A simplified economy is specified as follows:
A. Goods market, all values C, I, G and NX values are in billions
of C$:
Consumption Expenditure: C = 150 + 0.8(Y-T)Investment Expenditure: I = 1,300 - 420iGovernment Expenditure: G = 340Lump-sum Constant Taxes: T = 340Exports: 90Imports: 10
B. Money market, all Md values are in billions of
C$:
Interest Rate: i = 0.09 or 9%Money Demand: Md = 780 - 1,900i
Note: Please keep your answers accurate to two
decimal places.
a) Given the above information, solve for the
following: the equilibrium Y, the money supply M, the consumption
expenditure C, and the investment expenditure I.
Y = 0M = 0C = 0I = 0
Now suppose there is an impending federal election, and the
government promises to use fiscal policies to stimulate the
economy.
b) Find the value of the goods market
multiplier.
Goods market multiplier = 0
c) Let G rise to 420. Solve for the new
equilibrium Y and C.
Y = 0C = 0
d) Demonstrate how the increase in G affects the
economy through the multiplier. Use three rounds of effects to
demonstrate the multiplier effects. Let the first round be related
to health care spending, the second round related to clothing, and
the third round related to food.
Round 1 -> As the government wants to spend $1 (or $1 billion)
on health care, it demands the production of health care equipment
such as hospitals, medicine, equipment, etc. to be built and sold to
the government. So as ΔG = 1, the production ΔY =
0
. This Y is the
income to the nurses, doctors, construction workers, etc.
Round 2 -> As the nurses receive their new income of Y =
0
, theyspend
0
% of this $
0
on clothing ->
0
cents worth of clothing wouldbe produced, or ΔY =
0
-> this
0
cents would be the income of the
workers involved in making the clothing.
Round 3 -> As the clothing workers receive their new income of
Y =
0
, they spend
0
% of this
0
cents on food -> (
0
)(
0
) =
0
or
0
cents worth of food would be produced, or ΔY =
0
-> this would
be the new income to the food workers.
e) Now consider monetary policies only. Suppose
the BOC wants to drop the i to 0.04 or 4%, with G still at
$340. Solve for the new I and the ΔI compared to when i =
0.09. Given the multiplier, how much would you expect Y to rise
by?
I = 0Change in I = 0Change in Y = 0
f) Given the changes in (e), find the equilibrium
Y, the money supply M, the consumption expenditure C, and the
investment expenditure I.
Y = 0M = 0C = 0I = 0
g) Complete the following statement to demonstrate
how the drop in i affects the money supply, then I, then
Y, then C.
As i decreases -> ΔM (Select One) -> ΔI (Select One) -> ΔY (Select One) -> ΔC (Select One)
In: Economics
Suppose that you are a member of the Board of Governors of the Federal Reserve System and the economy is experiencing an 8 percent inflation rate. Unemployment is at the full-employment level and the target interest rate is currently 4 percent.
a. If the economy is experiencing a sharp rise in inflation, as a member of the Board of Governors, you would recommend
decreasing the federal funds rate.
setting the federal funds rate equal to the discount rate.
setting the federal funds rate equal to zero.
increasing the federal funds rate.
b. To lower the inflation rate to 4 percent, you recommend contracting the supply
increasing the reserve ratio, the IOER rate, or the discount rate, or selling bonds.
decreasing the reserve ratio, increasing the IOER rate or the discount rate, or buying bonds.
increasing the reserve ratio, decreasing the IOER rate or the discount rate, or selling bonds.
decreasing the reserve ratio, the IOER rate, or the discount rate, or buying bonds.
c. The recommendations you provided above would
reduce the lending ability of the banking system, decrease the real interest rate, and increase investment spending, aggregate demand, and inflation.
increase the lending ability of the banking system, decrease the real interest rate, and increase investment spending, aggregate demand, and inflation.
reduce the lending ability of the banking system, increase the real interest rate, and reduce investment spending, aggregate demand, and inflation.
increase the lending ability of the banking system, decrease the real interest rate, and reduce investment spending, aggregate demand, and inflation.
In: Economics
Sharp Company manufactures a product for which the following standards have been set:
| Standard Quantity or Hours |
Standard Price or Rate |
Standard Cost |
||||||
| Direct materials | 3 | feet | $ | 5 | per foot | $ | 15 | |
| Direct labor | ? | hours | ? | per hour | ? | |||
During March, the company purchased direct materials at a cost of $45,210, all of which were used in the production of 2,500 units of product. In addition, 4,100 direct labor-hours were worked on the product during the month. The cost of this labor time was $30,750. The following variances have been computed for the month:
| Materials quantity variance | $ | 3,600 | U |
| Labor spending variance | $ | 2,750 |
U |
| Labor efficiency variance | $ | 700 |
U |
Required:
1. For direct materials:
a. Compute the actual cost per foot of materials for March.
b. Compute the price variance and the spending variance.
2. For direct labor:
a. Compute the standard direct labor rate per hour.
b. Compute the standard hours allowed for the month’s production.
c. Compute the standard hours allowed per unit of product.
For direct materials, compute the price variance and the spending variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
|
In: Accounting
A popular online retail website was interested in consumer spending during the holiday shopping weekend after Thanksgiving. They collect data on a random sample of 400 shoppers, particularly noting how much money each shopper spent. The following histogram was constructed using the data:
The retailer determines that this sample had an average of $84.71 with a standard deviation of $46.87.
In: Statistics and Probability
Based on the information provided for a one-year project, answer
the following questions.
PV =$100,000 AC =$60,000 BAC=$125,000 ETC = $100,000
In: Finance
Data available:
In: Physics
could you do all the challenges?
public class Main
{
public static void main(String[] args)
{
// declare an array so you can easily use them under
// one name
//ex1 array of test score 0-100
int[] testScores = new int[100];
//ex2 array of 200 gpa
double[] gpa = new double[200];
//ex3 50 element array of age
int[] age; //1 - declares age array
age = new int[50]; //2 - instantiates age array
age[0] = 10; //3 - put initial values in
age[1] = 15; // each element
// challange: initialize testScores with random
{
Random int=new Random();
int score;
for (int i = 0; i < 100 ; i++)
{testScores[i] = rand.nextInt(101);
System.out.println(testscores[i] + " "); }
// scores using a loop. Do not print (we'll later)
// challenge: using the OTHER LOOP print the elements of the
array
int i=0;
while(i< 100)
{testScores[i] = rand.nextInt(101);
System.out.println(testscores[i] + " ");
i++;
}
// challange: look through your testScores array and count
// how many falling scores were there i.e. <68
int falling = 0;
// challenge: ask the user for a numberScore i.e. 77
// and count how many times a testScore is
// within 5 of numberScore
//challenge: put random gpa's into the gpa array.
// print the average GPA.
//challenge: on each element of the GPA array, print the
// GPA and the next GPA if they are equal
}
}
In: Computer Science
The cloudy afternoon mirrored the mood of the conference of division managers. Claude Meyer, assistant to the controller for Hunt Manufacturing, wore one of the gloomy faces that were just emerging from the conference room. “Wow, I knew it was bad, but not that bad,” Claude thought to himself. “I don’t look forward to sharing those numbers with shareholders.”
The numbers he discussed with himself were fourth-quarter losses which more than offset the profits of the first three quarters. Everyone had known for some time that poor sales forecasts and production delays had wreaked havoc on the bottom line, but most were caught off guard by the severity of damage.
Later that night he sat alone in his office, scanning and rescanning the preliminary financial statements on his computer monitor. Suddenly his mood brightened. “This may work,” he said aloud, though no one could hear. Fifteen minutes later he congratulated himself, “Yes!”
The next day he eagerly explained his plan to Susan Barr, controller of Hunt for the last six years. The plan involved $300 million in convertible bonds issued three years earlier.
Meyer: By swapping stock for the bonds, we can eliminate a substantial liability from the balance sheet, wipe out most of our interest expense, and reduce our loss. In fact, the book value of the bonds is significantly more than the market value of the stock we’d issue. I think we can produce a profit.
Barr: But Claude, our bondholders are not inclined to convert the bonds.
Meyer: Right. But, the bonds are callable. As of this year, we can call the bonds at a call premium of 1%. Given the choice of accepting that redemption price or converting to stock, they’ll all convert. We won’t have to pay a cent. And, since no cash will be paid, we won’t pay taxes either.
1. What would be the impact of following up on Claude’s plan? Who would be affected if the plan is implemented? Who would benefit? Who would be injured? Consider people or related parties both inside and outside of the company.
2. Do you perceive an ethical dilemma? Use at least one of “The Ethical Guidelines”.
3. Should Susan follow Claude’s suggestion? Why or why not?
In: Accounting
Selected financial information gathered from the Matador Corporation follows:
|
Year 3 |
Year 2 |
Year 1 |
|
|
Average assets |
$1,007,000 |
$1,094,000 |
$1,184,000 |
|
Average equity |
$215,000 |
$294,000 |
$364,000 |
|
Return on assets |
5.9% |
6.6% |
7.2% |
|
Quick ratio |
0.3 |
0.5 |
0.6 |
|
Sales |
$1,650,000 |
$1,452,000 |
$1,304,000 |
|
Cost of goods sold |
$1,345,000 |
$1,176,000 |
$1,043,000 |
Using only the data presented, which of the following statements is most correct?
A. Leverage has declined.
B. Return on equity has improved.
C. Gross profit margin has improved.
In: Accounting
Assume you are a member of the New York City Council prior to the COVID 19 crisis. The Council is considering placing an excise tax on the following goods
After hearing that you studied Economics at Ramapo College, the City Council members ask you to select the products that would result in the most efficient tax policy. You recommend...
Group of answer choices
A.1, 2 and 3
B.1, 2, 3 and 4
C.1 only
D.1 and 3
In: Economics