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AleksandrR [38]
3 years ago
8

Suppose a president of a country uses $450 million to build public schools. The expenditure is entirely financed by borrowing. T

he government did not borrow any money before building the public schools. Before the government borrowing, the equilibrium amount of savings = $800 million. After the government borrowing, the equilibrium amount of savings = $950 million. Use the given information to answer questions 21 - 26.
Assume complete crowding out, how much is the decrease in household consumptions after the government borrowing?
Business
1 answer:
dem82 [27]3 years ago
7 0
950 million dollars every year
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3 years ago
Read 2 more answers
Prior period adjustments are reported as
matrenka [14]

Answer:

c. An addition to (or a deduction from) the beginning balance of retained earnings

Explanation:

A prior period adjustment is the correction of an accounting error that occurred in the past and was reported on a prior year's financial statement, net of income taxes. Prior period adjustment are reported in the statement of retained earnings as an increase or a decrease in the beginning retained earnings. Therefore, the adjusted beginning retained earnings balance is the amount that retained earnings would have been if the error had not been made.

6 0
3 years ago
You are scheduled to receive a $500 cash flow in one year, a $1,000 cash flow in two years, and pay an $800 payment in three yea
Sunny_sXe [5.5K]

Answer:

present value = $9320.06

Explanation:

given data

cash flow 1 year C1 = $500

cash flow 2 year C2 = $1000

pay 3 year C3  = $800

interest rates  r = 10 percent per year = 0.10

solution

we get here present value that is

present value = \frac{C1}{(1+r)} +\frac{C2}{(1+r)^2} +\frac{C3}{(1+r)^3}   ....................1

put here value and we will get

present value =  \frac{500}{(1+0.10)} +\frac{10000}{(1+0.10)^2} +\frac{800}{(1+0.10)^3}

present value = $9320.06

7 0
3 years ago
FV of $600 each 6 months for 5 years at a nominal rate of 12%, compounded semiannually. Do not round intermediate calculations.
Lerok [7]

Answer:

Amount after 5 year will be $1074.5

Explanation:

We have given principal amount P = $600

Time t = 5 year

Rate of interest r = 12%

It is given that amount is compounded semiannually

So time period = 5×2 = 10 period

And rate of interest semiannually will be =\frac{12}{2}=6 %

We have to find future value after 5 year

Future value is given by A=P(1+\frac{r}{100})^n

So A=600\times (1+\frac{6}{100})^{10}

=600\times1.06^{10}

=600\times1.79=1074.5

So amount after 5 year will be $1074.5

8 0
3 years ago
A transnational organization is one where:
yKpoI14uk [10]

Answer:

B. the global viewpoint supersedes national issues

Explanation:

A transnational organization is one that acts in a manner that is beyond the confines of a national state.

An organization may have its headquarters in a country while it's sales are generated in many countries across the globe.

Such an entity will act within the laws and regulation of the countries where the presence of its product is felt however major contributions about the product are not limited to just one country or state.

This defines a transnational organization. A good example is coca-cola.

The right option is B. the global viewpoint supersedes national issues.

5 0
4 years ago
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