o close an inflationary expenditure gap of $20 billion in an economy with a marginal propensity to consume of 0.8, it would be necessary to

• decrease the aggregate expenditures schedule by $20 billion.

• decrease the aggregate expenditures schedule by $4 billion.

• increase the aggregate expenditures schedule by $4 billion.

• increase the aggregate expenditures schedule by $20 billion.

EXPECTED AND REQUIRED RATES OF RETURN

Assume that the risk-free rate is 6% and the market risk premium is 3%.

What is the required return for the overall stock market? Round your answer to two decimal places. %

What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places.

A blood test indicates the presence of a particular disease 96​% of the time when the disease is actually present. The same test indicates the presence of the disease 0.8​% of the time when the disease is not present. Two percent of the population actually has the disease. Calculate the probability that a person has the​ disease, given that the test indicates the presence of the disease.

5. You are using regression analysis to estimate the equity beta for an electric utility. Suppose the risk-free rate of return is zero, and you run the CAPM regression, obtaining a constant term equal to 0.5 and a slope parameter equal to 0.8. Have you implemented the CAPM regression correctly? Explain why or why not.

A plant that operates with Rankine cycle, has the following conditions: P1 = P2 = 10,000 kPa, T2 = 600 ° C, P3 = P4 = 10 kPa, η turbine = 0.8 and η pump = 0.75, power produced in the turbine = 80,000 kW. Calculate: inlet heat, outlet heat, steam flow, and thermal efficiency.

Economic Forecasting. Assume you are a cartoon artist at a local theme park. At your current price, $8.50, you sell 500 sketches a month. As a result of a $1.00 price increase sales reduced by 100 sketches.

1. What is the demand elasticity of your sketches? Interpret your results.
2. Assume your marginal cost is $4. What is your desired margin and your current margin? Interpret these numbers.
3. Was your price strategy profitable? Why or why not?

A survey asked 900 adult Americans how much it would bother them to stay in a room on the 13^th floor of a hotel. Interestingly, 15% said yes. Explain the meaning of the result!

a. What is the Standard Error of the estimate of the population proportion?

b. What is the Margin of Error at a C.L. of 95%?

c. What is the Margin of Error at a C.L. of 92%?

d. At a 98% C.L., if the researcher wants to limit the error within one percent range, what size of the sample is needed?

Which of the following statements indicates a possible fraud? I. Fill out this e-mail survey to receive a free gift. II. Be one of the first 30 callers to receive three days and two nights at a famous Las Vegas hotel. III. Your wealthy uncle recently died; send $250 to obtain details about your inheritance. Group of answer choices

III only.

I, II, and III.

II only.

II and III only.

Heating degree-day (HDD) and cooling degree-day (CDD) futures contracts make payments based on whether the temperature is abnormally hot or cold

. Required: a) Illustrate how these types of contracts are traded on the Chicago Mercantile Exchange (CME) using example(s)

. b) Evaluate why the following business might be interested in such a contract

:i) Soft drink manufacturers;

ii) Ski resort operators;

iii)Electric utilities;

iv)Amusement park operators.

The Kentucky cave shrimp is an endangered species which lacks eyes and has a translucent body suggesting that the animal has long lived underground. An important question that ecologists would like to understand is how biotic as well as abiotic factors in its environment have contributed to restrict the historical range of this unique species from 5 localities in the state to now just the groundwater basins in the Mammoth Cave National Park region. The level of ecological study in question would be: ?