If the government wanted to enact a policy to increase living standards in the country, it should

What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?A. Small au

mylen [45]

Answer: The explanation are as follows:

Explanation:

(A) If small automobiles become more fashionable then this will attract the consumers attention towards small automobiles. So, this will increase the demand for the small automobiles.

(B) If the price of large automobiles rises and the price of small automobiles remains the same. They both are substitute goods. So, the demand for small automobiles increases as the price of its substitute goods increases.

(C) If small automobiles are inferior good and there is reduction in the income of consumers. This will increase the demand for small automobiles as the income of the consumers decreases.

(D) If consumers anticipate that the price of small autos will greatly come down in the near future then they stop buying small automobiles today. So, the demand for small automobiles decreases because consumers waiting for the lower price in the near future.

(E) Gasoline and small automobiles are complementary goods, therefore, if the price of gasoline substantially drops, as a result demand for small automobiles increases.

4 0

3 years ago

Samantha opened a savings account this morning. Her money will earn 5 percent interest, compounded annually.After five years, he

Valentin [98]

Answer:

Samantha could have deposited less money and still had $5,600 in five years if she could have earned 5.5 percent interest

Explanation:

Giving the following information:

Her money will earn 5 percent interest, compounded annually. After five years, her savings account will be worth $5,600.

First, we will calculate the original deposit. Then, we will tackle each statement and find the true one.

PV= FV/(1+i)^n

PV= 5,600/ (1.05^5)= $4,387.75

a. Samantha deposited more than $5,600 this morning. False, we just prove that she deposit less than 5,600

b. Samantha could have deposited less money and still had $5,600 in five years if she could have earned 5.5 percent interest. <u>True. The higher the interest rate, in the same period the higher the ending value or lower the present value. </u>

c. The present value of Samantha's account is $5,600. False, the final value is $5,600.

d. Samantha would have had to deposit more money to have $5,600 in five years if she could have earned 6 percent interest. False, she would have to deposit less than $5,600

e. Samantha will earn an equal amount of interest every year for the next five years. False. Because interest gets capitalized, each year the interest earned is higher.

8 0

4 years ago

Cassidy is planning to obtain a loan from her bank for $210,000 for a new home. the bank has approved cassidy’s loan at a fixed

Grace [21]

Cassidy's approximate monthly payment stands at $1420. if Cassidy lives planning to obtain a loan from her bank for $210,000 for a new home.

<h3>What is the payment monthly?</h3>

The monthly payment is the quantity paid per month to pay off the loan in the time period of the loan. When a loan is taken out it isn't only the top amount, or the original payment loaned out, that needs to be repaid, but also the good that accumulates.

<h3>What is a loan amortization schedule?</h3>

It is described as the systematic method of representing loan payments according to the time in which the principal amount and interest exist mentioned in a list manner

It is given that:

Cassidy lives planning to obtain a loan from her bank for $210,000 for a new home.
A fixed annual interest rate of 2.7% compounded monthly for 15 years.

The formula is:

$P=F_{P} (i)/1-(1+i)^{-1}$