HERE IS/ARE THE FULL QUESTION(S):
The small island nation of Kaboom is a simple economy with no government, no taxes, and no imports or exports. Kaboomers (citizens of Kaboom) are creatures of habit. They have a rule that everyone saves exactly 40 percent of income. Assume that planned investment is fixed and remains at 225 million Kaboomian dollars. Further assume that autonomous consumption (independent of Y) is zero, so consumption (C) is MPC times Upper YMPC×Y.
The following data are estimates for the island of Kaboom:
bullet• Real GNP (Y): 422 million Kaboomian dollars
bullet• Planned investment spending (I):225 million Kaboomian dollars
You are asked by the business editor of the Explosive Times, the local newspaper, to predict the economic events of the next few months.
Based on the data given, you predict inventories will DECREASE and the level of real GNP will INCREASE.
Things will stop changing when SAVINGS EQUAL INVESTMENT.
Kaboom's economy will reach equilibrium when its real GNP = 563 MILLION Kaboomian dollars
Answer:
The value of the stock is $36.53
Explanation:
To calculate the value of the stock, we'll use the formula
......(a)
where, P = price of stock
D1 = Estimated dividend for next period
r = required rate of return
g = growth rate
First we will calculate D1,
Do is the dividend whic the firm just paid = $4.30
D1 = Do(1+g)
D1 = 4.30(1+2.68)
D1 = $4.41
Substituting the values in the formula....(a)
P = 4.41 / (14.75% - 2.68%)
P = 4.41 / 12.07%
P = $36.53
An organization's vision statement describes what the organization hopes to become in the future.
Answer:
tools, factories, land, and investment capital
Explanation:
The means of production consists of <u>tools, factories, land, and investment capital</u>