difficult for most small business owners to raise the capital needed to start, operate, or expand their ventures?
Andre45 [30]

Answer:

1. It is not easy to get funds for a start up, as many banks do not consider it as a successful decision to provide loan to a start up, as the feasibility of recovery of loan cannot be identified and guaranteed.

2. Venture capitalists also faces the same issue as of bank, also they are large equity investors and tend to invest in even larger project.

3. Private investors do not blindly invest and rather are more cautious then banks or venture capitalists, as because they do not huge funds to invest, and with less amount of investment they need even higher assurance.

4. Public stock is never available for a start up as for public stock issue you need great credibility, and good previous record.

4 0
3 years ago
In business writing, it is effective to tell a story because readers can_____.
Elan Coil [88]
Write the story brief so the readers can paraphrase. they can basically rewrite it.<span />
7 0
3 years ago
Read 2 more answers
The company cost of capital for a firm with a 60/30/10 debt/common/preferred split, 8% cost of debt, 15% cost of equity, preferr
sveticcg [70]

Answer:

b. 8.82%

Explanation:

WACC = Cost of equity x Weight of equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt

Cost of Preferred Stock calculation :

Cost of Preferred Stock = Expected dividend / Market Price x 100

                                        = $6 / $50 x 100

                                        = 12 %

After tax cost of debt calculation :

After tax cost of debt = Interest x (1 - tax rate)

                                    = 8 % x (1 - 0.35)

                                    = 5.20 %

therefore,

WACC = 15% x 30 % + 12 % x 10 %+ 5.20 % x 60 %

           = 8.82 %

6 0
3 years ago
When deciding whether a business concept is
Ivanshal [37]

Answer:

no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no

4 0
3 years ago
Boltz Manufacturing, a parts supplier to the auto industry, has been using the behavioral approach to management for over 100 ye
AURORKA [14]

Answer:

The answer is: False

Explanation:

The "behavioral approach o management" and the "human relations movement" are basically the same thing.

The human relations movement was founded by sociologist Elton Mayo in the 1930s after his famous Hawthorne experiments. He would increase or decrease the light intensity in the factory and observed how it affected productivity.

He discovered that after increasing or decreasing lights the productivity always raised. So what really altered productivity was the fact that employees felt that management cared about them.  

6 0
3 years ago
Other questions:
  • "The MSRB online system that gives non-professional investors key information about municipal securities, including issuer finan
    13·1 answer
  • What is the purpose of the truth in lending act?
    12·2 answers
  • Wilson company paid 6,700 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The ba
    12·1 answer
  • When Claire purchased her new cell phone, she was offered an opportunity to purchase a car charger and a cover together at a red
    9·2 answers
  • At the start of the current year, SBC Corp. purchased 25% of Sky Tech Inc. for $46 million. At the time of purchase, the carryin
    8·1 answer
  • Suppose you know a company's stock currently sells for $80 per share and the required return on the stock is 14 percent. You als
    5·1 answer
  • Your company is trying to decide which one of two projects it should accept. Both projects have the same start-up costs. Project
    9·1 answer
  • Name any four examples of economically marginalised group​
    9·1 answer
  • A type of service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party
    13·1 answer
  • A company is deciding between two options: (1) purchase a piece of equipment for $10,000 or (2) lease the same piece of equipmen
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!