For questions a, b
- An additional $320 billion in spending is required.
- Reduced consumption of $320 billion is needed for this to occur.
<h3>By how much must investment increase?</h3>
Generally, the equation for the investment accounts is mathematically given as
x=($1tri / $8 tri) * 100
x= 12.5%
Now we know that the answer lies in the fact that the investment rate may be increased by 4% for every 1% rise in economic growth.
Therefore,
=($8 trillion * 0.165%)
=$1.32 trillion
The additional investment is 3.2% of GDP.
Therefore, an increase in investment of ($1320 - $1000) billion is needed to raise GDP growth by 1 percentage point.
This means an additional $320 billion in spending is required.
(b).
In conclusion, Since we were already aware that we would need to cut down on our spending in order to make this investment, we may conclude that:
Reduced consumption of $320 billion is needed for this to occur.
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The formula of the present value of an annuity ordinary is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
PV present value 500000
PMT monthly payment?
R interest rate 0.08
K compounded monthly 12
N time 30 years
Solve the formula for PMT
PMT=pv÷ [(1-(1+r/k)^(-kn))÷(r/k)]
PMT=500,000÷((1−(1+0.08÷12)^(
−12×30))÷(0.08÷12))
=3,668.82...answer
Hope it helps!
If amounts of $2600 and $2000 are invested in raxin accounting bonds and stocks respectively, bonds will give a return over such investment that is more than $158 compared to that of stocks.
<h3>What is return on investment?</h3>
Using the given information, it can be calculated that the returns generated by bonds over an investment of $2600 for nine years will be $6870; whereas that for stocks will be $6712 for an investment of $2000.
Hence, it has been computed that bonds have a generated a better return on investment at the rate of 11.4 percent for a period of nine years that is more by $158 than that of returns by stock investments.
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Answer:
Effect on income= $0
Explanation:
Giving the following information:
He is currently grooming 120 dogs per week. If instead of grooming 120 dogs, he grooms 121 dogs, he will add $65.65 to his costs and $65.65 to his revenues.
Contribution margin per dog= selling price - unitary variable cost
Contribution margin per dog= 65.65 - 65.65= 0
Effect on income= 0*1= $0