With reference to the discounted cash flow model for determining stock prices, cafrefully explain how stock prices might be affected by the following policy changes: 1) an unexpected monetary expansion with no change in fiscal policy; 2) an anticipated monetary expansion with no change in fiscal policy; 3) a fiscal expansion with no change in monetary policy. 12pt v Paragraph v B A v To

With reference to the discounted cash flow model for determining stock prices, cafrefully explain how stock prices might be affected by the following policy changes: 1) an unexpected monetary expansion with no change in fiscal policy; 2) an anticipated monetary expansion with no change in fiscal policy; 3) a fiscal expansion with no change in monetary policy. 12pt v Paragraph v B A v To

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You've observed the following returns on Yamauchi Corporation's stock over the past five years: -27.9 percent, 15.6 percent, 34.2 percent, 3.3 percent, and 22.3 percent. The average inflation rate over this period was 3.33 percent and the average T-bill rate over the period was 4.3 percent. a. What was the average real risk-free rate over this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average real risk premium? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. X Answer is complete but not entirely correct. Average real risk-free rate Average real risk premium 0.94 % 8.48 X %
Do not give directly answers explain properly Fill the blanks. A bond is a legal promise to repay a debt. Each bond specifies -(), the amount originally lent, -(), the date when the principal amount will be repaid -(), the periodic interest payments to the bondholder -(), the interest rate that is applied to the principal to determine the coupon payments. its macroeconomics subject ECO202
15
During the economic expanisio, bond demand curve shifts to the _____ and bond supply curve shifts to the _____. If the supply curve shifts more than the demand curve does, the equilibrium interest rate______. right or left increase or decrease
Refer to the figure below: +16 +12 +8 Consumption Investment is more volatile than consumption. -12 Investment 16 -20 -24 1 2 3 41 2000 2 3 4 1 2 3 4 1 2 3 41 2 3 41 2003 2 3 4 1 2 3 41 2 3 4 1 2 3 4 2007 2001 2002 2004 2005 2006 2008 CALENDAR QUARTER Instructions: Enter your responses as a percent rounded to the nearest whole number. What was the range, in absolute value of percentage change, of the variation in quarterly growth rates between 2001 Q1 and 2003 Q4 of a. Consumer spending? % b. Investment spending? % CHANGE FROM PRIOR QUARTER (porcent)
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