7. If a consumer views a unit of consumption in period 1 as a perfect substitute (one for one) for a unit of consumption in period 2 and if the real interest rate is positive, the consumer will consume only in period 1. consume only in period 2. А. В. С. consume equal amounts in each period. D. consume more in period 1 than in period 2 if income elasticity exceeds 1, otherwise consume more in period 2 than in period 1. E. equalize expenditures but not consumption in the two periods. 8. The nominal interest rate is 2% and the inflation rate is 3%. A rational consumer А. will not save since the real interest rate is negative. В. will save less than 1% of her income. С. will save the same amount regardless of the inflation rate; only the nominal interest rate matters. D. might save despite the negative real interest rate. E. will necessarily save less if the inflation rate rises and the nominal interest rate does

7. If a consumer views a unit of consumption in period 1 as a perfect substitute (one for one) for a unit of consumption in period 2 and if the real interest rate is positive, the consumer will consume only in period 1. consume only in period 2. А. В. С. consume equal amounts in each period. D. consume more in period 1 than in period 2 if income elasticity exceeds 1, otherwise consume more in period 2 than in period 1. E. equalize expenditures but not consumption in the two periods. 8. The nominal interest rate is 2% and the inflation rate is 3%. A rational consumer А. will not save since the real interest rate is negative. В. will save less than 1% of her income. С. will save the same amount regardless of the inflation rate; only the nominal interest rate matters. D. might save despite the negative real interest rate. E. will necessarily save less if the inflation rate rises and the nominal interest rate does

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 38P: Suppose you are borrowing 25,000 and making monthly payments with 1% interest. Show that the monthly...

See similar textbooks

Similar questions

Suppose you are borrowing 25,000 and making monthly payments with 1% interest. Show that the monthly payments should equal 556.11. The key relationships are that for any month t (Ending month t balance) = (Ending month t 1 balance) ((Monthly payment) (Month t interest)) (Month t interest) = (Beginning month t balance) (Monthly interest rate) Of course, the ending month 60 balance must equal 0.
10. An announcement that the prices of goods and services in the market are risking would cause an increase in which of the following? O a. The default risk premium O o The risk free rate ) r The liquidity risk premium O o The inflation risk premium
14) What is a market failure? a) Uncertain and unstable movements in the price of a stock. b) A transaction that cannot be completed in the market environment. c) A product is sold below the market value d) A sudden and dramatic decline in the prices of the stock market.
1) This type of analysis demonstrate the impact of small change in price on profit 2) markets are said to be elastic when a ----- change in price has a ---- effect onthe quantity sold:
Company X produces a product, GlueX3, that Company X sales for $5. An opportunity presents itself to reallocate its manufacturing facility and related resources to produce Epoxy10. It believes it can sell Epoxy10 for $8. Explain how this switch creates “value”. Be sure to include for whom.
When a stock market analyst suggests that investors should hold cash instead of stocks or bonds, for what reason are people being encouraged to hold cash? A. speculative demand B. precautionary demand C. transactions demand D. present value demand E. risk-return demand
As part of the employment interview for an accounting job at Sound Design, you have been asked to answer the questions below, based on an invoice from one of Sound Design's vendors, Target Electronic Wholesalers. Invoice Stock # Description Unit Price Amount 4811V Stereo Receivers 50 ✕ $293.50 = _______________________ 511CX Blu-Ray Players 25 ✕ $136.28 = _______________________ 6146M Home Theater Systems 40 ✕ $656.12 = _______________________ 1031A LCD TVs 20 ✕ $594.00 = _______________________ Merchandise Total _______________________ Insurance + Shipping $1,250.00 Invoice Total _______________________ An invoice. The top of the invoice is divided into several distinct sections. The first section is located in the top left of the invoice, is unlabeled, and contains an image of a target with an arrow in the center of the target. The second section is located in the top center of the invoice, is unlabeled,…
Retailer Budget D. Tomlinson Retail seeks your assistance in developing cash and other budgetinformation for May, June, and July. The store expects to have the following balances at the end ofApril:Cash $ 5,500Accounts receivable 437,000Inventories 309,400Accounts payable 133,055The firm follows these guidelines in preparing its budgets:∙ Sales. All sales are on credit with terms of 3/10, n/30. Tomlinson bills customers on the last day ofeach month. The firm books receivables at gross amounts and collects 60% of the billings withinthe discount period, 25% by the end of the month, and 9% by the end of the second month. Thefirm’s experience suggests that 6% is likely to be uncollectible and is written off at the end of thethird month.∙ Purchases and expenses. All purchases and expenses are on open account. The firm pays its payables over a 2-month period with 54% paid in the month of purchase. Each month’s units of endinginventory should equal 130% of the next month’s cost of sales. The…
Annie tells her granddaughter, Mary, that in 1934 you could buy a house for $ 17,000 and a jacket for $ 6 . Mary says that in 2018 such a house costs $ 275,000 and such a jacket costs $ 60 . The CPI in 1934 was 15.2 , and in 2018 , it was 245.4 . Which house has the lower real price? Which jacket has the lower real price? The house with the lower price is the _______, and the jacket with the lower price is the _______. A. $275,000 house in 2018; $6 jacket in 1934 B. $17,000 house in 1934; $60 jacket in 2018 C. $275,000 house in 2018; $60 jacket in 2018 D. $17,000 house in 1934; $6 jacket in 1934
Evaluate the following statements:S1. Any investment income of general borrowing is deducted from capitalizable borrowing cost.S2. If the asset is financed by specific borrowing but a portion is used for working capital purposes, the borrowing shall be treated as general borrowing in determining capitalizable borrowing cost. a.False, False b.False, True c.True, True d.True, False
In a certain state, the sales tax T on the amount of taxable goods is 8% of the value of the goods purchased (x), where both T and x are measured in dollars. (a) Express T as a function of x.T(x) = (b) Find T(180) and T(5.10). (Round your answers to two decimal places.) T(180) = T(5.10) =
Write TRUE if the statement is correct, FALSE if incorrect. 7. Our money fluctuates depending on the economic status of our country. a. true b. false 8. It is really important to observe the specifications prescribed by the NEDA in the creation or publication of new denominations. a. true b. false