Answer:
The correct answer is: an expansionary gap; decrease the money supply.
Explanation:
An expansionary gap is when genuine output surpasses potential output. At the end of the day, the economy is incidentally working over its long-run potential as estimated by real GDP.
Answer:
$2,090 should be charged as rent to obtain maximum profit.
Explanation:
Let's assume x is the number of occupied apartment.
Therefore, the total rent the company is getting can be represented as;
{(560 + 45(80-x)}x-50x
Y=560x + 3600x - 45x^2 - 50x
Y=4110x - 45x^2
Y^'=(4110x - 45x^2)^'
Y=4110 - 90x
Y=0
4110-90x = 0
90x = 4110
x = 45.67
Rent is therefore;
560 + (80 - 46)45
=560 + 1530
=$2,090
Answer:
B.) $13.00
Explanation:
Assuming Shawn worked for the whole year.
Assuming the year had 52 weeks.
Each week had 40 hours. the year had 40x52 hours
i.e., the Swan worked for 2,080 hours in the year
Total amount earned = $27,040 for , 2,080 hours.
pay per hour = $27,040/2,080
=$13 per hour.
Answer:
D.
Municipal bond because the equivalent taxable yield is 6.6%
Explanation:
we should make the important difference that municipal bonds are tax free while corporate bonds don't.
Therefore we should solve for the after tax rate fo the corporate bond:
The corporate bond as a yield of 4.5% after taxes which is lower than the municipal bond. This make it more attractive
We can also solve for the pre-tax rate of the municipal bond:
the municipal bonds would be equivalent to a 6.6% corporate bonds.
This makes option D correct.
Answer:
$7,245.00
Explanation:
Calculation for the value of the depreciation tax shield
Using this formula
Depreciation tax shield Value =Depreciation*Tax rate
Let plug in the formula
Depreciation tax shield Value = $34,500 × .21
Depreciation tax shield Value = $7,245.00
Therefore the value of the depreciation tax shield will be $7,245.00
