"If you pay $10,000 Canadian dollars for a used truck for your business, then the aggregate investment of the economy is increasing by $10,000 Canadian Dollars" Is this statement True or False? Justify your answer.
No. Because this is a resale. Used goods are not taken into account for calculating GDP because the value of the truck should have been included in the year of its' manufacture.
"If you pay $10,000 Canadian dollars for a used truck for your business, then the aggregate...
Please explain if the following statement is true or false: "If you pay $10,000 Canadian dollars for a used truck for your business, then the aggregate investment of the economy is increasing by $10,000 Canadian dollars." Justify your answer.
1+2 Multiple choice choose best answer 1l If output is described by the production function Y = LaKI-a, then the production function has: (b) diminishing returns to scale (c) increasing returns to scale (d) constant returns to scale (e) None of the above 2. If output is described by the production function Y L°K, with e the production function has: (a) diminishing returns to scale (b) increasing returns to scale (c) constant returns to scale (d) degree of returns to...
You just signed a business contract with one of your clients. The client will pay you the equivalent of $75,000 of today's money a year for five years for the service you will provide. You anticipate the general inflation rate over this period to be 3%. If your desired inflation-free interest rate (real interest rate) is to be 4%, what is the worth of the fifth payment in present dollars? Assume the client will pay the consulting fee at the...
2. Your friend asks you to invest $10,000 in a business venture. Based on your estimates, you would receive nothing for four years, at the end of year 5 you would receive interest on the investment compounded annually at 8%, and at the end of year 6 you would receive $14,500. If your estimates are correct, what would be the IRR on this investment?
1. Your friend asks you to invest $10,000 in a business venture. Based on your estimates, you would receive nothing for four years, at the end of year 5 you would receive interest on the investment compounded annually at 8%, and at the end of year 6 you would receive $14,500. If your estimates are correct, what would be the IRR on this investment?
Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get...
You are planning to acquire a delivery truck for use in your business for five years. Summarize the costs of purchasing versus leasing, and list other factors that might help you decide whether to buy or lease the truck. Consider this as if it were: - your company - your money - your financial statements
The owners pete and peggy peterson have about 10,000 dollars invested in the business. Their desires rate of return on this investment is 10 percent. what volume of business must be generated to reach this ROE (Rate of equity) goal. show in DOLLARS AND PIZZAS. both the question and information are in the photos 2. The owners, Pete and Peggy Peterson, have about $10,000 invested in the business. Their desired rate of return on this investment is 10 percent. What...
instant Virtual Extra iz #2 (Business Cycles, Un.& Infl., Aggregate Exp. Model & Aggregate De... Saved 13 The graph below shows the consumption schedule for Zamunda. Research has yielded the following information about Zamunda: At the current interest rate, gross investment (1) is $500. government purchases (G) are $800, exports are $400, and imports are $200. Instructions: In part a, enter your answer as a whole number. In part cround your answers to 1 decimal place. a. By supplementing the...
Instructions: Enter your answers as a whole number. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? $ ___________ billion b. If the MPC is 0.75, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? $ ___________ billion Suppose instead that the MPC is 0.8. c. How much does aggregate demand and government purchases need to change to restore the economy...