Result of active fiscal policy : there may be stimulation of the economy in the short run, but there will be harmful effects to the economy in the long run.
Explanation:
Active fiscal policy implies that Congress and the President are actively attempting to shift the trajectory of the economy by adjustments in taxes and/or government expenditure.
In an open market, monetary policy often influences the rate of exchange and trade balance.
Moreover, in the long term, the development of international debt, which stems from large government expenditures, can lead investors to mistrust US assets which may trigger the exchange rate to fall.
Answer:
consolidated balance sheet:
land 525,000
Explanation:
The Princeton's land will be valued at book value.
The Sheffield's land will be valued at market value as when Princeton acquired Sheffield the land was appraised at his market value.
So 500,000 x 75% = 375,000 land of Sheffield
<u>Total land:</u>
Princeton Land 150,000
Sheffield Land <u> 375,000 </u>
Total 525,000
Answer:
The ROI is 2
Explanation:
For computing the ROI we have to apply the formula which is shown below:
= Return in terms of benefit ÷ investment
where,
Return is in terms of sales which equals to $20,000
And, the investment equals to
= New color cost + video launching cost
= $5,000 + $5,000
= $10,000
Now put these values to the above formula
So, the answer would be equal to
= $20,000 ÷ $10,000
= 2
Answer:
the required rate of return for Barker's investor is 10.17%
Explanation:
<u><em>First, We have to calcualte the CAPM </em></u>
(Capital Assets Pricing Model)
risk free = 0.02
premium market = (market rate - risk free) 0.047
beta(non diversifiable risk) = 1.1
Ke 0.07170
now we add the inflation premium:
0.0717 + 0.03 = 0.1017 = <em>10.17%</em>
Answer:
The correct answer is option d.
Explanation:
The long-run aggregate supply curve is a vertical straight line. This is because, in the long run, the output level is not affected by price changes. Instead, output level changes with the changes in the state of technology and level of inputs. In the long run, when price level increase, the factor prices or price of inputs will increase as well. So there will be no change in output due to the change in the price level.
The vertical long-run aggregate supply curve also reflects classical dichotomy that in the long run, when all the resources will be fully employed, an increase in the aggregate demand cause the price level to rise while supply remains constant.
It also indicates that monetary policy only affect the price level, the economic output remains constant.
