Answer:
Option A is correct.
deficit; negative
Explanation:
In a small open economy, starting from a position of balanced trade, if the government increases domestic government purchases, this produces a tendency toward a trade <u>deficit </u>and <u>negaive</u> net capital outflow.
This corresponds to the concept of twin deficits where a budget deficit that results from increased government purchases, also results in current account deficit. Since trade deficit implies negative NX there is a negative NCO.
Option d. $35.00 is the share price that one should pay for the stock today to get the required return
The share price, or the price you will pay for the company's stock right now, can be calculated using the necessary rate of return calculation, the formula is as follows:
RRR=(EDP/SP)+DGW
where;
RRR=required rate of return
EDP=expected dividend payment from share
SP=share price
DGW=dividend growth rate
In our case:
RRR=15.40%=15.4/100=0.154
EDP=$2.80
SP=unknown
DGW=7.40%=7.40/100=0.074
Substituting the values in the formula we get the following:
0.154=(2.80/SP)+0.074
(0.154-0.074)=(2.80/SP)
0.08=2.80/SP
SP=2.80/0.08
So, the share price of the stock=$35
Learn more about dividends:
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C because when you want something less they make it cheaper hoping you’ll want it more. McDonald’s coffee is cheaper then Starbucks making it a bargain and poor people want it
Answer:
No, Watching TV has an opportunity cost
Explanation:
Opportunity costs represent the forfeited benefits for preferring a certain option over others. It is the foregone benefits from the next best alternative.
Watching TV for two hours has an opportunity cost. By watching TV, a person has sacrificed doing other things. The two hours could have been used in other ways like working, studying, swimming, or playing. By watching TV, the person missed benefits from the other activities. The other activity that would have resulted in more benefits other than watching TV is the opportunity cost.
