Answer:
B) If the firm does not exit the industry in the long run its demand curve will shift to the left.
Explanation:
This is because the statement "If the firm does not exit the industry in the long run its demand curve will shift to the left, " simply means that if the monopolistic competitive firm stays in a particular industry for long, the firm will experience a situation in which less of the good or service is demanded at every price.
However, this cannot be true because a monopolistic competitive firm produces unique products that tend to have its specific customers. These customers, in the long run, will demand more goods and services of the firms which will be affected positively by a lot of reasons including prices of related goods, increase in salary, better economy at large, etc.
Answer:
Debt ratio = 3 : 1
Explanation:
Asset = Capital
Capital = Debt + Equity
I.e Asset = Debt + Equity
1400 = D + 350
D = 1050
Debt ratio = Debt / Equity
Debt ratio = 1050/350
Debt ratio = 3 : 1
Answer:
increase the public debt from $460 billion to $480 billion
Explanation:
Other things equal an increase of treasury bonds from $100 billion to $120 billion in the economy would:
"increase the public debt from $460 billion to $480 billion"
Since the public debt consists of the debt instruments issued by the US goverment, thus, Treasury Bills, Tresaury Notes, Treasury Bonds and U.S. Savings Bonds would constitue public debt, the sum of which would be $460 billion and an increase in treasury bonds from $100 billion to $120 billion would increase the public debt by $20 biilion to $480 billion.
Answer:
The present value is the value today of a sum of money to be received in the future and in general is less than the future value.
Explanation:
The formula to compute the present value is shown below:
Future value = Present value × (1 + interest rate)^number of years
or Present value = Future value ÷ (1 + interest rate)^number of years
Let us take an example
Present value = $2,750
Rate = 5.25% ÷ 2 = 2.625%
Number of years = 1 year × 2 = 2 years
So, the future value
= $2,750 × (1 + 2.625%)^2
= $2,750 × 1.0531890625
= $2,896.27
It is done on semi annual basis. As we can see that the present value is less than the future value
B., because the unemployment rate is the people who were employed
