answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dennis_Churaev [7]
2 years ago
10

A large open economy has desired national saving of Sd = 1200 + 1000rw, and desired national investment of Id = 1000 - 500rw. Th

e foreign economy has desired national saving of = 1300 + 1000rw, and desired national investment of = 1800 - 500rw. The equilibrium world real interest rate equal to:________.
Business
1 answer:
exis [7]2 years ago
7 0

Answer: 10%

Explanation:

The Equilibrium real interest rate would be the interest rate that equates the Desired savings to the desired investment for both the National and foreign economy.

Desired national saving + Foreign desired national saving = Desired national investment + Foreign desired national investment

1,200 + 1,000rw + 1,300 + 1,000rw = (1,000 - 500rw) + (1,800 - 500rw)

2,500 + 2,000rw = 2,800 - 1,000rw

2,000rw + 1,000rw = 2,800 - 2,500

3,000rw = 300

rw = 0.1

rw = 10%

You might be interested in
The key characteristic of organizational culture that addresses the degree to which people exhibit integrity and high ethical st
attashe74 [19]

Answer:

Integrity

Explanation:

Organizational culture consists of shared assumptions, values, and beliefs, which governs how people behave in organizations. These values determines how people behave in an organizational settings and there are different characteristics ranging from innovation, teamwork, stability etc. The main one that addresses degree people exhibit integrity and high ethical standards is Integrity.

8 0
2 years ago
Q: Lisa sells 10 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $70. In
bija089 [108]

Answer:

Accounting Profit = $100

Economic profit = $80

Explanation:

Given that

Sales = 10

Cost = $10

The calculation of accounting profit and economic profit is shown below:-

Accounting Profit = Sales × Costs

= 10 × $10

= $100

For calculating accounting profit we simply multiply sales with costs.

Economic profit = Accounting profit - Opportunity cost

= $100 - 2 × $10

= $80

For calculating the economic profit we simply deduct the opportunity cost from accounting profit.

5 0
2 years ago
You have two job offers. Alpha Firm offers a salary of $40,000 per year with no bonuses, while Beta Firmoffers a base salary of
ozzi

Answer:

$40,000 per year; $37,500 per year; $40,000.

Explanation:

From the question above, we are given the following parameters; Alpha Firm offers a salary = $40,000 per year + no bonuses, "Beta Firm offers a base salary of $35,000 per year with a 25% chance that you will receive an annual bonus of $10,000".

So, to answer the question,the expected salary of working for Alpha Firm will surely be = $40,000 per year.

At Beta Firm the expected salary is = $35,000 + 0.25($10,000) = $37,500.

Therefore, if I was risk neutral, the expected value of the year bonus offered by Beta Firm would need to be at least $40,000 for me not to be indifferent to the choice between the two options.

4 0
1 year ago
Lloyd is considering getting a credit card and using it instead of cash. Which of these is a good reason for him to do so?
Anni [7]

Answer:D. It will be easier for Lloyd to make online bill payments with a credit card.

Explanation:

6 0
2 years ago
In finance, we separate operating decisions from financing decisions and thus exclude ________ as a part of operating income fro
Kobotan [32]

Answer:

A) interest expense

Explanation:

Operating income or EBIT (earnings before interest and taxes) are calculated considering that the company is financed only through equity. The same applies when we are evaluating different projects, since we must be able to determine if the company or project can yield a profit without considering who paid for its operations.

The same applies for taxes, since it doesn't matter how high or low taxes are, if the company doesn't make a profit, then it will pay none.

5 0
2 years ago
Other questions:
  • A hospital benchmarked against a ferrari racing team in an effort to:
    11·1 answer
  • Andreas is a political consultant with his own firm. he travels the country and provides campaign advice for political candidate
    12·1 answer
  • To lease a new car, you must make a down payment when you sign the lease, then pay $199 per month. six months after signing his
    15·1 answer
  • Nikita wants to apply for student aid to fund her college education. Arrange the steps involved in Nikita’s application for fina
    8·2 answers
  • In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in a month. The welder is
    14·1 answer
  • The owner of Chips etc. produces two kinds of chips: lime (L) and vinegar (V). He has a limited amount of the three ingredients
    15·1 answer
  • When Samantha, manager at ABC International, seeks and receives information from both web and industry journals, she is acting a
    5·1 answer
  • Westerlands and Crownlands are two countries that trade with each other and no other countries. Assume that Westerlands’ currenc
    8·1 answer
  • Suppose that the market for athletic shoes is initially in equilibrium at point A. Further suppose the demand for athletic shoes
    6·1 answer
  • Workers typically get dirty if they work at a job site for O both the Construction and Design pathways. both the Construction an
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!