Answer:
D. 321,600.
Explanation:
Present value is the current value of a future amount that is to be received or paid out.
Given:
Present value, P = $60000
Present value of ordinary annuity for the remaining 6 years = 4.36
The Present value, PV of the note is equal to the first payment + the Present value of ordinary annuity (all at 10%) of the remaining six payments
Sales revenue = $60000 + (60,000 × 4.36)
= $60000 + $261,600
= $321,600
Thus, sales revenue of $321,600.
Question:
If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.
A) saving; increased
B) population growth; decreased
C) depreciation; decreased
D) total output growth; decreased
Answer
The correct answer is A) <u>Saving</u> rate of the economy must be i<u>ncreased</u> in order for the economy to reach the Golden Rule Level of the Capital Stock.
Explanation
Golden Rule Level of the Capital Stock is the level at which
MPK = δ,
Where MPK is Marginal Product; and δ the depreciation rate;
so that the marginal product of capital equals the depreciation rate.
In the Solow growth model, a <em>high saving rate results in a large steady-state capital stock and a high level of steady-state output.</em> A low saving rate results to a small steady state capital stock and a low level of steady-state output. Higher saving leads to faster economic growth only in the short run. An increase in the saving rate raises growth until the economy reaches the new steady state. That is, if the economy retains a high saving rate, it will also maintain a large capital stock and a high level of output, but it will not maintain a high rate of growth forever .
Answer: Economy of the country.
Explanation:
The environmental characteristics affecting businesses in Rhenasia is the negative economy of the country. The country of Rhenasia is facing a recession in their economy, this has directly led to a drop in sale of businesses across the country.
Answer:
B. The distribution will be a dividend if current earnings and profits are positive and exceed the distribution.
