Many workers hold large amounts of stock issued by the firms at which they work. Why do you suppose companies encourage this behavior? Why might a person not want to hold stock in the company where he works?

Q: What is a capital gain, and what role does it play in the arbitrage equation?

A: Arbitrage Equation The arbitrage equation a very important tool in economic analysis that helps…

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A: According to the given question While analysing in general the economic problems the economics uses…

Q: How are financial firms able to make profits?  Under what circumstances are their profits limited?

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Q: Looking at business fixed investment, elaborate on why investment is negatively related to the…

A: Investments are negatively related rate of interest.

Q: Calculate the change in stock given that opening stock is $60 million and closing stock is $77…

A: The data presented in the question above is:- Opening stock = $60 million Closing stock = $77…

Q: When economists say “investment,” they are referring to financial investments, which are purely…

A: The bonds and stocks are the financial asset that gives the return to the investors. It is a way of…

Q: Assume that a national restaurant chain called BBQ builds 15 new restaurants at a cost of $1 million…

A: Here we calculate the following terms by using the given details and fill the blanks , so the…

Q: Find the golden rule level of capital stock

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Q: "Capital is a flow and income is a stock" True/False

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Q: Tom buys a $5000 bond from XYZ Company. XYZ Company uses the $5000 to purchase a new piece of…

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Q: Soon after his election in 1992, President Clinton proposed reducing government spending and…

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Q: Which of the following represents stock variables?  (a) Wealth, saving and unemployment; (b) Gold…

A: The stock variables are those variables which measure at a specific point of time. For example, the…

Q: Explain how changes in interest rates and rates of return on various investment options will affect…

A: Explain how changes in interest rates and rates of return on various investment options will affect…

Q: When you invest your money in the stock Market, the original investment is called the…

A: When an individual earns income by serving as labor or employee, he has two ways to use that income,…

Q: Suppose there is a decrease in the demand for investment, and increase in saving in an economy. Show…

A: An investment curve is downward sloping due to the negative relationship between interest rate and…

Q: Investment is driven by all of the following except, the buying of stocks and bonds A on the open…

A: Investment refers to the economic activity in which people use their money in productive activities…

Q: A company has announced a profit, but why is the price of stock still falling? Is the market…

A: The degree to which market prices represent all accessible, relevant information is referred to as…

Q: Explain what happens to savings, investment and the real interest rate in an economy if the…

A: Government expenditure is basically the amount of money that is spent by the government on…

Q: o macroeconomists, investment is mainly when firms : a.  sell stocks and bonds to the public b.…

A: Investment is mainly when a firm increases its capital assets with the goal of earning income from…

Q: Briefly explain the yearly rate-of-return method that policyowners can use to determine the rate of…

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Q: What are the sources of money for company investments? The sale of stocks The sale of bonds Loans…

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Q: "In the financial sector and in the economy, commercial banks play an important part. As a core…

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Q: Suppose that stock prices were to fall by 10 percent in the stock market. All else equal, would the…

A: The economy's gross domestic product is made of consumer spending, private sector spending, net…

Q: The table below shows levels of employment, output, consumption, and saving for a private closed…

A: Since nothing is mentioned, we will solve the first three subparts only. Please resubmit the…

Q: What was the great depression, what triggered it, how long did it last, and how did the concepts of…

A: Great Depression The Great Depression was the worst economic downturn in the history of the…

Q: Find the value of the change in the stock if the Closing stock is 122 and the Opening stock is 102?…

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Q: What actions might a stock investor take during times of economic expansion? In other words, how…

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Q: Compare and contrast stock market activity in October 1929, October 1987 and late summer 1998. What…

A: The stock market crash of 1929 was the collapse of the stock prices, for four consecutive ways. It…

Q: Suppose that you have bought a total of 3200 shares of stock of a particular company. You bought…

A: Total shares = 3200       1200 shares of stock at $18 per share      800 shares of stock at $10…

Q: Explain the role of interest rates in allocating capital, modulating R&D spending, and helping…

A: An interest rate is the percentage of principal being charged by the lender for use of its money.…

Q: What group of people benefits from a higher interest rate? Explain how they benefit

A: Interest is the opportunity cost of holding money.

Q: Darrell owns a large corporation that is building a new shopping mall in Winston- Salem, North…

A: A firm who is looking for the funds lies the demand side of the market and who is looking for giving…

Q: The interest rate is determined by... a) Financial markets and do not affect the market for goods…

A: Interest rate: - it is the percentage charge on the principal amount by a lender to a borrower.…

Q: Illustrate the investment-pool concept, with an example?

A: Investment pools are financial arrangements (excluding pension funds) that consolidate Other…

Q: Explain three types of capital receipts in an given economy?

A: In simple words we can say that the capital receipts are known as that receipts in which the…

Q: Corporations often offer ________ to investors as some tangible evidence that the corporation is…

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: Explain Three ways that a reduced rate of interest influences real capital investment.

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Q: atural Language Processing Can you give me 300-500 words on why is it effective to predict stock…

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Q: If a large corporation such as Walmart makes decisions that dramatically affect their stock prices,…

A: Economics is divided into two branches- microeconomics and macroeconomics. Microeconomics studies…