Q: f the MPC is 0.80 then the MPS is
A: The ‘marginal propensity to consume(MPC)’ is referred to as the proportion of an aggregate…
Q: The Tuition Prepayment Option (TPO) offered by many colleges provides savings by eliminating future…
A: The nominal interest rate or money interest rate can be any declared rate of the interest rate. It…
Q: With the given information please calculate NPV, NPW, EUAW, and IRR for each alternative. The…
A: Three alternatives are given: Alternatives 1 2 3 Initial Cost (P/A) $4,150,000 $4,698,438…
Q: Short Answer) A new office building is expected to produce the initial net operating income (NOI) of…
A: The ability for investors to compare values over time makes present value crucial.iGiven a certain…
Q: What is the future value of your house after 30 years? Note. Use formula FV=PV(+r)" to find this…
A: Given Present value PV = 831,111.59 n= 30 years Annual growth rate for 30 years is 5% r = 5% We…
Q: SRA S₁ *** P₁ AD₂ P₂ AD₁ Y P 0 P₂ 0 LRAS, Y, Y₂ Panel (a) Y, Y, Panel (c) SRA S₁ AD, P SRA S₂ 0 P…
A:
Q: accepts deposit from the public and lend out this money to interest earning investment projects
A: There must be some monetary authority which is available to the public for the deposition of the…
Q: Define the term true IRR?
A: The internal rate of return (IRR) represents the interest rate that reduces the net present value…
Q: The tree in Karura forest grow such that the volume of timber at time t can be represented as 900t +…
A: Volume of timber at time 't' is given by the following function: Q(t) = 900t + 50t2 + 60t3 + 7t4…
Q: Given problem: What is the annual rate of interest if 228.92 is earned in 7 months on an investment…
A: Interest rate = ? interest = 228.92 Investment = 17,266.77 Time period = 7 months
Q: Estimate an appropriate market’s required yield to maturity for each of the bond issues using the…
A: Based on Bartleby's policy, I can answer only the first question. I request you to please post the…
Q: 1. What is the value of ROR (i*) for the following equation? 0 = -20,000 + (29,000 21,000) (P/A,…
A: Given investment = 20000 Net cashflow = 29000 – 21000 = 8000 Time = 4 years
Q: fits a finite distributed lag model. Annual data are collected and the estimated model is: 9GDP, =…
A: The gross domestic product (GDP) is a sum total of all services and goods produced/made in a…
Q: Ms Lee deposited cash amounting RM5,000 in her Islamic term investment account. Demonstrate how will…
A: Money supply refers to the money stock held by public during a a year . And there are various…
Q: A. Solve step by step B. What type of equation is this 10X²-12 >0
A: Answer is given below
Q: Suppose rn =1.5, nT=2, ay 1 and art =0.5. Suppose Y = 510b, Y*=500b and n=3%. What is the…
A: Taylor rule is an econometric identity which helps central banks to understand the changes which are…
Q: Evaluate the required value based on the given standard notation BD75,000 (F/P, 8%, 10) О А. BD…
A: The value of (F/P,8%,10) will be 2.158925. The required value will be given below = BD75,000…
Q: Suppose you invest GH¢2000 at the end of each year of the next five years compounded at 10%. How…
A:
Q: Interest rates are likely to vary in an economic analysis. Solve, a. When the planning horizon…
A: A rate of interest is the expense of getting cash. Or then again, on the opposite side of the coin,…
Q: The DCFs is the net-present-worth (or net-present-value) (NPW or NPV) method.True or false?
A: Answer - Net present value method (NPV) - It is the method which shows the difference between…
Q: (b) Find the time path of capital (K, t), given the following rates of net investment flow…
A: Time path of capital growth is given by - K(t) = K(t -1) (1 - depreciation rate ) + I(t)
Q: Horizon value question A project involved initial construction costs of $1.75 million. After 15…
A: Net present value (NPV) can be calculated by using the following formula.
Q: 4. (If P = 2 and Y= 1000, then which of the following pairs of values are possible? A. M = $500, V =…
A: From the quantity theory of money The equation of exchange is MV= PY Where M is money supply, V is…
Q: Machine cost = $15,000; Life = 8 years; salvage value = $3000. What minimum cash return would the…
A: Given, Initial Investment= $15,000 Desired Rate of Return= 8% Time= 8 years Rate of Accumulation= 5%…
Q: Estimate the price impact of a 50-basis point interest rate change using a linear approximation of a…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: 5. What are some of the things you can conclude from these computations?
A: Based on the values provided,
Q: find the TP and AP unit TP AP MP 1 20 20 0 2 32 16 12 3 54 18 22 4 26
A: The table is completed as follows.
Q: Does the MARR represent a market interest rate?
A: Answer: Introduction: Market interest rate: It refers to the rate that prevails in the market on…
Q: the potential percent gain or loss in changes of variable is taken into account by A. Break even…
A: Answer Explanation As Present worth is an equivalence method which analysis is done that in which a…
Q: If real income grows at approximately 6% per year, the number of years it will take for real income…
A: Rule of Doubling The rule of 72 determines in how much time period an investment will double at a…
Q: Suppose that the net investment flow is described by the equation I(t) = 3t/2 and that %3D the…
A: Given: Rate of investment I(t)=3 t1/2
Q: (a) Find the time path of capital K(t) given the following rates of net investment flow functions…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: What is the IRR for a Nonsimple Project: Mixed Investment?
A: The IRR for a Mixed investment is calculated as MARR.
Q: Explain how differing assumptions about capitalization rate, reversion value, and highest and best…
A:
Q: Q2. Consider the cash flow given in the following table. What is the value of the missing cash…
A: Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and…
Q: (a) Find the time path of capital K(t) given the following rates of net investment flow functions…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Before recommending any of these bond issues to your grandfather you perform a number of analyses.…
A: "Discount rates" (DR) are the rate of interest(ROI) which is charged by the central bank for loans…
Q: A person considers an inversion that saves 100,000 a year. annual taxes equal to 2% of its value per…
A: *Hi there , as you have posted multiple question as per our guidelines we will only solve the first…
Q: Illustrate how a project's profitability changes under an inflationary economy?
A: The rise in the price of services and commodities over time is said as inflation.
Q: 1. What is the value of ROR (i*) for the following equation? 0 = -20,000 + (29,000 - 21,000) (P/A,…
A: Let us convert above equation into formula based one - 0 = -20,000 + (80000)*1 -(1+i)-4i As , (P/A…
Q: If the real growth of money interest rate for the past year has been 4% and the general inflation…
A: Given: Nominal rate = 4% Inflation rate = 2.5%
Q: Discuss the difference between an entreprenuer and non entreprenuer
A: Entrepreneurship is seen as a kind of challenge that goes above what is usually associated with…
Step by step
Solved in 2 steps with 1 images
- Pareto eliminated psychology from economics:a. by defining utility as ordinal, not cardinal utilityb. searching for secondary qualities of thingsc. defined rationality as consumer behavior only after they have bought something several timesd. by accepting revealed preference.Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of J MUj Units of K MUk 1 56 1 32 2 48 2 28 3 32 3 24 4 24 4 20 5 20 5 12 6 16 6 10 7 12 7 8 What level of total utility is realized from the equilibrium combination of J and K, if the consumer has a money income of $28 and the prices of J and K are $8 and $4, respectively? Multiple Choice a. 172 utils b. 168 utils c. 188 utils d. 72 utils Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of J MUj Units of K MUk 1 56 1 32 2 48 2 28 3 32 3 24 4 24 4 20 5 20 5 12 6 16 6 10 7 12 7 8 If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing Multiple Choice 3 units of J and 7 units of K. 5 units of J and 5 units of K. 4 units of J and 5 units of K. 6 units of J and 3 units of K.
- If you had a vacation budget of $3000 to take vacation(s) this fall, use utility analysis theory to predict which vacation that you would participate in this fall. You need to explain why you would take this vacation instead of another one that you were considering. Assume that you must take the vacation or all life on Earth would perish. I made that last assumption to prevent you from saying that you would just spend it to pay down bills or put it in savings. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.True / False questions Marginal utility curve is a graph shows all the combinations of goods and services that can be produced if all of society’s resources are used efficiently…… Indifference curve is a set of points, each representing a combination of some amount of good X and some amount of good Y, that all yield the same amount of total utility…..True or false Law of diminishing margnal utility law states that utility derived from each successive consumption will keep falling.
- What assumptions are necessary for supposing that individual preferences can be inferred and valued from the choices that individuals make?give a reasonA consumer consumes two goods and her utility is form by Cobb-Douglas utility function. Her MRS is 0.9 * (q2/q1) Using these information find Marginal utility levels of first amd second goodsSuppose that a consumer has a choicebetween two goods, X and Y. If the price of X is $2 and the priceof Y is $3, how much of X and Y does the consumer purchaseper period, given an income of $17 per period? Use the followinginformation about marginal utility:Units MUX MUY1 10 52 8 43 2 34 2 25 1 2
- T/F Explain Utility numbers cannot be negative since higher utility means a con- sumer is better off.Moe and Curly both face the same budget line for consumption and leisure. At every possible consumption-leisure bundle on the budget line, Curly always requires marginally more leisure than does Moe in order to be equally happy when asked to forego a dollar of consumption. Using a standard budget line, graph the indifference curves for Moe and Curly that shows the optimal consumption-leisure bundle for both people. Which person optimally chooses more consumption? Which feature of indifference curves guarantees this result?Khan lives in a world with two consumption goods x and y. Her utility function is U (x, y) = √x² + y². a. If px = $3,py = $4, and her income, I, is equal to $50, what will be the quantities of x and y that Maya should buy to maximize her utility? Make sure that you write out the Lagrangian and the first-order conditions. (Hint: It may be easier to maximize U² than U). Have you found a true maximum? Explain your answer.
