Suppose that the central government decides to try and temporarily increase domestic investment spending by relaxing various domestic investment regulations for six months. Use the DD-AA model as discussed in the textbook to answer the following questions: (a) What will be the short-run consequences of this policy change? Briefly explain. (b) What effect will this policy change have on the domestic current account? Briefly explain. (c) How does your analysis in part (a) change if this policy change is made permanent?  

• At the end of each month, you would enter your actual spending in each category to identify budget variances. What is your experience with creating and using a personal budget?
• Have you tracked expenses to identify variances? If so, what method did you use?
• What new strategies are there? How can your tax withholding affect your budget or financial goals?

Fiscal Policy is the means by which government adjusts its spending and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy and that is defined as a policy through which a central bank influences a nation's money supply.

In my opinion I prefer a monetary policy because of its stability and fiscal relies too much on government debt. Fiscal policy decision making can also be influenced more on politics than the need of the economy.

Governments use each policy when the economy is too hot and inflation is rising:

fiscal: Governments can influence productivity levels by increasing or decreasing tax levels and public spending and usually curbs inflation. It also increases employment, can maintains a good value of money. Basically the government increases taxes to suck money out of the economy.

monetary: This is the process by which the authority on currency of a country such as a central bank controls either the cost of very short-term borrowing or money supply. They often target inflation of interest rate to create price stability and maintain trust in its currency.

Each policy used in a recession the government can increase government spending and cut taxes (or both). This can bring more jobs and the workers have more disposable income to put back into the economy.

Can I get a  reponce to this guy. Please try to wrte your agreement.

Your discussion post must be substantive. As a guideline your response to each question should be at least one paragraph. Your responses to fellow classmates must be substantive as well. Stating, “I agree” or “Good work” is cheerleading

1. When the price of a good falls, we know exactly what will happen to consumer spending on that good. True or False? Explain.

2. Is the demand for hospital services inelastic or elastic? Explain.

3. Briefly explain why indifference curves cannot intersect.

4. If nurse practitioners and primary care physicians were perfect substitutes, what would you expect to be their wage differential?

5. Other things being equal, if the demand for physician services suddenly became more inelastic, how would that affect consumer surplus?

Would you favor spending more federal tax money on the arts? Of a random sample of n₁ = 204 women, r₁ = 56 responded yes. Another random sample of n₂ = 193 men showed that r₂ = 47 responded yes. Does this information indicate a difference (either way) between the population proportion of women and the population proportion of men who favor spending more federal tax dollars on the arts? Use α = 0.10. Solve the problem using both the traditional method and the P-value method. (Test the difference p₁ − p₂. Round the test statistic and critical value to two decimal places. Round the P-value to four decimal places.)

Conclusion

Fail to reject the null hypothesis, there is sufficient evidence that the proportion of women favoring more tax dollars for the arts is different from the proportion of men.Reject the null hypothesis, there is sufficient evidence that the proportion of women favoring more tax dollars for the arts is different from the proportion of men.    Reject the null hypothesis, there is insufficient evidence that the proportion of women favoring more tax dollars for the arts is different from the proportion of men.Fail to reject the null hypothesis, there is insufficient evidence that the proportion of women favoring more tax dollars for the arts is different from the proportion of men.

Compare your conclusion with the conclusion obtained by using the P-value method. Are they the same?

We reject the null hypothesis using the P-value method, but fail to reject using the traditional method.These two methods differ slightly.    The conclusions obtained by using both methods are the same.We reject the null hypothesis using the traditional method, but fail to reject using the P-value method.

Ten capital spending proposals have been made to the budget committee as the members prepare the annual budget for their firm. Each independent project has a 5-year life and no salvage value.

(a) Based on a MARR of 14%, which projects should be approved?

(b) Rank-order all the projects according to desirability.

(c) If only $70,000 is available, which projects should be approved?

(d) Are the results the same if the projects are ranked on IRR? What is the opportunity cost of capital?

Please provide step by step solutions. Good solution = automatic thumbs up!

Omnicom Group is considering spending $350,000 at Time 0 to test a new product. Depending on the test results, the company may decide to spend $786,000 at Time 1 to start production of the product. If the product is introduced and it is successful, it will produce aftertax cash flows of $654,000 a year for Years 2 through 5. The probability of successful test and investment is 60 percent. What is the net present value at Time 0 given a 14 percent discount rate?

$239,246.24

$231,875.30

$238,579.49

$243,618.25

$249,864.27

Bombardier, after spending $250,000 on a feasibility study, has determined that its customers will be willing to pay more money for the C Series model if Bombardier invests in a manufacturing technology upgrade that can enhance the safety of the engine. Bombardier realizes that the delays in the C Series program are likely costing them potential sales of the C Series jets. The feasibility study allowed management to better understand the implementation costs of the new technology as well as the potential payoff. Thus, they see the opportunity to make a short-term investment in the engine technology that will affect the next eight years of production in order to improve their overall offering to their customers.

Because the C Series production facilities are already covered in original cost estimates, no additional costs for production facilities are required. However, the required new machinery will cost $2,000,000 and will be subject to capital cost allowance depreciation (Asset Class 8, 20% CCA rate). When the C Series program expires after year eight, Bombardier executives figure there will be $324,578 in salvage on the equipment. Sales across the eight years of the C Series program are projected to be 18 units, 22 units, 29 units, 43 units, 54 units, 34 units, 36 units, and 39 units.

Bombardier expects that the price to their customers will start at an additional $120,000 with three per cent increases per year, as they wish to keep their prices competitive. Material costs of production are expected to be $68,000 per unit, growing at four per cent a year. Fixed costs per annum will amount to $680,000. The corporate tax rate Bombardier is subject to is 26.7 per cent, as of end of fiscal 2018.

Finally, Bombardier requires a maintained investment in working capital of $375,000 at the beginning of the project. This will stay at 15 per cent of sales at the end of each year, and reduces to 0 by the project's end; therefore, the investment in working capital is fully recovered by the project's end. As the company will be purchasing raw materials prior to production and sales delivery, they must create an investment in inventory as well as maintaining some cash as a buffer against unforeseen expenses. If the firm has negative taxable income from the project in a given year, please assume that the firm has positive income from other projects, so that the loss can be written off (as a tax benefit) against this other project income in the same year.

Questions

2.     What is the Net Present Value of the project if the required rate of return (Weighted Average Cost of Capital) is equal to 3.80 per cent?

3.    By how much would the Net Present Value of the project change if unit sales were 25 per cent less than expected (round down toward zero the number of units)?

A political candidate wishes to determine if endorsing increased social spending is likely to decrease her popularity (α = .05). She has access to data on the popularity of several other candidates who have endorsed increased spending. The data were available both before and after the candidates announced their positions on the issue. The data are as follows:

Will we need a one- or two-tailed hypothesis test?

State your null hypothesis

State your alternative hypothesis

Provide the SPSS output for your test and identify (circle or highlight) the t-obtained and the p-value

Did you reject or fail to reject the null hypothesis?

What can you conclude?

Calculate the 95 confidence interval for the “Before” mean

Calculate Cohens D

What is the Net Present Value (NPV) and Internal Rate of Return (IRR) of spending $120,000 today on law school assuming you made $50,000/year before going to law school and $55,000/year for the next 35 years after law school? Assume you could invest this money elsewhere and earn 13%? with financial calculator

answer NPV = ($82,072.14); IRR = 2.26%