multiplier imply for the conduct of fiscal policy? 5. In assessing the effectiveness of a fiscal stimulus policy why might the composition of the increased government expenditure and/or the form of the changes in net taxation be important? 6. Suppose the following four-sector Keynesian ‘multiplier’ model: AD = Cp + Ip + G + X - M Cp = Co + c(Y-T) Ip = Io G = Go T = To + tY X = Xo M = Mo + mY where X and M are exports and imports of goods and
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independent testing agency‚ which then selects 25 people with a cholesterol level over 200 to eat their cereal for breakfast daily for a month. The agency should be testing the null hypothesis H0: μ = 10 and the alternative hypothesis B 6. Ha: μ >10. Suppose we are testing the null hypothesis H0: μ = 20 and the alternative Ha: μ 20‚ for a normal population with σ = 5. A random sample of 25 observations are drawn from the population‚ and we find the sample mean of these observations
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share ownership (starting from the 1‚000‚000 founders’ shares? Shares Of founders Percentage of the investors Percentage left Total of Shares 1‚000‚000.00 16.00% 84.00% 1190476.19 Shares to be Issued to Investors 190476.1905 C. Suppose the venture investors don’t buy the business plan predictions and want to price the deal assuming a second round in year 2 of $8‚000‚000 with a 40% return. What changes? Second Round Money Second Round E. Return Money + Retunr Second Round
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common stock on margin at $50 per share from your broker. If the initial margin is 65%‚ how much did you borrow from the broker‚ what is the margin? 2. You purchase 100 shares at $60 per share and margin = 50%. Suppose stock rises to $80/sh (increase of 33%). What is your return? Suppose stock drops to $40/sh (decrease of 33%). What is your return? 3. Investor opens a brokerage account and purchases 300 shares of XYZ at $40 per share. She borrows $4‚000 from her broker to help pay for the purchase
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couch {leader of the team}will tell you your position. Some positions that there are their are: goalie‚ forward‚ middle‚ defender‚ and stopper. And your suppose to kick the ball into the net to the other side. The whole purpose of playing soccer is to let your legs go and be free with your legs‚ and also to have fun. If you’re a forward you’re suppose to make the goals and make the team win. He/she can also pass the ball to the back and make goals. The middle position can go forward and back and is
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of the following questions. While I encourage you to discuss with your classmates‚ you have to write up your own script. Please hand it in to your TA (Miss Jiuqi Zhao) by the due time via her pageon box on the 9th ‡oor of K.K. Leung Building. 1. Suppose that Home and Foreign have the marginal product of labor shown below. Home Foreign Baseball bats 1/6 1 tennis rackets 1/2 1/4 (a) What is the opportunity cost of rackets in terms of bats for the Home country? for the Foreign country? (b) In which
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choose either/or. Problem 17-15 on Distribution to Shareholders Based on Chapter 17 Payout Policy Suppose that all capital gains are taxed at a 25% rate and that the dividend tax rate is 50%. Arbuckle Corporation is currently trading for $30 and is about to pay a $6 special dividend. a. Absent any other trading frictions or news‚ what will its share price be just after the dividend is paid? Suppose Arbuckle made a surprise announcement that it would do a share repurchase rather than pay a special
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Problem 20-6 on Call Options based on Chapter 20 (Excel file included) You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly 3 months’ time. a. If the stock is trading at $55 in 3 months‚ what will be the payoff of the call? • Payoff-max=(50-s) = max (55-40)=15 the Ford owner will gain $15 b. If the stock is trading at $35 in 3 months‚ what will be the payoff of the call? • Payoff-max=(35-s) = max (35-40)=-5 the owners will gain $-5 c. Draw
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zero inflation‚ we have: ∆P ∆Y ∆M ∆V = + − = 0 + 0.045 − 0.03 = 0.015 = 1.5% V P Y M Velocity increases by 1.5% 2. Suppose that an economy has a constant nominal money supply (M )‚ a constant level of real output‚ (Y = 500)‚ and a constant real interest rate (r = 0.05). Suppose that the income elasticity of money demand is ηy = 0.6 and the interest elasticity of demand ηi = −0.2 a. Suppose that Y increases to 525‚ r remains constant at 0.05 and there is no change in the expected rate of inflation. What
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budgeting to sell 2‚500 units of a product at a selling price per unit of $32. The variable cost per unit is $26 and total fixed costs are $5‚000. REQUIRED Prepare a contribution margin income statement and calculate operating leverage. 2. Suppose the company is unsure exactly how many units they will sell. As such‚ their marketing department has provided a worst case scenario where sales would be 1‚500 units and a best case scenario where sales would be 2‚700 units. Assume that the selling
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