Answer:
Answer explained below
Explanation:
(1)
IS Model:
Y = C + I + G + X - M
Y = 100 + 0.5Y + 100 - 20r [G = X = M = 0]
(1 - 0.5)Y = 200 - 20r
0.5Y = 200 - 20r
Y = 400 - 40r ......(1) [IS Equation]
LM Model:
Money demand (Speculative + Transactions demand) = Money supply
100 - 10r + 0.1Y = 80
0.1Y = 10r - 20
Y = 100r - 200 .....(2) [LM Equation]
(2) When IS & LM intersect, from part (1):
400 - 40r = 100r - 200
140r = 600
r = 4.29
Y = 100r - 200 = (100 x 4.29) - 200 = 429 - 200 = 229
(3)
There will be four regions as explained below:
In region I, there is excess supply in both goods and money market, which puts downward pressure on both interest rate and output.
In region II, there is excess demand in goods market, but excess supply in money market, which puts upward pressure on output & downward pressure on interest rate.
In region III, there is excess demand in both goods and money market, which puts upward pressure on both interest rate and output.
In region IV, there is excess supply in goods market, but excess demand in money market, which puts downward pressure on output & upward pressure on interest rate.
Answer:
The double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Explanation:
Calculatation of the after-tax return on both bonds
1)The double-exempt bond does not pay state or federal income taxes.
After-tax return =
Before-tax return = 4.9%
2)The tax-exempt bond is the state income taxes, but not federal in which the states can decide whether to tax their bonds or not.
Interest Income (100,000 * 5%) 5,000
Less: State taxes at 10% (5,000* 10%) (500)
Tax benefit from deduction of state taxes on federal return (500 * 35%) 175
After-tax Income 4,675
After-tax return = 4,675/100,000 = 4.675%
Therefore the double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Hence the state income tax will be deductible on Juan’s federal tax return and Juan’s federal taxable income will be lower or lesser by $500 which will produces tax savings at his federal marginal tax rate of $500 * 35% = $175.
A balance sheet is an essential way to evaluate for a business. 2. Calculate Assets
Assets, money, investments and products the business owns that can be converted into cash: These are what put companies in the financial positive. A thriving company should have assets that are greater than the sum of its liabilities; this creates value in the company’s equity or stock, and opens up opportunities for financing.
It’s important to list your assets by their liquidity—the facility by which they can be turned into cash—starting with cash itself and moving into long-term investments at the end of the list. For the purpose of an annual balance sheet, you can separate your list between “Current Assets,” anything that can be converted into cash within a year or less, and “Fixed Assets,” long-term possessions that can be sold or that retain value down the line, minus depths and other things.
Answer: I can’t give an exact answer but i can help you get on the right path an experience is The knowledge or skill acquired by experience of carrying out a task or chore over a period of time, Especially that gained in a particular profession by working a position in a job for certain amount of time that you can carry out that procedure independently with out needing instructions or training first
Answer:
The GDP price index for 1984 using 2005 as the base year was 80%
Explanation:
The GDP price index:
X/100 = $16/$20
X = 80%
Therefore, The GDP price index for 1984 using 2005 as the base year was 80%
