PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Question
Chapter 9, Problem 1P
(a)
To determine
Construct C’s
(b)
To determine
Determine the changes in assets, liabilities, and wealth when the baseball card becomes worthless.
(c)
To determine
Determine the changes in assets, liabilities, and wealth when C pays off his credit card balance.
(d)
To determine
Determine the changes in assets, liabilities, and wealth when C pays off his credit card balance using the checking account.
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Karrie is a golf pro, and after she paid taxes, her income from golf and her interest from financial assets totalled $2,500,000 in 2019. At the beginning of 2019, she owned $1,100,000 worth of financial assets. At the end of 2019, Karrie's financial assets were worth $1,300,000. How much did Karrie save during 2019?
31. An analyst is considering the purchase of a Government of Canada bond that will pay its face value of $10 000 in one year's time, but pay no direct interest. The market interest rate is 4% and the bond is being offered for sale at a price of $9400. The analyst should recommend
purchasing the bond because the purchase price is more than its present value and is therefore profitable.
not purchasing the bond because the buyer could earn an additional $376 by investing the $9400 elsewhere.
not purchasing the bond because the purchase price is less than its present value.
purchasing the bond because the purchase price is less than its present value and is therefore profitable.
not purchasing the bond because the buyer could earn an additional $224 by investing the $9400 elsewhere.
Suppose a person has a total credit card debt of $1,380 that has a 15 % yearly interest rate. This person also has a savings account with $3,000
that pays 3 % interest per year. Despite the net loss, the person keeps both.
Calculate how many times the person appreciates the $1 of savings more than $1 of credit card debt if the person relates similarly to both values of
percent paid and received. Enter your answer in the box below and round to two decimal places if necessary.
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Chapter 9 Solutions
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
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