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Marta_Voda [28]
3 years ago
10

Lee saves most of his money from his paycheck; he forgoes restaurant meals, new clothes, and a new car, and he lives in a small

one-bedroom apartment. He understands that his utility is low now. However, his ______________ will give him _____ utility in the future.(A) intertemporal decision making; higher(B) intertemporal decision making; lower(C) planning; lower (D) time-preference decision making; higher
Business
1 answer:
jekas [21]3 years ago
8 0

Answer: Option A    

           

Explanation: In simple words, intertemporal decision making refers to the study of how the decision made by an individual today affects the choices that he or she have in the future. It is based on the assumption that less consumption today will bring significant increase in consumption tomorrow.

In the given case, despite of having enough income to lead a healthy lifestyle  in present,Lee decided to save his money in the future. This will lead to choices fro him that will give him higher utility.

Hence from the above we can conclude that the correct option is A.

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How does the organization of the Federal Reserver System Help it perform its functions?
ludmilkaskok [199]

Answer:

The Federal Reserve System's main duties include conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing banking services. The Federal Open Market Committee is the Fed's monetary policy-making body and manages the country's money supply.

Explanation:

4 0
1 year ago
A coupon bond that pays interest of 4% annually has a par value of $1,000, matures in 5 years, and is selling today at $785. The
jarptica [38.1K]

Answer:

Actual Yiel to maturity is 9.3%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $1,000 x 4% = $40

Selling price = P = $785

Number of payment = n = 5 years

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $40 + ( $1,000 - $785 ) / 5 ] / [ ( 1,000 + $785 ) / 2 ]

Yield to maturity = [ $40 + $43 ] / $892.5  = $83 /$892.5 = 0.0645 = 0.093%

3 0
3 years ago
Assume the corporate tax view of capital structure. Your unleveraged cost of capital is 13%. Your corporate tax rate is 30%. You
sergejj [24]

Answer:

C. 11.05%

Explanation:

The computation of the cost of capital under the proposed leveraging is shown below;

cost of capital is

=Debt÷ value of leverged firm × ((unlevered cost of capital × (1 - tax rate))

=800 ÷ 1600 × ((13% + (13%) × (1 - 30%)))

= 11.0500%

hence, the cost of capital is 11.05%

8 0
3 years ago
Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to
slega [8]

Answer:

Contribution is sales revenue less variable cost. In multiple products environment, it is important that the producer have information about the performance of each product. This is useful for decision making purpose. See income statement below

Explanation:

An income statement showing contribution would suffice:

       Royal Lawrence Company

                                                                  Income statement

                                                      Weedban Greengrow Total

                                                                    $                   $                   $

Sales (sp/unit × unit)                            315,000   900,000         1,215,000

Variable cost (Vc/unit × units)              (<u>98,000)</u>      (<u>325,000)</u>  (<u>423,000)</u>

Contribution                                           217,000      575,000   792,000

Specific fixed cost                              <u>  (132,000)</u>   <u> (37,000) </u> <u>(169,000)</u>

Product profit                                   85,000     538,000   623,000

Common Fixed cost                                                     <u>(100,000)</u>

Total profit                                                                     <u>523,000 </u>

4 0
3 years ago
Read 2 more answers
Monetary policy could be procyclical if the Federal Reserve: a) is late recognizing that a recession has begun and conducts expa
gladu [14]

A) is late recognizing that a recession has begun and conducts expansionary monetary policy.

6 0
3 years ago
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