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2 years ago

How will the increase in government spending financed by borrowing affect national savings?.

Business

1 answer:

Whitepunk [10]2 years ago

8 0

Increament in government spending which is financed by borrowing will most likely affect national savings.

This is because borrowing money means you are spending from your future income.

The negative effect of spending borrowed money will most likely be felt when the money is not used for money yielding ventures.

This means that when borrowed money is not used to boost the economy of a country, it will most likely lead to the depletion of the national savings or reserve.

<h3>Viable areas to utilizing borrowed money</h3>

Infrastructure development
power
Education
Health
Transportation
Research

Learn more about National Savings at brainly.com/question/15109837

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An investment of $1 each in two different securities led to a value of $11 (Security A) and $16 (Security B), respectively, afte

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Answer:

Explanation:

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years

Security A : 11 = 1( 1 + r)^15

11^(1/15) = 1( 1 + r)

1.173 = 1 + r

r = 1.173 - 1

r = 17.33%

Security A : 16 = 1( 1 + r)^15

16^(1/15) = 1( 1 + r)

1.20 = 1 + r

r = 1.2 - 1

r = 0.2

r = 20%

Security B earned a higher average annual rate of return as 20% is greater than 17.33%

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2 years ago

On the morning of July 15, 2006, fourteen school buses were vandalized. The buses, property of Walt Whitman Middle School, were

Fofino [41]

Answer:

B. the lack of discipline of Edgar Allan Poe Academy students

Explanation:

3 0

2 years ago

Read 2 more answers

Twenty years ago, you won a state lottery, and you received $15,000 at the end of each of the next 10 years, and $20,000 at the

oksian1 [2.3K]

The value of the amount won at the lottery at the end of 20 years is $723,672.24.

<h3>What is the value at the end of 20 years?
</h3>

The formula for calculating future value of annuities is: yearly amount x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

Where:

r = interest rate
n = number of years

Annuity factor for the first ten years = [(1.09^10) - 1] / 0.09 = 15.19293

15.19293 x $15,000 = $227,893.95

Annuity factor for the last 5 years = [(1.09^5) - 1] / 0.09 = 5.9847

5.9847 x 20,000 = $119,694.21

Future value of the lump sum of $227,893.95 in 10 years = $227,893.95 x (1.09^10) = 539,507.86

Future value of the lump sum of $119,694.21 in 5 years = $119,694.21 x (1.09^5) = $184,164.38

Value in year 20 = $184,164.38 + 539,507.86 = $723,672.24

To learn more about annual annuities, please check: brainly.com/question/24108530

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4 0

1 year ago

Classifying Cash Flows Identify the type of cash flow activity for each of the following events (operating, investing, or financ

Sphinxa [80]

Answer:

Cash Flow activities for each event are:

a. Redeemed bonds (Financing activity)

b. Issued preferred stock (Financing activity)

c. Paid cash dividends (Financing activity)

d. Net income (Operating activity)

e. Sold equipment (Investing activity)

f. Purchased treasury stock (Financing activity)

g. Purchased patents (Investing activity)

h. Purchased buildings (Investing activity)

i. Sold long-term investments (Investing activity)

j. Issued bonds (Financing activity)

k. Issued common stock (Financing activity)

-Operating activities entails cash activities related to net income.

-Investing activities encompasses cash activities related to non-current assets.

-Financing activities include cash activities related to owners' equity and non-current liabilities

7 0

2 years ago

Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of di

Gnom [1K]

Answer:

<u>December 31, 2018</u>

Debit : Dividend $40,000

Credit : Shareholders for dividends $40,000

Explanation:

When dividends are declared, we Debit an Equity Element - Dividend and Credit the Liability - Shareholders for dividends.

Calculation of this dividend is made on the stockholders in existence at the on a stated date (January 15 in this case) and at par value ($2) as follows :

Dividend = 100,000 x $2.00 x $0.20 = $40,000

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2 years ago