True/False  If the real rate of return on investment is higher in the US than in Canada, capital will tend to flow out of the US and into Canada.

Q: explain whether the given statement is true, false or uncertain. Start your answer by selecting one…

A: Savings are treated as leakages in the economy where as investments are treated as injections for…

Q: ears ago a house was purchased for P5M. If it is sold today for P10M, what is the rate of…

A: Purchase price = 5 Million Selling price = 10 Million Time = 10 years

Q: Gross domestic capital formation is always greater than gross fixed capital formation is this true?

A: Generally the given question Gross fixed capital formation which is also known as investment is…

Q: shift inwards AN shift outwards move-along upwards A rise in the interest rate would cause v…

A: Economics as a subject is used to study and plan the allocation of scarce resources among humans…

Q: Which of the following is not economic investment?       The purchase of a drill press by the…

A: Construction of a small heating and air conditioning repair facility is an economic investment.…

Q: 39

A: Answer Explanation: The investment demand slopes downward and correct due to lower accurate interest…

Q: Assume that the rate of investment is described by the function I(t) 12 t/3 where I(t) = dK and K…

A: (i) Given:  Rate of investment I(t)=12 t1/3 I(t)= dk/dt K(0)=100 (i) Capital Stock K(t) is the…

Q: W=technology and r is standard share parameter of Cobb-Douglas production. Y = W . K^r . L^1-r a.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: investmenthet equation takes the i^(p )= 50 + 0.2y – 2000 i. calculate planned investment spending…

A: Planed investment (PI) can be calculated by using the following equation.

Q: Using appropriate diagram(s), discuss Fischer’s theory as it relates to determination of optimal…

A: Fisher's theory focuses on two main points:(1) There is no capital stock because all capital is used…

Q: Define and explain the internal rate of return on a new investment?

A: Internal rate of return or IRR is a measure in economics of  capital budgeting parlance and…

Q: nvestment can be a form of:    a. induced or autonomous   b.private investment or public investment…

A: Investment relates to the formation of capital goods and is defined as the value of fixed capital…

Q: factors that contribute to the successful investment

A: Investment means Balancing risks, between reward and opportunity cost - knowing the right balance…

Q: What would $1 in 1966 be worth today in 2021?      A) $ 7.71       B) $ 7.92       C) $ 8.07…

A: The consumer price index (CPI) shows the price level in the economy. The change in consumer price…

Q: When is a project not a pure investment project?

A: Investment: When a fund is used to earn additional income or fund is used to grow its value then…

Q: Suppose the U.S. has an investment opportunity which costs $200 which will increase output from 100…

A: The term "marginal productivity" refers to the change in output (Y) as a function of the amount of…

Q: Define the term Return on Invested Capital?

A: The amount of money which is invested in the business to achieve its goal is called investment…

Q: You took an amazing class at the U that changed your life, so now you are going to invest for your…

A: Given:Real interest rate=11%Tax bracket:Federal=25%State=5%

Q: Jessy made a capital gain of $33,000 on the sale of her shares in a companyand a $5,000 capital gain…

A: A capital gain is the expansion in a capital resource's worth and is acknowledged when the resource…

Q: Production function) Y = 4Vk Investment function) I = 0.1Y Depreciation function) D = .02K Calculate…

A: Solow's growth model is designed to show how growth in the capital stock, growth in the labor force,…

Q: n increase in interest rates will increase economic investment.     1) True   2) False     b) The…

A: Answer a) Interest rates are fluctuated by the Federal bank to stabilize economic growth and…

Q: When should the Investment in physical assets be capitalized?

A: Answer -  Capitalization - The meaning of capitalization that investing the capital in terms of…

Q: What role does depreciation rate and interest rate play in investment decisions?

A: The investment is affected by both the depreciation rate and interest rate. These factors affect the…

Q: $ 2.9 (b) How large is its dividend? Instructions: Enter your response rounded to two decimal…

A: The implied rate is an interest rate equal to the difference between the spot rate and the forward…

Q: The saving rate (gross domestic saving as a % of GDP) in Australia, a small open economy, was 15% in…

A: The savings are the portion of the income which is not spent on consumption. The savings are thus…

Q: Imagine an investor who has money to invest and two alternative investment possibilities, asset A or…

A: Formula: Expected rate of return =( Expected value - Current value) / (Current value) * 100

Q: What is the number of periods that a capital of $500 invested at a rate of 10% will rise to $3.5007

A: Future value [FV] = 35007 Present value [PV] = 500 Interest rate [r] = 10% Number of periods [n] =…

Q: An economy is currently at it's steady state. Their depreciation rate is 10.5% and their capital…

A: Since you have posted multiple question, we will solve the first one for you. If you want any…

Q: You believe that a corporation's dividends will grow 5 percent on average into the future. The…

A: The information given is:- Dividend paid per share = $5 Current price of stock = $75 Average growth…

Q: Consider the results in Table 3. What is the predicted home size of a household composed of 5…

A: The predicted home size of a household composed of 5 members, renting, and with annual net income…

Q: Does the Broader Diversification Increase Expected Return?

A: Diversification is investing money in a wide range of investments, not in a single investment. It is…

Q: Refer to the figure below. +16 +12 +8 Consumption Investment is more volatile than consumption.…

A: Introduction In the above diagram consumption and investment spending has given from 2000 - 08. a)…

Q: explain the effects of the risk of investment projects on the capital investment decisions of…

A: Investment projects are subjected to various forms of risk that can impact the performance expected…

Q: qualifier investment vs compete investment?

A: In an economy, invested is classified into different forms based on their characteristics such as…

Q: If long-term property rights of an oil well cannot be guaranteed, how will the extraction rate from…

A: In the world, almost country have  mineral resources belong to the government .this include all…

Q: The National Development Plan (NDP) looks at building economic сараcity. Explain, with reference to…

A: The National Development Plan (NDP) was adopted by the South African government in the year 2012 as…

Q: Introduction to Sustainability and Natural Capital

A: Economics refers to the studies of how individuals interact with value; mainly, the production of…

Q: Which type of project is called a pure investment project?

A: There are two different types of investment projects - pure investment project and mixed investment…

Q: The above schedule indicates that if the real interest rate is 6 percent, then: Select one: a. $25…

A: Investment: It refers to the money which is invested by the government or private individuals. The…

Q: Saving = a. disposable income minus taxes b. income minus taxes c. 1 – MPC d. disposable income…

A: National income is the total market value of all final goods and services that are produced in an…