We are in a world with a real interest rate of 7%. The economy of Smoothiland is hit by a temporary shock to GDP of 200 million units at time T. The population of Smoothiland have a strong preference for consumption smoothing, and Smoothiland has an open economy.
1. By how much does consumption to fall in time T+1? (in millions, round to the closes decimal).
2. How much does the country have to borrow to maintain smooth consumption? (round to the closest decimal)

Answers

Answer 1

Answer:

1. 14.28 million units

2. The country has to borrow 200 million in order to maintain smooth consumption

Explanation:

1. Real interest rate = 7%

Temporary shock to GDP(Y) at Time(T)

= 200 million

Fall of consumption (T) in time T+1 =

So,

Y= C+rY

200=C+(0.07*200)

= C + 14

C = 200/14

= 14.28

Therefore,

Consumption will fall by 14.28 million units

2. The country has to borrow 200 million in order to maintain smooth consumption


Related Questions

Income statement dataSales 6,900Cost of goods sold 6,100Balance sheet dataInventory 680Accounts receivable 300Accounts payable 460Calculate the accounts receivable period accounts payable period, inventory period and cash conversion cycle for the above firm. Use 365 days in a year, do not round intermediate calculations. Round your answers to 1 decimal placea. accounts receivable period _____daysb. account payable period _____daysc. inventory period _____daysd. cash conversion cycle __

Answers

Answer:

a. Accounts receivables period = 365 / (Credit sales/Average accounts receivables)

Accounts receivables period = 365 / (6900/300)

Accounts receivables period = 365 / 23

Accounts receivables period = 15.9 days

b. Accounts payable period = (365/(Cost of goods sold/Accounts payable)  

Accounts payable period = 365 / (6100/460)

Accounts payable period = 365 / 13.26

Accounts payable period = 27.5 days

c. Inventory period = 365 / (Cost of goods sold/Inventory)

Inventory period = 365 / (6100/680)

Inventory period = 365 / 8.97

Inventory period = 40.7 days

d. Cash conversion cycle = Accounts receivables periods + Inventory period - Accounts payable periods

Cash conversion cycle = 40.7 + 15.9 - 27.5

Cash conversion cycle = 29.1 days

Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year just ended is as follows: West East Units produced and sold 33,000 43,000 Selling price per unit $ 8 $ 15 Variable costs per unit 4 5 Direct fixed cost 51,000 113,000 Common fixed cost 43,000 43,000 Common fixed expenses have been allocated equally to each of the two divisions. Carter's segment margin for the West Division is:

Answers

Answer:

$81,000

Explanation:

Segment margin is derived by deducting all expenses that are directly traceable to the segment and it does not include corporate common expenses.

Particulars                         Amount

Contribution                       $132,000  [33,000*(8-4)]

Less: Direct fixed cost      ($51,000)

Segment Margin               $81,000

So, Carter's segment margin for the West Division is $81,000.

Which of the following statements are true concerning the predetermined overhead rate when the direct labor-hour requirement for the Deluxe model dropped from 5 hours to 2 hours?

a. The predetermined overhead rate decreases because the total estimated overhead cost increased.
b. The predetermined overhead rate decreased because the total direct labor-hours dropped.
c. The predetermined overhead rate increased because the total estimated overhead cost increased.
d. The predetermined overhead rate increased because the total direct labor-hours dropped.

Answers

Answer: The predetermined overhead rate increased because the total direct labor-hours dropped

Explanation:

The predetermined overhead rate refers to an allocation rate which is used in applying the estimated manufacturing overhead cost to the cost objects for a particular reporting period.

When there's reduction in the direct labor-hour requirement from 5 hours to 2 hours, the predetermined overhead rate increased because the total direct labor-hours dropped

The predetermined overhead rate is calculated as the total overhead cost divided by the machine hour. Therefore, if there's reduction in the direct labor hour rate, then there will be a rise in the predetermined overhead rate.

“In fact, production theory is much simpler than consumption theory because the output of a production process is generally observable, whereas the “output” of consumption (utility) is not directly observable”. Explain this statement.

Answers

Answer:

The given statement 'In fact,...observable' conveys the idea that it is comparatively convenient and simple to calculate the amount or quantity of goods that are being produced within a firm, territory, or country to determine the economic worth directly. On the other hand, estimating the amount or quantity of goods consumed by the people across a region or country is difficult and can not be observed directly. However, the latter is given more significance and determined more usually through calculating the expenditure made by the consumers depending on their choices and within their income constraints and these are the primary factors that affect the economic growth or development while the production theory lays emphasis on the maximization of profit.

Target is going to reduce its annual dividend by 10 percent a year for the next two years. After that, it will maintain a constant dividend of $2 a share. Last year, the company paid an annual dividend of $3 per share. What is the market value of this stock today if the required return is 13.7 percent

Answers

Answer: $15.55

Explanation:

The price of the stock will be the sum of the present values of the dividends and the present value of the terminal value at year 2.

Present value Dividend 1                                  Present value of Dividend 2

= (3 * (1 - 10%)) / (1 + 13.7%)                                   = (3 * (1 - 10%)²) / (1 + 13.7%)²

= $2.37467                                                           = $1.879686162

Present value of terminal value.

The dividend will be constant forever so this is a perpetuity:

Terminal value = Dividend / Required return

= 2 / 13.7%

= $14.59854

Present value = 14.59854 /  (1 + 13.7%)²

= $11.2924582814

Market value = 2.37467 + 1.879686162 + 11.2924582814

= $15.55

If the MPC is 0.75 and there are no crowding-out or accelerator effects, then an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right by a. $125 billion. b. $80 billion. c. $400 billion. d. $500 billion.

Answers

Answer:

c. $400 billion

Explanation:

Calculation to determine what an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right

First step is to calculate the GDP Multiplier

Using this formula

GDP Multiplier=1/(1-MPC)

Let plug in the formula

GDP Multiplier=1/1-0.75

GDP Multiplier=1/0.25

GDP Multiplier=4

Now let determine the shift in aggregate demand curve

Shift in aggregate demand curve=4*100 billion

Shift in aggregate demand curve= $400 billion

Therefore an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right by $400 billion

ưu điểm của mô hình APT so với mô hình capm là gì

Answers

What type of language is this can you teach me

Gross pay is: Multiple Choice Deductions withheld by an employer. Salaries after taxes are deducted. Total compensation earned by an employee before any deductions. Take-home pay. The amount of the paycheck.

Answers

Answer:

Total compensation earned by an employee before any deductions.

Explanation:

Gross pay is the total compensation earned by an employee before any deductions.

Net pay is the compensation after taxes and other deductions are removed

Runners Feet, a shoe store, orders one hundred pair of athletic shoes from Speedster Inc. Absent a contrary agreement between the parties, title will pass to Runners Feet when:_________

a. the parties sign the contract.
b. Speedster physically delivers the goods.
c. Runners pays for the goods.
d. the goods exist and are identified.

Answers

Answer: Speedster physically delivers the goods.

Explanation:

Since there's no contrary agreement between both Runners Feet and Speedster, then title will pass to Runners Feet when Speedster physically delivers the goods.

It should be noted that ownership of goods and services are transferred when goods are delivered to the customer or the buyer of the goods which is Runners Feet in this case.

Suppose a bank has $400 million in deposits and $25 million in required reserves, and it is holding no excess reserves. What is the required reserve ratio?

Answers

Answer:

the required reserve ratio is 6.25%

Explanation:

The calculation of the required reserve ratio is given below:

Required reserve ratio is

= required reserves ÷ deposits

= $25 ÷ $400

= 0.0625

= 6.25%

Hence, the required reserve ratio is 6.25%

The same is to be relevant and considered too

Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information:

Beginning work in process (30% complete) 80,000
Direct materials $80,000
Conversion cost 190,000
Total cost of beginning work in process $270,000
Number of units started 152,000
Number of units completed and transferred to finished goods ?
Ending work in process (50% complete) 68,000
Current period costs
Direct materials $180,000
Conversion cost 314,000
Total current period costs $494,000

Required:
a. Reconcile the number of physical units worked on during the period.
b. Calculate the cost per equivalent unit.

Answers

Answer:

The solution to these questions can be defined as follows:

Explanation:

For point a:

                                     [tex]Physical \ units\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Physical\ units[/tex]

[tex]Beginning\ units\ \ \ \ \ \ \ \ \ \ \ \ 80000\ \ \ \ \ \ \ \ \ \ \ \ Units\ completed \ \ \ \ \ \ \ \ \ \ \ \ 164000\\\\Units \ started\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 152000\ \ \ \ \ \ \ \ \ \ \ \ Ending\ units\ \ \ \ \ \ \ \ \ \ \ \ \ \ 68000\\\\Total\ units\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 232000\ \ \ \ \ \ \ \ \ \ \ \ Total \ units \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 232000\\\\[/tex]

For point b:

                                  [tex]Equivalent\ units[/tex]

                                 [tex]Physical\ units \ \ \ \ \ \ \ \ \ \ Direct \ materials\ \ \ \ \ \ \ \ \ Conversion[/tex] [tex]Units \ completed\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 164000\ \ \ \ \ \ \ \ \ \ \ \ 164000\ \ \ \ \ \ \ \ \ \ \ \ 164000 \\\\Ending \ inventory\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 68000\ \ \ \ \ \ \ \ \ \ \ \ 68000\ \ \ \ \ \ \ \ \ \ \ \ 34000\\\\Total \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 232000 \ \ \ \ \ \ \ \ \ \ \ \ 232000\ \ \ \ \ \ \ \ \ \ \ \ 198000[/tex]

What is finance? The study of a business's past financial decisions The study of how to allocate assets to maximize returns The process of communicating financial information about a business The social science that analyzes the production, distribution and consumption of goods and services

Answers

Answer: The study of how to allocate assets to maximize returns

Explanation:

Finance refers to the study of how to allocate assets to maximize returns. Finance refers to the study, management, and creation of money and investments.

Finance simply explains how economic agents such as the individual, company or government gets money and how such money is being used.

Mary incurred a $20,000 nonbusiness bad debt last year. She also had an $18,000 long-term capital gain last year. Her taxable income for last year was $25,000. During the current year, she unexpectedly collected $12,000 on the debt. How should Mary account for the collection

Answers

Answer: $12000 income.

Explanation:

It should be noted that non business bad debts are regarded as short term capital loss. In the question given, the $18000 long-term capital gain will have to be offset against the bad debt of $20000.

In this case, the tax benefit will be $18000, therefore $12000 will be recognized as the income.

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 60 units at $25 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 158-unit purchase at $28 per unit; the second was a 196-unit purchase at $30 per unit. During the period, it sold 270 chairs.
Required:
Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses
a. FIFO
b. LIFO
c. weighted average

Answers

Answer:

a. FIFO - cost of goods sold is $7,484 while ending inventory $4,320

b. LIFO - cost of goods sold is $7,952 while ending inventory $3,852

c. Weighted average - cost of goods sold is $7,698.26 while ending inventory $4,105.74

Explanation:

Considering the first in first out FIFO, Last in first out LIFO and weighted average methods of accounting for inventory. Given that the beginning inventory of chairs was 60 units at $25 per unit.

Given that during the year, two batch purchases were made at 58-unit purchase at $28 per unit; the second was a 196-unit purchase at $30 per unit while 270 chairs were sold.

Using FIFO,

Total number of chairs available for sale before 270 was sold

= 60 + 158 + 196

= 414 chairs

The 60 units at the beginning will be sold first, then the 158 units and the remainder from the 196 units purchased

The cost of the 270 items sold

= 60 * $25 + 158 * $28 + 52 * $30

= $7,484

Ending inventory (remaining from the 196 units purchased last)

= (196 - 52) * $30

= 144 *$30

= $4,320

Using LIFO

The cost of the 270 items sold

= 196 * $30 + 74 * $28

= $7,952

Ending inventory (remaining from the 158 units purchased and the 60 units available from the beginning)

= (60 * $25) + (158 - 74) *$28

= $1500 + $2352

= $3,852

Using weighted average

Weighted average cost of each unit

= (60 * $25 + 158 * $28 + 196 * $30)/(60 + 158 + 196)

= $11804/414

= $28.51207729

If 270 units were sold, cost of goods sold

= 270 * $28.51207729

= $7,698.26

Value of ending inventory

= (414 - 270) * $28.51207729

= $4,105.74

If Company A has a lower debt ratio than Company B, then Company A is likely to have __________ than Company B.
a. a higher level of financial risk
b. a greater ability to borrow
c. more total assets
d. less financial flexibility

Answers

Answer:

b. a greater ability to borrow

Moccasin Company manufactures a special spare part. Moccasin had an unfavorable variable overhead spending variance of $485 for the month of August. The actual variable overhead incurred for the month of August was $7,050, and the standard variable overhead rate was $5 per hour. Determine the actual direct labor hours worked in the month of August.

Answers

Answer: 1,507 hours

Explanation:

Variable overhead spending variance = Actual variable spending - Budgeted variable spending

Variable overhead spending variance = Actual variable spending - (Actual labor hours * Standard variable overhead rate)

- 485 = 7,050 - (Actual labor hours * 5)

Actual labor hours * 5 = 7,050 + 485

Actual labor hours = 7,535 / 5

= 1,507 hours

A machine with a cost of $100,000 has an estimated residual value of $8,000 and an estimated life of 7 years or 21,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method

Answers

Answer:

$20,408.16

Explanation:

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life) = 2/7

1st year= 2/7 x 100,000 = 28,571.43

book value = 100,000 - 28,571.43 = 71,428.57

2nd year = 2/7 x 71,428.57 = $20,408.16

A Notary Signing Agent has been providing signing services will no incidents for over 10 years without having undergone a background screening. Therefore he or she

Answers

he or she don't make any mistakes

Fixed costs can be defined as costs thatGroup of answer choicesvary inversely with production.vary in proportion with production.are incurred only when production is large enough.are incurred even if nothing is produced.

Answers

Answer: are incurred even if nothing is produced.

Explanation:

Fixed costs are referred to as the cost that doesn't vary with the production level. Even if the company doesn't produce anything, the fixed cost will still be incurred.

The fixed cost is different from the variable cost which is the cost that varies along with production. Examples of fixed cost include salaries, rental lease payments, salaries, etc.

Marigold Industries has 8400 equivalent units of production for both materials and for conversion costs. Total manufacturing costs are $123880. Total materials costs are $97000. How much is the conversion cost per unit?a. $12.37. b. $5.10. c. $29.84.d. $17.47.

Answers

Answer:

Wow that’s a lot of numbers hold up

Explanation:

At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.

Answers

Answer:

Bargain Electronics

Bargain Electronics would realize a net income of $6,000 by accepting the special order.

Explanation:

a) data and Calculations:

Production costs of MP3 Player:

Variable cost = $20

Fixed cost = $10

Total costs = $30

Selling price = $45

Special order from a foreign wholesaler = 3,000 units

Special order selling price = $25 per unit

Additional special shipping costs per unit = $3

Variable production costs =  $20

Total costs for the special order = $23 ($3 + $20)

Net income from special order = $6,000 ($2 * 3,000)

A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)

Answers

Answer:

Defined benefit plan

Explanation:

The defined benefit plan is the benefit pension plan that could be funded by the employers and also called as the retirement plan of an employer sponsored in which the benefits are to be determined on different kind of factors

So as per the given situation, it is a defined benefit plan

Hence, the same is to be considered

Which of the following investment choices is least risky?
A. Flipping
B. CDs
C. Government Bonds
D. Renting

Answers

Answer:

CDs is the least risky, as it is issued by the bank and endorsed by the government

Black, Inc., acquired another company for $5,000,000. The fair value of all identifiable tangible and intangible assets was $4,500,000. Black will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition

Answers

Answer:

The correct answer is "Zero (0)".

Explanation:

An applies specifically asset which is responsible for a different corporation's or business's extra purchasing amount, is considered as Goodwill.Goodwill commodities are confidential, intellectual properties or copyright and trademark awareness that aren't commonly produced. Therefore it isn't amortized.

Thus, the above is the appropriate solution.

Goods in transit are included in a purchaser's inventory:____.A. If the goods are shipped FOB destination. B. When the supplier is responsible for freight charges. C. When the purchaser is responsible for paying freight charges.D. At any time during transit.E. After the half-way point between the buyer and seller.

Answers

Answer:

B. When the supplier is responsible for freight charges.

Explanation:

Goods in Transit can be regarded as merchandise as well as other types of inventory which has already shipped out of shipping dock of the seller, but it has not gotten to the receiving dock of the buyer.This concept is utilized in order to know maybe the buyer or the seller of that particular goods has taken the possession of that particular goods and to know the party that Is paying for transport. The Freight charge, can be regarded as as freight rate, and this is amount that is been paid to a carrier company so that transportation of goods to agreed location will be possible.

It should be noted that Goods in transit are included in a purchaser's inventory When the supplier is responsible for freight charges.

why and how the UK government must provide public goods and quasipublic.

Answers

Answer:

Some goods are described as “quasi-public” goods because, although they are made available to all, their value can diminish as more people use them. For example, a country's road system may be available to all its citizens, but the value of those roads declines when they become congested during rush hour.

Explanation:

Nonmanufacturing costs are ______. Multiple choice question. always reported as inventory only reported as inventory under variable costing never reported as inventory only reported as inventory under full absorption costing

Answers

Answer:

never reported as inventory

Explanation:

Nonmanufacturing costs are never reported as inventory. This is because they are not tangible items that need to be stored, also these costs do not have anything to do with the production of the end product and are not resources to the production process. Instead, these costs revolve around everything not related to the product creation such as company personnel or shipping/storage costs. Therefore, it is never reported to inventory which is for products and resources.

1. As more people in India have access to higher education, explain
how potential GDP and aggregate supply will change in the long
run.

Answers

Answer:

As more people in India have access to higher education, the country's economic growth potential, both in its GDP per capita and in its aggregate demand, will increase.

This is so because the higher the levels of education, the greater the added value that each person introduces into their economic production, with which the country's GDP is in turn increased.

On the other hand, this same economic growth generates a greater availability of wealth for society, with which the greater the availability of money, the greater the demand for goods and services that will be produced in that country.

Why do marketers fail to run successful campaigns on LinkedIn?

Answers

Answer:

Here are some reasons why marketers fail to run successful campaigns on LinkedIn:

Not Defining & Refining Audience Reaching out to prospects with the wrong message You’re Sending Sales-Pitch in Your First Interaction You Want Results Quickly

[tex] \huge \mathtt \pink{answer}[/tex]

Even if your campaigns have all been approved, you may still need to ask yourself: “Why are my LinkedIn Ads not getting impressions?” A common reason: You're bidding too low. ... If the user falls into the advertiser's specific targeting options, their ad is entered into the auction, along with other advertisers' bids.

Home Depot selling plywood at wholesale prices during Hurricane Andrew could be considered, (Select the most appropriate answer.) Select one: a. Morally good. b. Legal. c. Charitable. d. Possibly a profitable, long-term business strategy. e. All of the above

Answers

Answer:

d. Possibly a profitable

Explanation:

Wholesale cost goals is to earn profit and sell all goods at a higher price thereby making money and profit. Not consumer centered.
Other Questions
Me ayudan con el problema: ASAP please help meeeeeeeeeeeeeee Find the measure of one exterior angle for the following regular polygon Use the above graph to answer the following question. What event is shown by line 2?O An increase in demandO A decrease in demandO An increase in supplyO A decrease in supply In three to five sentences, discuss what is wrong with the following scenario: At 10 a.m., the staff at the College Cafeteria was cleaning up after breakfast and getting ready for lunch. Carly was cutting up chicken breasts for a casserole dish, and Juan was making a cream pie for dessert. After cutting the chicken, Carly put the chicken in a pan with a cover and stored it on the top shelf in the refrigerator to avoid time and temperature abuse. Juan hurriedly put the cream pie in the refrigerator on the second shelf without a cover. Jerry Rice and Grain Stores has $4,030,000 in yearly sales. The firm earns 2.2 percent on each dollar of sales and turns over its assets 4 times per year. It has $140,000 in current liabilities and $343,000 in long-term liabilities.Required:a. What is its return on stockholders' equity?b. If the asset base remains the same as computed in part a, but total asset turnover goes up to 4.50, what will be the new return on stockholders' equity? Can you answer this math homework? Please! The thought that an effective leader has a high quality relationship with each follower, allowing out-group members to be part of the larger group is ______. Read the following excerpt from the article "Vision, Voice and the Power of Creation: An Author Speaks Out," by T. A. Barron and answer the question that follows:Right now, I am spending a lot of time listening to the voice of a particularly compelling character: the young Merlin. In the end, I finally heard the voice of Merlin thanks to a surprising source: the haunting, mysterious hooting of a great horned owl outside the window of my Colorado home. As I listened to that owl's resonant [echoing] call in the pre-dawn hours one morning, something about it gave me a whole new cadence [rhythm], a whole new sound. And then, a whole new voice.Which adjective supports the author's explicit message about his inspiration for Merlin's voice? Young Mysterious New Whole what did you learn from the life of dev shumsher A(n) Answer is a physician who specializes in diagnosing and treating problems of male reproductive system. Youve learned about some of the benefits of a warm-up. How might rushing into a sport like basketball without a warm-up affect you negatively? Explain. The concentration of hydronium ions is greater than 1 107 for acidic solutions. True False When working with sources, a writer can avoid plagiarism by:A. paraphrasing ideas from the sources without copying theirwordingB. not citing sources that are too similar to his or her own ideas.C. relying on sources that do not list an author for their contents.D. not keeping records that could prove which sources he or shereferenced. Briefly summarize Texas History, covering all the major events from the first mapping of the coast of Texas to the present - WILL MARK BRAINLIEST What happens to form a mid-ocean ridge?A. At a divergent boundary between two oceanic plates, magma risesto form a long chain of volcanoes.B. At a convergent boundary between an oceanic plate and acontinental plate, magma rises to form a long chain of volcanoes.C. At a divergent boundary between two continental plates, magmasinks to form a long valley with mountains on either side.D. At a transform boundary between two oceanic plates, magmasinks to form a long valley with mountains on either side.SUBMIT draw the Venn diagram of b union bA=(2 4 6 8 10 12)B=(1 3 5 7 9 11) I felt approaching footsteps. stretched out my hand assupposed to my mother. Someone took it, and I wascaught up and held close in the arms of her who had cometo reveal all things to me, and, more than all things else, tolove me.Helen Keller, The Story of My LifeWhich word from the passage provides a clue a to the type of narration beingused?A. motherB. meC. someoneD. love Can bats eat butterflies? Q/29304199KUoffer