Answer:
Buy 7% less houses
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income
Income elasticity of demand = percentage change in quantity demanded/ percentage change in income
1.40 = percentage change in quantity demanded/ 5%
Percentage change in quantity demanded = 1.4 × 5% = 7%
Because the coefficient of elasticity is greater than one, it means demand is income elastic. This means quantity demanded is responsive to changes in income. A fall in income would reduce the quantity demanded.
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Answer:
(B) NAV per share is calculated by subtracting the liabilities of the fund from the total assets of the fund, then dividing this number by the total number of shares currently outstanding.
Explanation:
The Net asset value(NAV) of any mutual fund corporation can be determined using below mentioned formula:
Net asset value(NAV) per share=(Current market value of all assets - liabilities)
/Total number of shares outstanding.
Based on the above formula, the statement which best describe the computation to arrive at NAV per share is
(B) NAV per share is calculated by subtracting the liabilities of the fund from the total assets of the fund, then dividing this number by the total number of shares currently outstanding.
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product: A - B - C - D - E - F Apparel: 120,000 - 96,000 - 72,000 - 48,000 - 24,0000 Chemicals(tons): 0 - 24 - 48 - 72 - 96 - 120 U.S. Production Possibilities Product: R - S - T - U - V - W Apparel: 40,000 - 32,000 - 24,000 - 16,0000 - 8,0000 Chemicals(tons): 0 - 16 - 32 - 48 - 64 - 80a. Are comparative-cost conditions such that the two countries should specialize?
Answer:
b. should be; should definitely not be
Explanation:
When conducting a capital budgeting analysis and attempting to account for effects of exchange rate movements for a foreign project, inflation <u>should be </u>included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>should definitely not be</u> included explicitly in the cash flow analysis.
Inflation and movements in exchange rates reduces and impacts the value of cashflows and the real returns to be derived from an investment and must be considered in every investment analysis to take account of the time value of money.
Debt payments are NOT a requirement in investment analysis because the interest rate of the loans have been factored into the cost of capital with which the cashflows have been discounted
Answer:
An apple, potato, and onion all taste the same if you eat them with your nose plugged
Explanation:
