Questions
5. What is the impact of costly investment on trade balance in the short run? (a)...

5. What is the impact of costly investment on trade balance in the short run?
(a) It decreases trade balance.
(b) It increases trade balance.
(c) It may decrease or increase trade balance.
(d) It has no impact on trade balance.

6. What is the impact of costly investment on trade balance in the long run?
(a) It decreases trade balance.
(b) It increases trade balance.
(c) It may decrease or increase trade balance.
(d) It has no impact on trade balance.

7. What is the impact of costly investment on current account in the short run?
(a) It decreases current account.
(b) It increases current account.
(c) It may decrease or increase current account.
(d) It has no impact on current account.

8. What is the impact of costly investment on current account in the long run?
(a) It decreases current account.
(b) It increases current account.
(c) It may decrease or increase current account.
(d) It has no impact on current account.

In: Economics

Monetary policy refers to Federal Reserve actions to influence the money supply and economic conditions. Fiscal...

Monetary policy refers to Federal Reserve actions to influence the money supply and economic conditions. Fiscal policy is spending and taxing by the government, which can also affect economic conditions. Describe how changes in spending and taxes can affect economic activities. (typing please,thank you.)

In: Economics

Case study 4 UPS in India - Time to shift gear Provide a finding of fact...

Case study 4 UPS in India - Time to shift gear

Provide a finding of fact for International Business

Provide a full justification and recommendation for each finding of fact

In: Economics

Two methods of maintenance for indefinite service life are being evaluated: Method 1. The first cost...

Two methods of maintenance for indefinite service life are being evaluated:

Method 1. The first cost would be $60,000, and $25,000 would be required at five-year intervals forever.

Method 2. The first cost would be $150,000, and $180,000 would be required at 50-year intervals of forever.

At I i = 12%, which method is the better one?

In: Economics

According to Theodore Moran, when do the greatest spillovers on the local economy occur? Select one:...

According to Theodore Moran, when do the greatest spillovers on the local economy occur?

Select one:

a. When there is an appropriate balance between multinational corporations and the state in productive decision-making

b. None of the choices given (above/below)

c. When the multinational corporation is free to make the productive decisions

d. When the UN is responsible for regulating productive decisions.

e. When the state is responsible for regulating productive decisions

In: Economics

how politically stable is the u.k.? (do they get respect from citizens; preferably in a paragraph...

how politically stable is the u.k.? (do they get respect from citizens; preferably in a paragraph or two)

In: Economics

provide an example(s) where advertising has positive benefits for consumers. Provide examples where advertising has negative...

provide an example(s) where advertising has positive benefits for consumers. Provide examples where advertising has negative effects. The Government has regulated certain advertising such as cigarettes and marketing to children. Should all advertising be regulated?

In: Economics

Using examples of goods or services you are familiar with, explain how does the knowledge of...

Using examples of goods or services you are familiar with, explain how does the knowledge of price elasticities helps these two entities to make pricing decisions.

(a) A very popular fried koay teow seller in Penang. (400 words)

(b) A fashion boutique. (400 words)

In: Economics

A newly issued bond pays its coupons once annually. Its coupon rate is 8.5%, its maturity...

A newly issued bond pays its coupons once annually. Its coupon rate is 8.5%, its maturity is 20 years, and its yield to maturity is 10.5%.

a. Find the holding-period return for a 1-year investment period if the bond is selling at a yield to maturity of 9.5% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)


b. If you sell the bond after one year, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

d. Find the realized compound yield before taxes for a 2-year holding period, assuming that (1) you sell the bond after two years, (2) the bond yield is 9.5% at the end of the second year, and (3) the coupon can be reinvested for one year at a 3% interest rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

e. Use the tax rates in (b) above to compute the after-tax 2-year realized compound yield. Remember to take account of OID tax rules. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

In: Economics

Explain the impact of the national debt on capital markets and future living standards. What are...

Explain the impact of the national debt on capital markets and future living standards. What are the consequences of the vastly increased foreign holdings of US debt? What are the consequences if the debt is paid off?

In: Economics

describe how a bill becomes a law from the moment of introduction until the moment of...

describe how a bill becomes a law from the moment of introduction until the moment of enforcement

In: Economics

consider a firm’s desire to invest in its capital stock and answer the following questions: A)...

consider a firm’s desire to invest in its capital stock and answer the following questions:
A) Describ the concept of diminishing marginal product of capital and why it is a common property for a production function to have.
b) Describe the firm’s user cost of capital.
c) explain how the firm selects its desired capital stock.
d) explain how the firm’s investment is related to its desired capital stock.
e) Why is the desired level of investment a decreasing function of the real interest rate?

In: Economics

In 2009, Nobel-prize winning economist Paul Krugman wrote, “The paradox of thrift is one of those...

In 2009, Nobel-prize winning economist Paul Krugman wrote, “The paradox of thrift is one of those Keynesian insights that largely dropped out of economic discourse. Now it’s back as a concept.”
Either: Use the following data to explain the paradox of thrift:
Y = C ​​+ Ig ​+ G ​+ Xn
Y = 50 + .9Y ​+ 50 ​+ 50 ​+ 50
What is the savings function where S = -a + (1-b)Y?
Find equilibrium GDP (solve for Y)?
Use the answer to determine the level of S
Now suppose Savings increases by $10 so Consumption decreases by $10
Find the new equilibrium GDP and calculate the savings function and level of Savings.
Use your answer to explain the paradox of thrift.
Or: Describe in words and in a graph why the paradox of thrift is truly a paradox.

In: Economics

Given the following information for a monopolistic competitor: Demand: P = 78 – 5(Q) Marginal revenue:...

Given the following information for a monopolistic competitor:

Demand: P = 78 – 5(Q)

Marginal revenue: MR = 78 – 10(Q)

Marginal cost: MC = 2(Q) + 10

Average total cost at equilibrium is 14

1. At what output (Q) will this firm maximize profit? _____

2. At what price (P) will this firm maximize profit? _______

3. What is the total revenue (TR) earned at this output level? _____

4. What is the total cost (TC) accrued at this output? _____

5. What profit or loss is experienced by this firm? ______

6. Could this firm be in a longrun situation? (answer 1 = yes, 2 = no) _____

In: Economics

Why does the auto industry prefer uniform (national) standards for automobile emissions as opposed to regionally...

Why does the auto industry prefer uniform (national) standards for automobile emissions as opposed to regionally varying standards? Are uniform standards beneficial to everyone?

In: Economics