f the multiplier in an economy is 3, a $30 billion increase in net exports will Multiple Choice increase GDP by $90 billion. reduce GDP by $10 billion. decrease GDP by $90 billion. increase GDP by $30 billion.
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If the multiplier in an economy is 3, a $30 billion increase in net exports will
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increase
GDP by $90 billion. -
reduce GDP by $10 billion.
-
decrease GDP by $90 billion.
-
increase GDP by $30 billion.
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- An economy in which household consumes 75% of all additional income and all taxes are lumpsum, an when government injects a stimulus of GHC 40 million GDP will? A. Increase by GHC 40 millionB. Decrease by GHC 40 millionC. Increase by GHC 80 millionD. Increase by GHC 160 millionE. Decrease by GHC 160 millionAssume you are considering a USD 100,000 investment for which the future cash flows depend on the state of the economy. What are the expected cash flow and rate of return of the investment considering the three probability of the state of the economy? State of the economy Probability of the states CF from the investment % returns (CF / Investment cost) Economic recession 50% USD 10,000 10% (10,000 / 100,000) Moderate economic recession 40% USD 12,000 12% (12,000 / 100,000) Strong economic recession 10% USD 14,000…Assume that the following are the data acquired: Consumption ……………… 200M Imports …………………50M Investment ………………. 55M Deflator ………………..1.20 Government Spending....…..120M Population …………….100M Exports ………………………. 80M Compute for the Nominal GDP.
- A developing country has determined that each additional $1 billion of investment in capital goods adds 0.3 percentage point to its long-run average annual rate of growth of per capita real GDP. Domestic entrepreneurs recently began to seek official approval to open a range of businesses employing capital resources valued at $27 billion. If the entrepreneurs undertake these investments, and assuming that other things are equal, calculate the nation's long-run average annual rate of growth of per capita real GDP up to a fraction of a percentage point. nothing percent. (Round your answer to one decimal place.)If the government wishes to decrease GDP by $2,000b, and the MPC is 0.6, it should: Question 25 options: increase its spending by $800b. decrease its spending by $1,200b. increase its spending by $1,200b. decrease its spending by $800b.Most economies have a goal of maximizing the average consumption per period. Assume that during each year, an economy saves the same (to be determined) percentage S of its production. During a year in which the beginning capital level is K, a quantity K1y2 of capital is produced. If the economy saves a percentage S of its capital, then during the current year it consumes (1 2 S)K units of capital and, through savings, adds (SK) 1y2 units of capital. Also, during any year, 10% of all capital present at the beginning of the year depreciates or wears out. a. What annual savings percentage S maximizes the long-run average consumption level? Assume that year 50 represents the long run, so that the objective is the consumption level in year 50. You can assume the initial capital is 1 (for some appropriate measurement unit). b. Use SolverTable to see how the optimal value of S depends on the annual depreciation rate.
- Scenarios: You work in the macroeconomic research department of an investment bank. Based on your modelling of the economy, you think that in the next few months US GDP will evolve according to three basic scenarios: Scenario A: GDP will rise 3%. This will send the S&P ETF to 414. Scenario B: GDP will stagnate. S&P ETF will stay at 407. Scenario C: GDP will fall 2%. This will send the S&P ETF to 400. Question 1: Compute the payoff and net payoff of a bear spread strategy built with put options in the three scenarios above. The put options should have strikes 405 and 409 and mature in February. Draw the profile of the bear spread strategy. Use the data in Table 2. Please show your calculations. Discuss your result.17- Assume that a country estimates its M1 money supply at $20 million. A broader measure of the money supply, M2, is $50 million. The country's gross domestic product is $100 million. Production or real output for the country is 500,000 units or products. a. Determine the velocity of money based on the M1 money supply. b. Determine the velocity of money based on the M2 money supply. c. Determine the average price for the real output.on the pro forma income statement sales are expected to increase by 23%. If the net margin is expected to increase by 18% and net profit last year was 100 million, what is the net profit projected to be? A) 118 million. B)123 million. C )158 million D) 141 million
- The Scenarios: You work in the macroeconomic research department of an investment bank. Based on your modelling of the economy, you think that in the next few months US GDP will evolve according to three basic scenarios: Scenario A: GDP will rise 3%. This will send the S&P ETF to 414. Scenario B: GDP will stagnate. S&P ETF will stay at 407. Scenario C: GDP will fall 2%. This will send the S&P ETF to 400. Question Compute the payoff and net payoff in the three scenarios above of a strategy made of two legs: Leg 1: a long straddle with maturity in February and strike 407. Leg 2: a short straddle with maturity in March and strike 407. Use the data in Table 2. Discuss why an investor might be interested in trading this strategy. What is the investor betting on?If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5, then net income should increase by: A. 167%. B. 100%. C. 334%. D. 250%.11 If sales increase from P80,000 per year to P140,000 per year, and if the operating leverage factor is 5, then net operating income should increase by: Group of answer choices 375% 167% 334% 250% 150% 875% 188%
