1. If the Canadian government decreases the governmental expenditures, then in the market for loanable funds

Select one:

a. The real interest rate increases and the investment decreases

b. The real interest rate decreases and the investment increases

c. The real interest rate increases and the investment increases

d. The real interest rate decreases and the investment decreases

2. Suppose that the disposable income increases by 10 units, how much is the change in the consumption level if the Consumption function is described as follows:

C = 200 + 0.8(Y-T)

Select one:

a. 208

b. not enough information to provide the answer

c. 8

d. the answer would depend on the tax amount

Your firm has an opportunity to invest in a project that costs $800 and you expect it to return two payments of 500 per year. The interest rate of the project is 10%. The current NPV of project is $67.77.

You also have the option to wait one year to invest the $800. If you wait you will know more and can revise your expectations such that you either expect to return two payments of $750 with a probability of 0.8 or alternatively two payments of $300 (the probability of this is equal to 1 minus the probability of the first result). The interest rate of the project is still 10%.

What is the current present value of the NPV if they choose to wait?

Widmer Company had gross wages of $237,000 during the week ended June 17. The amount of wages subject to social security tax was $213,300, while the amount of wages subject to federal and state unemployment taxes was $30,000. Tax rates are as follows:

The total amount withheld from employee wages for federal taxes was $47,400.

If an amount box does not require an entry, leave it blank.

a. Journalize the entry to record the payroll for the week of June 17.

b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.

In a Wi-Fi network, data packets are transmitted between a laptop computer and the access point. Since the transmission is wireless, errors can occur that may render the packet useless, so, when received in error, the packet is discarded. As a protection for errors, an acknowledgement is expected, and if the packet is received in error, it is retransmitted, until correctly received. Consider that the probability that a packet is discarded is p=0.6.

(a) What is the probability that the packet needs to be transmitted 3 times or more?

(b) If you could use more powerful coding to reduce the value of p, what should be p, such that the probability of having no more than two transmissions for the same packet is 0.8?

Suppose that the term structure of interest rates is flat in the US and UK. The USD interest rate is 2.5% per annum and the GBP rate is 2.9% p.a. Under the terms of a swap agreement, a financial institution pays 3% p.a. in GBP and receives 2.6% p.a. in USD. The principals in the two currencies are GBP20 million and USD32 million. Payments are exchanged every year, with one exchange having just taken place. The swap will last 3 more years NOTE: 1 USD = 0.8 GBP

i) Show the payments to be made in a table and then calculate the value of the swap to the financial institution. Assume all interest rates are compounded continuously.

An article reported that what airline passengers like to do most on long flights is rest or sleep; in a survey of 3697 passengers, almost 80% did so. Suppose that for a particular route the actual percentage is exactly 80%, and consider randomly selecting nine passengers. Then x, the number among the selected nine who rested or slept, is a binomial random variable with n = 9 and p = 0.8. (Round your answers to four decimal places.)

(a) Calculate p(6).

b) Calculate p(9), the probability that all nine selected passengers rested or slept.
p(9) =  

(c) Determine P(x ≥ 6).

The summary of the payroll for the monthly pay period ending December 15 indicated the following:

Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes.

This is to be done in Excel so if your answer is similar to that format I would really appreciate it. Thanks!! :)