Answer:
rise, fall
Explanation:
In the case when the subsitution effect with respect to the real rate of interest should be saved and more than the income effect on the real rate of interest so if there is an increased in the real rate of interest so there is an increase in the consumption also there is the fall in the savings
Also, if there is a more income effect, the consumption should rise and the savings would decline
Therefore the rise and fall should be considered to fill the blanks
Answer:
A
Explanation:
Optimization using total value calculates the total value of each feasible option and then picks the option with the highest total value.
Optimization using marginal analysis calculates the change in total value when a person switches from one feasible option to another, and the uses these marginal comparisons to choose the option with the highest total value.
Both gives identical answers.
Optimization can be implemented using many different techniques.
One of it, is Total value total benefit - total cost (net benefit).
It translate all cost and benefits into common units, like dollar per month.
Calculate the total net benefit of each alternative.
Pick the alternative with the highest net benefit.
The answer is <span>Factory owners benefited greatly, while conditions for workers were poor.
During the Industrial Revolution, capitalists were focused on getting more profit. They actually have poor management with worker benefits. Workers work long hours and receive insufficient pay for all their work. Their condition moved them to form Unions and held strikes for decent salary and benefits.
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Answer:
Check the following calculations
Explanation:
All-Equity Plan:
Number of shares = 15,000
Plan I:
Number of shares = 12,700
Value of debt = $109,250
Price per share = Value of debt / (Number of shares under All-Equity Plan - Number of shares under Plan I)
Price per share = $109,250 / (15,000 - 12,700)
Price per share = $109,250 / 2,300
Price per share = $47.50
Plan II:
Number of shares = 9,800
Value of debt = $247,000
Price per share = Value of debt / (Number of shares under All-Equity Plan - Number of shares under Plan II)
Price per share = $247,000 / (15,000 - 9,800)
Price per share = $247,000 / 5,200
Price per share = $47.50
Answer: 16.33%
Explanation:
With the details given, the best method of Calculating the expected rate of return is the Capital Asset Pricing Model (CAPM).
The formula is,
Er = Rf + b(Rm - Rf)
Where,
Er is expected return
Rf is the risk free rate
b is beta
Rm - Rf is the Market Premium
Er = 3.87% + 1.38(9.03)
= 3.87% + 12.4614%
= 16.33%
The model accounts for inflation by including the risk free rate which is already adjusted for inflation.
