How do declines in business inventories enter national income accounts? O negatively, in the investment category negatively, in the consumption category O negatively, in the net export category O positively, in the profits category
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- Jane, who works for the economic research department in a multinational corporation, is preparing a report for the advisory board of the company. The report intends to clarify in which country they should invest given the expected change in demand. The objective is, of course, to identify the country with greater change in demand. Jane analyzes countries A and B that currently have the same demand. She calculates the partial derivatives of demand with respect to income and finds that for country A it is greater than for country B. Demand in country A is measured in pounds and in country B in Kg. Can we conclude that if the only change expected in both countries is a change in income of 3.5%, then the company should invest in country A? no, we should calculate instead the income elasticity for the consumption of the good the company sells in each country. There is no statistic that can illuminate the advisory board on this problem. yes, because the derivative tells us that for each…Prospect Y = ($10, 0.25 ; $13, 0.75) If Will's utility of wealth function is given by u(x)=x0.25, what is the value of EU(Y) for Will? (In other words, what Expected Utility does Will receive from prospect Y?) (Note: The answer may not be a whole number; please round to the nearest hundredth) (Note: The numbers may change between questions, so read carefully)Given the following data: E₁ =¥100 = $1.00 Et+1 = ¥100 = $1.00 (one year later} iuaoan = 15% annually ¡u.s. = 10% annually Calculate the future value of a $1,000 investment. If the $1000 is invested in the U.S., the future value is $ (Round your response to two decimal places.)
- Compounding: the accumulation of a sum of money when the interest earned on the sum earns additional interest. Because of compounding, small differences in interest rates lead to big differences over time. Assume that instead of spending $30,000 on your wedding, you only spend $5,000. You use the remaining $25,000 to buy stocks/bonds and you hold them for 40 years. Calculate the Future Value on $25,000: If your portfolio's rate of return is 8% (i = 0.08), Future Value = If your portfolio's rate of return is 6% (i = 0.06), Future Value = In a 200-word paragraph, please summarize the results of your calculations and list three things that you learned from this exercise.Sabrine purchased 4,500 shares of a mutual fund at an offer price of $8.88 per share. Later, she sold the investment for $7.38 per share. During the time she owned the shares, the fund paid a dividend of $0.52 per share. What was her return on her investment? (Round to the nearest tenth.)The COVID-19 pandemic has caused an unprecedented increase in savings in many countries around the world. In the EU, the savings rate of households has jumped from 12.5% to 17%. In 2008-2009, it had moved from 12.5% to 14% (Dossche and Zlatanos 2020). Even if the source of 2020 surge in savings is different from the one of 2008, it is obvious that this increase does not result in more investment and growth. QUESTION: 1. With reference to the paradox of thrift discuss the appropriate approach by the government to get the economy out of economic downturn swiftly
- Suppose that you discount the future hyperbolically. Assume that both B and 6 are strictly greater than zero but strictly smaller than one. At t= 0, you are given the choice between the following three options: a (1 utile at t = 0), b (2 utiles at t= 1), and c (3 utiles at t = 2). As a matter of fact, at t = 0 you are indifferent between a and b and between b and c. (a) Compute B and 6. (b) Suppose, in addition, that at t= 0 you are indifferent between cand d (xutiles at t = 3). What is x?Dana was dating Wade, a wealthy real estate entrepreneur. Wade was much older than Dana and knew he needed to offer something “special” to make her stay. Wade told Dana that if she continued dating him, he would pay her $10,000 a month. Wade paid Dana for two years when suddenly, for no apparent reason, he stopped the monthly payments. Dana stayed with Wade for another six months, but decided enough was enough and left. She wanted the $60,000 she was owed for the six months; Wade refused to pay her. Is Dana entitled to the $60,000?A sales position is offered at a pharmaceutical company with two salary options. Option A would pay an annual base salary of $15,000 plus a commission of 7% on sales. Option B would pay an annual base salary of $30,000 plus a commission of 6% on sales. The equation y 15,000+0.07x models salary Option A and the equation y 30,000+0.06x models salary Option B, where x represents the amount of annual sales and y represents the annual salary in both equations. Determine the annual sales required for the options to result in the same annual salary. The annual sales required would be $ (Type an integer or a decimal)
- COVID-19 brought global economic and financial ramifications that were felt through global supply chains, from raw materials to finished products. Some term it as a black swan event that may finally force many companies, and entire industries, to rethink and transform their global supply chain model. If you are the CEO of a U.S. based company which is heavily dependent on foreign locations for sourcing and manufacturing, how would you make short-term and long-term plans to modify your supply chain model? List and discuss the main considerations or factors that will influence your decision.The Salar de Uyuni basin in Bolivia contains one of the world's largest deposits of lithium. However, this basin can also be used to grow quinoa, one of the region's most important crops, and is the site of considerable tourism. A study estimated the value of mining lithium from this basin to be worth $380 million, quinoa farming to be worth $11 million, and tourism to be worth $27 million. Assume that if the basin is mined that it cannot be used for farming or tourism. The opportunity cost of mining the basin is _____, and (based on these numbers) Bolivia _____ mine for lithium here. -$11 million; should -$38 million; should -$27 million; should -$418 million; should notA certain investment opportunity available to you will double your money in the next six years. You have $2,000.00 to invest, how much will you have in 12 years-assuming the interest rate is guaranteed for the time period?
