Answer:
a. Open market sale of $30 billion
b. Open market purchase of $15 billion
Explanation:
Answer: 14.4%
Explanation: The G that we are computing in this question is the sustainable growth rate, it is the growth rate that a company can attain and maintain without any problem.
we know that,
growth = (retention ratio)*(return on equity)
growth = (1- dividend payout ratio)*(return on equity)
growth = 14.4%
Answer:
c. short-run average total cost is typically above long-run average total cost
Explanation:
In the case when the average of the total cost of the short run should be compared with the average of the total cost of the long run for a given output level so this means that the average of the total cost of the short run should be more than the average of the total cost of the long run
Therefore as per the given situation, the option c is considered
Answer: b) lower in long-run equilibrium than in short-run equilibrium.
Explanation:
A self regulating economy will try to move to the long run Equilibrium.
From the graph attached you will notice that the Price Level at the point where the Long Run Curve intersects with the Aggregate Demand curve is lower than the point where the Short Run Supply curve intersects with the same Aggregate Supply.
This means that Prices in the long term at equilibrium will be less than prices in the short term at Equilibrium should the Economy be a self regulating type that will move towards a long term Equilibrium.
Answer:
a.equity method investments where a company has holding of less than 20 %