What is the effect of decreasing the money supply on the interest rate?

Question 1 options:

Question 2 (1 point)

What is the main cost of holding money/cash?

Question 2 options:

Question 3 (1 point)

What should the Federal Reserve do in the bond market to address a recession?

Question 3 options:

Question 4 (1 point)

Which of the following is true about interest rates?

Question 4 options:

Question 5 (1 point)

What is the effect of the Federal Reserve selling bonds in the AD/AS model?

Question 5 options:

Question 6 (1 point)

Suppose that the MPC is 0.75 and the government reduces spending by $20 billion. How much will the aggregate demand curve shift as a result?

Question 6 options:

Question 7 (1 point)

If the government lowers taxes, what will happen in the AD/AS model?

Question 7 options:

Question 8 (1 point)

Which of the following fiscal policies would increase aggregate demand?

Question 8 options:

Question 9 (1 point)

Which of the following is not an automatic stabilizer?

Question 9 options:

Question 10 (1 point)

Which of the following faces a bigger lag in terms of implementation?

Question 10 options:

Interest rates always increase as the length of time until repayment increases.

Question 7 options:

Two years ago you bought a bond with a 5% coupon that matures ten years from now. Today the interest rate on similar bonds is 10%. This bond sells at

Question 8 options:

Donuts Delite just paid an annual dividend of $1.10 a share. The firm expects to increase this dividend by 8 percent per year the following three years and then decrease the dividend growth to 2 percent annually thereafter. Which one of the following is the correct computation of the dividend for year 5?

Question 11 options:

An Anesthesiologist claims that a certain medication decreases the pain level of post-operative patients within 20 minutes. Fourteen Patients are randomly chosen and asked to give a number from 1-10 that represents his/her pain level as soon as waking up from surgery and then again in 20 minutes after taking the medication. The pain level for patients before and after the medication is recorded below.  Assume the pain levels are normally distributed. Use 0.05 as the level of significance, as well as d indicates the mean difference: patient pain level before medication -  patient pain level after medication.

Chose the appropriate hypotheses set up for this situation.

Based on your choice in part 1 , determine the direction of your hypothesis test.

Right skewed test.

Right-tailed test.

Left-tailed test.

Two-tailed test.

Calculate the test statistics.

Calculate the P-Value for this test statistic.

(Round your answer to 4 decimal places)

Based on your finding in part 4, what would be the appropriate decision?

Based on your finding from part 5,

a.) What type of error could have occurred potentially?

b.) Explain the reasoning of the type of error of your choice.

Based on your findings from previous parts (1-5), which one of the statements below would be true?

Data on 72 randomly selected flights departing from the three major NYC airports in 2013.

Departure delays in minutes. Negative times represent early departures.

Q1. We want to estimate the proportion of flights that departed from the NYC airports in 2013 which are delayed. There are two ways we can do this. We can either obtain a point estimate or calculate an interval estimate. Provide estimates using both methods. Use a 99% confidence level. Show all working, define variables and state the distribution as needed.

1. Leverage Analysis:  Your employer has decided to purchase a new manufacturing line.  The new line will generate an additional $3,000,000 of operating income annually and will cost $50,000,000.  You are trying to decide if the line should be financed with debt or with equity.  The company currently has $60,000,000 of debt (borrowing rate is 8%) and $30,000,000 of equity.  

(Part #1) Complete the income statement below (shaded region) including the two ratios at the bottom of the table. (Part #2) Recommend one of the two financing options and DEFEND your decision with sound reasoning in the white space below.

• New manufacturing line cost:                        $50,000,000
• Additional annual Operating Profit:               $3,000,000
• Financing Alternatives:                      $50,000,000 loan or 1,000,000 shares of common stock
• Interest Expense is 8%
• Tax rate is 25%

(7 pts)

Part #2:  Which financing (debt or equity) do you choose and WHY?

Last year, 50% of MNM, Inc., employees were female. It is suspected that there has been a reduction in the percentage of females in the company. This year, in a random sample, 400 employees were male, 380 were female.

a. State the null and the alternative hypotheses.

b. At the .05 level using the critical value approach, determine if there has been a significant reduction in the proportion of females.

c. Show that the p-value approach results in the same conclusion as that of part b

Before the last presidential debates, 50% of registered votes indicated they were planning to vote for the incumbent president. In a recent poll of 1200 registered voters after the debates, 636 indicated they are planning to vote for the incumbent president. Has there been a significant increase in the proportion of registered voters who are planning to vote for the incumbent president?

1. State the null and alternative hypotheses to be tested.

2. Compute the test statistic.

   The null hypothesis is to be tested using α = 0.05. Determine the

   critical value(s) for this test.

4. What do you conclude?

5. Compute the p-value.