Answer:
1.The money demand will rise by 1.154%
2. The money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%
Explanation:
1. Money demand function
ln(m) = β0 +β1 ln(GDP)+β2R
Suppose β1 = 1.5 , β2 = −0.04 , GDP = $ 100 & R = 3%
ln(m) = 1.5 ln ($100) - 0.04 X 0.03
ln(m) = 6.91
m = 1002.247
Suppose the GDP increases by 1%; the new GDP will be = $ 101
ln(m) = 1.5 ln ($101) - 0.04 X 0.03
ln(m) = 6.92
m = 1013.81
If the GDP increases by 1% ,the money demand will rise by 1.154%
2.
If the interest rate increases from 3% to 4%
ln(m) = 1.5 ln ($100) - 0.04 X 0.04
ln(m) = 6.906155
m = $ 998.400
If the interest rate rises from 3% to 4% , the money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%
Answer:
B. $23,000
Explanation:
Recall that, assets are resources that an individual or an organization has which have future economic value that can be measured,
Thus,
Total current assets = Cash + account receivable + supplies + prepaid rents + inventories.
Therefore
Total current assets = 7000 + 6000 + 1000 + 4000 + 5000
= $23,000
Note: Land is not included in CURRENT asset. Land are longterm assets.
economic growth can result from a(n) _____ in government expenditures and a(n) _____ in net exports.
Answer:
C. technological advances are the result of discoveries and choices.
Explanation:
The new growth theory was developed by a man named med Paul Romer. This new growth theory stresses the role which is determined by human choices.
The new growth theory states that technological advances are the result of discoveries and choices, rather than random choices. It explains the fact that new innovations and technological advancement are not the result of random chance, but they occur as a result of humans and their desire for new innovations.
Therefore option C is correct
Answer:
$25,300
Explanation:
The computation of the common shareholders received the dividend for the year 2021 is shown below:
Since in the year 2021, the dividend i.e. declared is $61,000
Now the preference shareholders dividend is
= $510,000 × 0.07
= $35,700
So for common shareholders, the dividend would be
= $61,000 - $35,700
= $25,300
