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3 years ago

1The main reason that U.S. currency cannot be turned in to the government in exchange for a tangible asset such as gold is that:

1 answer:

7 0

The correct answer for the question that is being presented above is this one:
(1) B)People prefer tangible items, so the government would not be able to satisfy demand for the tangible item at any fixed rate of exchange
(2) B)Potential buyers of the assets of a bank, incorrectly rumored to be distressed, may suspect the assets to be of poor quality.
(3) C) The Federal Reserve ("the Fed") stands ready to inject reserves into the system more quickly in a crisis.
(4) A)Checkable Deposits / Required Reserves

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If the average propensity to consume is 0.75, and the marginal propensity to consume is 0.70, if income rises by $4,000, consump

LUCKY_DIMON [66]

Answer:

$2,800

Explanation:

The computation of the increase in consumption is shown below:

= Marginal propensity to consume × rise in income

= 0.70 × $4,000

= $2,800

Hence, the consumption would be increased by $2,800

We simply applied the above formula i.e. marginal propensity to consume is multiplied with the rise in income so that the correct answer could come

7 0

3 years ago

A south sea island produces only coconuts. In 2010, the price of a coconut is $1.50 and the quantity produced is 300. In 2012, t

Semenov [28]

1.50*300=$450
0.5*350=$175
(175/450)*100=39%
Real GDP in 2012 is 39%

8 0

3 years ago

A project will produce an operating cash flow of $136,000 a year for three years. The initial cash outlay for equipment will be

pashok25 [27]

Answer:

NPV =$ 60,311.80

Explanation:

The net present value (NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

0 1 2 3

Operating cash flow 136,000 136,000 136,000

Initial cost (274,000)

Working capital (61,000 ) 61,000

Salvage value 15000

Net cashflow (335,000) 136,000 136,000 212,000.

PV inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)

= 395,311.80

NPV =395,311.80 -335,000

=$ 60,311.80

3 0

3 years ago

In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cos

musickatia [10]

Answer: $2500

Explanation:

From the question,

Average variable cost(AVC) = $50

Average total cost (ATC) = $75

Output (Q) = 100

Since Average fixed cost is the difference between the average total cost and the average Variable cost. This will be:

AFC = ATC - AVC

AFC = $75 - $50

AFC = $25

We should note that:

AFC = TFC / Q

TFC = AFC × Q

TFC = $25 × 100

TFC = $2500

Therefore, total fixed cost is $2500

5 0

3 years ago

jillian wishes to purchase an all-inclusive insurance policy for her new car. If an insurance company quotes her a price of $100

DerKrebs [107]

Ask what coverage is included for $100.

A low cost policy may not be an all-inclusive policy- you always have to look at the details.

6 0

3 years ago