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pickupchik [31]
1 year 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:
AlekseyPX1 year 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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mith Services, Inc., was a trucking company established in 2000 and owned by Tony Smith as the sole shareholder. Smith Services,
Evgesh-ka [11]

Answer:

Answers for related statements are given below.

Explanation:

1. Corporation

2.  Is

3.  Smith services

4.  Did

5. Was and was not

6. Was

7. Limited

8.  Their investment in the corporation

9.   Lost

lo. Might

11. Pierce the corporate veil

12.Abused and indistinguishable

13.Does not appear

14.Does not appear and does not appear

15.Is no and is no

16. Should not

7 0
2 years ago
Read 2 more answers
True or false the risk premium is primarily concerned with business risk, financial risk, and inflation risk.
Nikitich [7]
The answer is true .
7 0
2 years ago
The following information relates to the manufacturing operations of the JNR Printing Company for the year: Beginning Ending Raw
grin007 [14]

Answer: $117,000

Explanation:

So we are to calculate the Raw Materials purchased during the year.

Logically speaking the following should hold,

Raw materials purchased during the year + beginning raw materials = ending Raw materials + Raw materials used

Agreeing on that and rearranging the formula we will have,

Raw Material purchased during the year = Raw Material used during the year + Ending Raw Material Inventory - Opening Raw Material Inventory

Slotting in the figures we will then have,

Raw Material purchased during the year = 114,000 + 56,000 - 53,000

= $117,000

Raw materials purchased during the year amount to $117,000.

8 0
2 years ago
Jazmine and Estephanie work for a company where employees have a high degree of autonomy, flexibility and equality. Most of them
taurus [48]

Answer:

Fragmented organizational culture

Explanation:

Jazmine and Estaphanie work in a fragmented organizational culture. This kind of culture refers to the employees who are not connected to each other but are connected to their work. They have friendly relations with people who do not work with them.

This similar concept is also explained in the question where people participate in activities outside of work and rarely make any friends at work.

I hope the answer is helpful.

Thanks for asking.

6 0
1 year ago
Abburi Company's manufacturing overhead is 60% of its total conversion costs. If direct labor is $52,000 and if direct materials
satela [25.4K]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Abburi Company's manufacturing overhead is 60% of its total conversion costs. Direct labor is $52,000.

We know that the conversion cost formula is:

Conversion cost= direct labor + manufacturing overhead

We need to use a rule of three:

60% = 52,000

100% = x

x= 1*52,000/0.6= 86,667

Now we can calculate overhead:

86,667= 52,000 + overhead

overhead= 34,667

4 0
2 years ago
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