Answer:
The Correct Option is "B"
Explanation:
Total consumption model was created accordingly of traditional model. It shows the connection between the GDP and arranged spending. The condition of consumption model is as per the following:
Y = C + I + G + NX
Where, Y is the genuine GDP, C is Consumption, I Refers to net investment, G is government buys and NX is net ex[port.
The total use model accept that gross investment (I), government buys (G), and net export (NX) are independent to of genuine GDP (Y) as they don't depend on salary of the economy.
Answer:
$880 favorable
Explanation:
The computation of direct materials price variance for last month is shown below:-
Direct material price variance = Actual quantity × (Standard price - Actual price)
= 2,200 × ($8 - ($16,720 ÷ 2,200)
= 2,200 × ($8 - 7.6)
= 2,200 × $0.4
= $880 Favorable
Therefore for computing the direct materials price variance for last month we simply applied the above formula.
Answer:
c. there is a negative externality.
Explanation:
At the time when one individual actions develops the benefits for others but at the same time they dont pay so it is to be known as positive externality
At the time when one individual action develops loss but the other who received the loss because of the action of the person so for this they didnt get the compensation so it is the negative externality
As we can see that there is three types of values so the correct option is c.
Answer:
a. 1.27%
b. 15.24%
c. 16.35%
Explanation:
a. What is the monthly return on this investment vehicle?
The formula for the value of a Perpetuity is;
Value = Payment/ rate
Rate = Payment/ Value
Rate = 1,450/114,000
= 0.0127
= 1.27%
b. What is the APR?
APR is the annual rate. The above figure is the monthly rate.
APR = Monthly rate * 12
= 1.27 * 12
= 15.24%
c. What is the effective annual return?
Effective annual return = [1 + (APR/n)]^n – 1
n is the number of compounding periods which is 12 here for monthly compounding.
= [1 + (15.24%/12)]^12– 1
= 16.35%