Suppose the economy is closed & consumption is 6,500 taxes are 1,500 and government purchases are 2,000. If national saving amounts to 1,000 then what is GDP?
Answer:
9,500
Explanation:
Cosumption is 6500
Taxes is 1500
Government purchases is 2000
National savings is 1000
Therefore the GDP can be calculated as follows
= savings + consumption + purchases
=1,000 + 6,500 + 2,000
= 9,500
Hence the GDP is 9,500
1. Critical thinking requires setting high standards for yourself. True or false
Answer:
True
Explanation:
You own a stock portfolio invested 24 percent in Stock Q, 21 percent in Stock R, 44 percent in Stock S, and 11 percent in Stock T. The betas for these four stocks are .86, .92, 1.32, and 1.77, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer: 1.18
Explanation:
Portfolio beta is a weighted average of the individual stock betas in the portfolio.
Portfolio beta = (24% * 0.86) + (21% * 0.92) + (44% * 1.32) + (11% * 1.77)
= 0.2064 + 0.1932 + 0.5808 + 0.1947
= 1.1751
= 1.18
One of the basic relationships in bond priceing is that, other things held constant, for a given change in the required rate of return (i.e., the yield to maturity), the __________the time to maturity, the __________ the change in price.
Answer:
Longer, larger
Explanation:
bond is a kind or form of loan- debt security obligating a borrower to pay a lender principal and interest.
A basic relationships in bond priceing is that, other things held constant, for a given change in the required rate of return (i.e., the yield to maturity), the longer the time to maturity, the larger the change in price. Bond prices
are determined and change in them occurs due to Supply and Demand.
To Investor, the higher the price, more tempting it is to sell.
Three important forms of long-term (capital) expenditures are
Answer:
Explanation:
Expenditure made to reduce costs; Expenditure made to increase revenue; Expenditure which is justified on non-economic grounds.
The real GDP of Country A grew by only 1% from 2011 to 2013, while the real GDP of Country B grew by 5% during that same time span. 1. Country B has a very high quality of life. 2. Country A has a modestly high quality of life. 3. Country A's economy has been in a period of contraction. 4. Country A has a high real GDP. 5. Country B will eventually have a higher real GDP than Country A if the economy of each country continues to grow this way.
Answer:
5. Country B will eventually have a higher real GDP than Country A if the economy of each country continues to grow this way.
Explanation:
The full form of GDP is Gross Domestic Product. It is the amount of the total products or services that a country produces in the financial year. The measure of the GDP determines the national income and the economy of a particular country.
In the context, it is mentioned that the real GDP as measured from year 2011 to the year 2013 by country A grew only 1 percent and that of country B grew by 5 percent during the same year. Hence we can conclude that country B will have higher GDP when compared to the real GDP of country A when both the country's economy grow in the same way.
