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pickupchik [31]
2 years ago
7

Suppose that the investment demand curve in a certain economy is such that investment declines by $130 billion for every 1 perce

ntage point increase in the real interest rate. Also, suppose that the investment demand curve shifts rightward by $190 billion at each real interest rate for every 1 percentage point increase in the expected rate of return from investment. If stimulus spending (an expansionary fiscal policy) by government increases the real interest rate by 2 percentage points, but also raises the expected rate of return on investment by 1 percentage point, how much investment, if any, will be crowded out?
Business
1 answer:
AlekseyPX2 years ago
8 0

Answer:

50 billion

Explanation:

Investment declines by $130 billion for every 1 percentage point increase in the real interest rate.

Decline in Investment because of higher real interest rate:

= 2 × 100

= $200 billion

Increase in Investment because of higher expected rate of return:

= 1 × 150

= 150 billion

Total decline in investment:

= -200 + 150

= 50 billion

Therefore, 50 billion of investment will be crowding out.

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Explain how each of the five pillars of sustainable change could be applied to sustain the learning organization environment of
Vanyuwa [196]

Answer:

Following are the five pillars of sustainable change could be applied to sustain the learning organization environment of the company:

1) Leadership

2) Strategy

3) Culture

4) Structure

5) System

Explanation:

1) Leadership

Leadership provides the way forward for sustainable change i.e. they show the right direction to their employees . They will develop strategies to keep the momentum going within the learning environment that has now been created. Leadership will coach and mentor individuals, teams, and departments to keep the new systems in alignment and working well together.

2) Strategy

By strategizing means to get positioned itself as a market leader or more customer centric . In order to maintain the competitive edge, development of new learning organizational structure to make good use of all employee knowledge for changes in the market and especially for efficiencies and continuous improvements in operations.

3) Culture

Culture will include the attitude of open communication, a willingness to always be open minded, an encouragement for create thinking and sharing new ideas or conflict, and to support the value of lessons learned from mistakes. It will set the tone for the importance of working together toward a common goal, and will be dedicated to recognizing accomplishments to inspire innovation.

4) Structure

Deciding about the best organizational structure, say the flat one. This will allow employees to communicate freely, share knowledge in real time and work and problem solve cross-functionally. Since the company promotes culture that encourages creative thinking, the employees are confident their talents are being used at the highest capacity to support the company’s drive for continuous improvement.

5) System

As part of the change management project, reliance on new technologies and system is increasing, and using of expert and decision making system, stronger controls can be in placed which would be asset to the learning organization.

5 0
2 years ago
Your Green Investment Tips subscription is about to expire. You plan to subscribe to the magazine for the rest of your life, and
pentagon [3]

Answer:

The answer is a. 14.33.

Explanation:

We apply the net present value (NPV) methodology to approach the two options.

+ The lifetime subscription's npv = $(850)

+ The annual subscription's npv = - 85 - [ 85/6% * [ 1 - 1.06^(-n) ], with n is the number of years the subscriber still lives.

To make a lifetime subscription a better buy, the NPV of this option should be higher than the NPV of annual subscription or:

85 + [ 85/6% * [ 1 - 1.06^(-n) ] > 850 <=> 1 - 1.06^(-n) > 0.54 <=> 1.06^(-n) < 0.46 <=> -n < -13.33 <=> n > 13.33.

So, the subscriber should live more than 14.33 years ( 13.33 + 1 years for another next year subscription) to make the lifetime subscription a better choice.

So, a is the correct choice.

4 0
2 years ago
Shawna would like to explore a career that would allow her to work outdoors with natural resources. Which two careers would be t
Anni [7]

Answer:

The only two jobs that deal with natural resources are:

  1. oil rig driller
  2. wind turbine engineer

Oil rig drillers work in the ocean completely surrounded by water, or maybe other oil rigs but they are never too close.

Wind turbine engineers work on open spaces, surrounded by very few things other than wind turbines. Wind turbines are HUGE and they are usually located on very isolated places.

5 0
2 years ago
Which statement below best captures the overall point and focus of the New York Times article, Document 3?
Artemon [7]

Answer:

Correct Answer:

C) The news story marks the historical event of the first black man being called up to play in the major leagues and expresses some concern over how Robinson will be treated by his major league peers.

Explanation:

<em>Option C ıs the best statement which captures the overall point and focus of the given New York Times article, Document 3.</em>

6 0
2 years ago
Jannusch Corporation makes one product. Budgeted unit sales for July, August, September, and October are 10,000, 11,600, 13,300,
yarga [219]

Answer:

Option A is Correct one.

<u>The budgeted required production for August is 11,600 units.</u>

Explanation:

Beginning inventory=(20%*11600)=2320

Add:production(balance)(11600+2660-2320)=11940 units(B).

Less:ending inventory(20%*13300)=(2660)

Sales=11600 units

8 0
2 years ago
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