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otez555 [7]
3 years ago
12

Other things equal, if there is an increase in nominal GDP, bond prices will rise. the interest rate will rise. consumption spen

ding will fall. the demand for money will decrease.
Business
1 answer:
Contact [7]3 years ago
5 0

Answer:

the interest rate will rise

Explanation:

For the nominal GDP to increase, the money supply must have increased. This will lead to a higher inflation rate, which will rise the interest rate. Since the interest rate increased, the price of bonds will decrease. Since the money supply increased, private consumption will increase.

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You are scheduled to receive annual payments of $60,000 for each of the next 20 years. The annual rate of return is 8 percent. W
babymother [125]

Answer:

= $ 219,657.43

Explanation:

FV of annuity = P x [(1+r) n -1/r]

P = Periodic payment = $ 20,000

r = Periodic interest rate = 0.08

n = Number of periods = 20

FV = $ 60,000 x [(1+ 0.08)20 -1/0.08]

  = $ 60,000 x [(1.08)20 -1/0.08]

  = $ 60,000 x [(4.66095714384931 -1)/0.08]

  = $ 60,000 x (3.66095714384931/0.08)

= $ 60,000 x 45.7619642981163

= $ 2,745,717.85788698 or $ 2,745,717.86

FV of annuity due =(1+r) x P x [(1+r) n -1/r]

                              = (1+0.08) x $ 2,745,717.85788698

                              = 1.08 x $ 2,745,717.85788698

                             = $ 2,965,375.28651794 or $ 2,965,375.29

Difference in FV of ordinary annuity and annuity due

                             = $ 2,965,375.29 - $ 2,745,717.86

                             = $ 219,657.43

3 0
3 years ago
In producing product AA, 6,300 pounds of direct materials were used at a cost of $1.10 per pound. The standard was 6,000 pounds
abruzzese [7]

Answer:

300 A

Explanation:

(SQ - AQ) SP

(6000 - 6300)1

300 A

It means that actual quantity produced is worse than expected quantity.

5 0
3 years ago
On December 31, 2020, Wayne, Inc. sold $4,000,000 (face value) of bonds. The bonds are dated December 30, 2020, pay interest ann
Andreas93 [3]

Answer:

Wayne, Inc.

1. The stated interest rate for this bond issue is:

= 8%.

2. The market interest rate for this bond issue is:

= 9%.

3. The selling price of the bonds as a percentage of the face value is 97.5% ($3,900,000/$4,000,000 * 100)

4. Journal Entry to record the sale of the bond issue on December 31, 2020:

December 31, 2020:

Debit Cash $3,900,000

Debit Bonds Discounts $100,000

Credit Bonds Payable $4,000,000

To record the bonds proceeds, discounts, and liability.

5. December 31, 2021:

Debit Bonds Interest Expense $351,000

Credit Bonds Amortization $31,000

Credit Cash $320,000

To record the first payment of interest and amortization.

Explanation:

a) Data and Calculations:

Face value of bonds = $4,000,000

Bonds price = $3,900,000

Discount =   $100,000

December 31, 2021:

Interest expense = $351,000

Market interest rate = $351,000/$3,900,000 * 100 = 9%

Cash payment =     $320,000

Coupon interest rate = $320,000/$4,000,000 * 100 = 8%

7 0
3 years ago
Ben is saving 1/5 of his weekly pay to buy a car Write and solve an equation to find what weekly pay w results in savings of $61
creativ13 [48]

Answer: X=$307.50

Given:

Ben’s savings weekly = $61.50

It is 1/5 or 20% of his weekly savings

To find Ben’s weekly pay in $

Let X= Ben’s weekly pay in $

To solve, we use the equation

1/5X=61.50

.20X=61.50

X=61.50/.20

X=$307.50


8 0
3 years ago
Economists refer to their methodology for analyzing oligopolies as a game theory​ because, as in​ games _____.
melisa1 [442]

Answer:

e. all of the above

Explanation:

Just like inn games, all the features enumerated in the options apply.

Specifically, actions by players determine outcomes. Also, players employ strategies to obtain desired results.

7 0
3 years ago
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