n a particular economy the real money demand function is Md/p = 3000 + 0.1y - 10,000i. Assume that M = 6000, P = 2.0, and pi e = 0.02. a. What is the real interest rate, r, that clears the asset market when Y = 8000? When Y = 9000? Graph the LM curve. b. Repeat Part (a) for M = 6600. How does the LM curve in this case compare with the LM curve in Part (a)? c. Use M = 6000 again and repeat Part (a) for rf = 0.03. Compare the LM curve in this case with the one in Part (a).

Answers

Answer 1

Comparing the interest rates with those in part (a), we see that the interest rates are higher for any given level of output. This implies that the LM curve has shifted to the left.

a. To find the real interest rate that clears the asset market when Y = 8000, we need to solve for i in the real money demand function:

Md/p = M/P = 6000/2.0 = 3000

y = 8000

3000 + 0.1(8000) - 10,000i = 3000

i = 0.09

Similarly, when Y = 9000:

M/P = 6000/2.0 = 3000

y = 9000

3000 + 0.1(9000) - 10,000i = 3000

i = 0.10

To graph the LM curve, we plot the combinations of interest rates and output levels that satisfy the condition that money market is in equilibrium. The LM curve is upward sloping because an increase in income leads to an increase in money demand, which, in turn, requires a higher interest rate to keep the asset market in equilibrium.

b. When M = 6600, the new value of M/P is 3300. We repeat the same steps as in part (a) to find the interest rates that clear the asset market at Y = 8000 and Y = 9000.

For Y = 8000:

3300 + 0.1(8000) - 10,000i = 3300

i = 0.08

For Y = 9000:

3300 + 0.1(9000) - 10,000i = 3300

i = 0.09

Comparing the interest rates with those in part (a), we see that the interest rates are lower for any given level of output. This implies that the LM curve has shifted to the right.

c. Finally, we repeat part (a) with rf = 0.03, which means that the nominal interest rate is 5%. We need to solve for the real interest rate that clears the asset market, given that the inflation rate is 2%.

For Y = 8000:

M/P = 3000

y = 8000

3000 + 0.1(8000) - 10,000(0.03 + 0.02) = 2500

i = 0.05

For Y = 9000:

M/P = 3000

y = 9000

3000 + 0.1(9000) - 10,000(0.03 + 0.02) = 3500

i = 0.06

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Related Questions

What goes into the myPatientCare Outcomes scorecard?

Answers

The outcomes of a patient's care and treatments in a hospital or other clinical or care setting are referred to as patient outcomes. To emphasize what is significant to them, they concentrate on addressing the patient's physical, social, and emotional needs from their point of view.

The outcome statement ought to be patient-focused, precise, and quantifiable. executing the predetermined nursing interventions assisting the client in achieving desired aims; promoting wellness and preventing disease; restoring health; and assisting in coping with functionally altered states.

Outcome criteria are clear, quantifiable, and achievable declarations of goal accomplishment. They are written such that they address the issues of who, what activities, in what setting, how effectively, and when.

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t: 4-21. Naomi Stephenson plans to open a company that will design and manufacture accessories for smartphones. She has read that having a clearly articulated business model will help "all of the elements of her business fit together." Naomi isn't quite sure what that statement means. If Naomi asked you to explain it to her, what would you say?

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Naomi, a business model is essentially the plan or strategy that outlines how your company will generate revenue and make a profit.

It includes things like the target market, the products or services you offer, pricing, distribution channels, and marketing strategies.

By having a clear business model, all the different aspects of your business will be aligned and working towards the same goal. It will help you identify any potential issues or challenges and ensure that everything is in place to make your business successful.

In summary, a clear business model is crucial in providing direction, guidance, and focus for your company.

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in eurolandia pink salmon are farmed to supply the local population with fish. due to an increase in demand for pink salmon the fish farmers increase farming intensity from 80 to 230 kg per year. what impact would this increase have on the population of small wild fish?

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Increasing the farming intensity of pink salmon may have a negative impact on the population of small wild fish in the area. This is because fish farming can lead to increased pollution and disease, which can spread to wild fish populations.

Increasing the farming intensity of pink salmon may have a negative impact on the population of small wild fish in the area. This is because fish farming can lead to increased pollution and disease, which can spread to wild fish populations. Additionally, fish farming may require wild fish to be used as feed for the farmed fish, further reducing the population of small wild fish. However, without additional information about the specific farming practices and environmental conditions in Eurolandia, it is difficult to determine the exact impact on the population of small wild fish.

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dublin inc. had the following common stock record during the current calendar year: outstanding, beginning of year 2,000,000 additional shares issued 6/30 100,000 additional shares issued 9/30 100,000 a 10% stock dividend was paid on december 1. what is the number of shares to be used in computing basic eps?

Answers

The number of shares to be used in computing basic EPS is calculated by adding the outstanding shares at the beginning of the year. The total number of shares to be used in computing basic EPS is 2430000.

The total shares issued during the year, including any stock dividend issued. Starting with 2,000,000 outstanding shares at the beginning of the year, 200,000 additional shares were issued during the year (100,000 issued on 6/30 and 100,000 issued on 9/30).

Then a 10% stock dividend was paid on December 1. This means that 10% of the outstanding shares at that time (2,300,000) were issued as additional shares, resulting in 230,000 shares (2,300,000 x 0.10) being issued.

Therefore, the total number of shares to be used in computing basic EPS is: 2,000,000 + 200,000 + 230,000 = 2,430,000 shares

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process a has fixed costs of $1000 and variable costs of $5 per unit. process b has fixed costs of $500 and variable costs of $15 per unit. what is the crossover point between process a and process b? group of answer choices $9,500 $5,000 50 units 200 units $2,500

Answers

The crossover point between process A and process B is at 50 units. So, the correct option is 50 units.

The crossover point is the point at which the total costs of process a and process b are equal. To find this point, we need to set the total cost equations for each process equal to each other:

Process A: Total Cost = $1000 + $5x (where x is the number of units produced)
Process B: Total Cost = $500 + $15x

Setting these two equations equal to each other and solving for x, we get:
$1000 + $5x = $500 + $15x
$10x = $500
x = 50

Therefore, the crossover point between process a and process b is 50 units. At this point, the total cost for both processes will be equal, and it won't matter which process is used as both will cost the same.

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suppose the federal reserve wants to increase investment demand to offset the reduction in aggregate demand. to accomplish this goal, how much does investment demand need to increase?

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To increase investment demand and offset a reduction in aggregate demand, the Federal Reserve would likely use monetary policy tools, such as adjusting interest rates or increasing the money supply.

The exact amount that investment demand needs to increase would depend on the specific circumstances and goals of the Federal Reserve.

Investment demand refers to the demand for investment goods and services, such as capital equipment, machinery, and buildings, by businesses and individuals. When investment demand increases, businesses and individuals are more likely to invest in these goods and services, which can lead to increased economic growth and job creation.

To calculate the amount of investment demand needed to offset a reduction in aggregate demand, the Federal Reserve would need to consider a variety of factors, such as the size and nature of the reduction in aggregate demand, the current level of investment demand, and the overall state of the economy.

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AMAZON - How did Jeff Bezos use affiliate marketing to kickstart growth at Amazon? *

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Jeff Bezos used affiliate marketing to kickstart growth at Amazon by partnering with other websites to promote and sell Amazon products. This strategy helped Amazon reach a wider audience and drive more sales.

Affiliate marketing is a performance-based marketing strategy where a company partners with other websites or individuals (affiliates) to promote their products or services. In Amazon's case, Bezos recognized the value of partnering with popular websites and blogs to drive traffic to Amazon's website and increase sales.

Through the Amazon Associates program, website owners and bloggers could earn a commission by promoting Amazon products and linking back to Amazon's website. This incentivized affiliates to promote Amazon's products and helped Amazon reach a wider audience.

By using affiliate marketing, Amazon was able to tap into the audience of other websites and blogs, which helped drive more sales and increase brand awareness. Today, Amazon is one of the largest e-commerce companies in the world, and its success can be partly attributed to Bezos' early adoption of affiliate marketing.

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The add-on sales of fries and a drink at McDonald's is an example of which profitability driver? customer acquisition customer retention margin sales per customer

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The add-on sales of fries and a drink at McDonald's is an example of the profitability driver called "sales per customer".

This profitability driver focuses on increasing the average amount of sales per customer, rather than simply acquiring more customers or retaining existing ones. By offering customers the option to add-on fries and a drink to their order, McDonald's is increasing the value of each transaction and ultimately increasing their overall sales per customer. This strategy is a common tactic in the fast food industry, and is an effective way to increase revenue without significantly increasing costs.

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We (Jennie- Tarkey Store, Inc) will pay you (grower) for each head of turkey delivered to and accepted by us based on the following schedule Jan 2010-Dec 2015 $1.00 $1.65 Jan 2016-Dec 2020 Jan 2021-Dec 2025 $1.80 We will furnish and deliver our turkeys to your facility and will provide growing supplies. You agree to provide turkey growing facilities, water, and feed systems, and labor needed. We will pay bonuses, based on the attached bonus payment scale, to those growers whose turkeys weigh above the grower average. a. Marketing contract; formula price b. Marketing contract; window price c. Marketing contract; cost plus d. Production contract: absolute performance e. Production contract; relative performance f. Marketing contract; fixed price :

Answers

The correct answer is e. Production contract; relative performance.

This is because the agreement outlines specific terms and conditions for the grower to provide a certain level of performance in raising and delivering turkeys, and payment is based on the relative performance of each grower compared to the average. The contract also specifies that the grower will provide facilities, water, and feed systems, while the buyer will furnish and deliver turkeys and growing supplies.

What does "production contract" mean?

A production contract is a verbal or written agreement that is executed in accordance with section 202.2 and that specifies how a contract producer will produce a good or offer management services for the production of a good.99 Acts, chapter 169, lines 22–24.

What do you mean by agreement?

An agreement is a statement of consent from two or more parties. It results from an offer and an acceptance and symbolizes the blending of ideas towards a shared goal. Agreement can be demonstrated by words, deeds, and in some circumstances even silence.

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2. Analysis of the Jamaica's Gleanor Competitive environment (current competition and new entrants) This section must address the following: Using four characteristics explain the type of market structure that is associated with this company. Describe three barriers to entry that is likely to prevent competitors from entering the industry. Compare the profit maximizing output, price and profit and efficiency of the company to that of a perfectly competitive market structure. - Is this firm likely to earn a normal profit in the long-run? Justify your answer. Use a demand and supply diagram to illustrate the impact on equilibrium price and quantity if the market becomes more competitive.

Answers

The analysis of Jamaica's Gleaner competitive environment reveals that it operates within an oligopoly market structure. This conclusion is based on four characteristics associated with the company: 1) a small number of dominant firms, 2) product differentiation, 3) high barriers to entry, and 4) interdependence among firms.

Three barriers to entry that are likely to prevent competitors from entering the industry include 1) high capital requirements for establishing a newspaper company, 2) strong brand loyalty for Jamaica's Gleaner, and 3) economies of scale achieved by the existing dominant firms.

Comparing the profit-maximizing output, price, and efficiency of Jamaica's Gleaner to that of a perfectly competitive market structure, the company is likely to have a higher price, lower output, and reduced allocative efficiency due to market power.

However, it is important to note that product differentiation allows Jamaica's Gleaner to maintain a loyal customer base, leading to potentially higher profit margins.

In the long run, Jamaica's Gleaner is likely to earn a normal profit as the firm adjusts its production levels to account for changing market conditions and competitive pressures.

This is due to the fact that even in an oligopoly, firms tend to reach a state of equilibrium where they make just enough profit to cover their costs, including a normal return on investment.

Using a demand and supply diagram to illustrate the impact on equilibrium price and quantity if the market becomes more competitive, we would see a shift in the supply curve to the right, resulting in a lower equilibrium price and higher equilibrium quantity.

This change signifies increased competition driving down prices while offering a greater variety of products for consumers, ultimately benefiting the market as a whole.

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Convert the salary of Mr. A in the year 1930 to dollars in the year 2000 by using the following
information.
a. A’s salary in the year 1930 was $80,000
b. The price level in the year 2000 was 160
c. The price level in the year 1930 was 52

Answers

the salary of Mr. A in the year 1930, when adjusted for inflation, is equivalent to $246,153.85 in the year 2000.

To convert the salary of Mr. A in the year 1930 to dollars in the year 2000, we need to adjust for the changes in the price level between the two years.

First, we need to calculate the inflation rate between the two years, which is the ratio of the price level in the year 2000 to the price level in the year 1930:

Inflation rate = Price level in year 2000 / Price level in year 1930

Inflation rate = 160 / 52

Inflation rate = 3.0769

This means that the overall price level increased by a factor of 3.0769 between the two years.

To convert the salary of Mr. A in the year 1930 to dollars in the year 2000, we need to multiply the nominal salary by the inflation rate:

Salary in year 2000 = Salary in year 1930 x (Price level in year 2000 / Price level in year 1930)

Salary in year 2000 = $80,000 x (160 / 52)

Salary in year 2000 = $246,153.85

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When employers are urged to make up for historical discrimination, they are exercising _______________.

Answers

When employers are urged to make up for historical discrimination, they are exercising favourism.

The Age Discrimination in Employment Act of 1967 essentially mandated that businesses refrain from taking age into account when making hiring and promotion decisions. This was comparable to how the Civil Rights Act prohibited racial discrimination in hiring. At first, the statute was only applicable to applicants who were between the ages of 40 and 70.

Harassment at work committed by supervisors, coworkers, or others because of your genetic information, age (40 or older), national origin, ethnicity, color, religion, sex (including pregnancy, gender identity, or sexual orientation), or sex.  All actions that regard one person less favorably than another due of their age fall under this category.

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Comparative advertising is one form of __________ advertising.
institutional
reinforcement
competitive
pioneering
reminder

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Comparative advertising is one form of competitive advertising.

This type of advertising involves comparing a brand or product to its competitors in order to showcase its superiority. Comparative advertising can be a powerful tool for businesses as it helps them to differentiate their product from others in the market and potentially attract more customers.
In comparative advertising, businesses often highlight features and benefits of their product that are superior to those of their competitors. They may also use visuals or slogans to emphasize the differences between their product and the competitor's product. Comparative advertising can be particularly effective in markets with a lot of competition, as it helps businesses to stand out and gain a competitive advantage.
However, comparative advertising can also be controversial, as it can sometimes involve making negative statements about a competitor. This can lead to legal issues if the claims made are false or misleading. It is important for businesses to ensure that their comparative advertising is truthful, accurate, and not misleading.
Overall, comparative advertising can be a powerful tool for businesses looking to differentiate themselves from their competitors and gain a competitive edge in the market. However, businesses must be careful to ensure that their comparative advertising is truthful and accurate in order to avoid legal issues and negative publicity.

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T/F? The real risk free rate depends on the real growth in the economy and can be affected for short time periods by temporary tightness or ease in the capital markets.

Answers

The given statement “The real risk free rate depends on the real growth in the economy and can be affected for short time periods by temporary tightness or ease in the capital markets” is true.

Real risk free return, it is the rate of return that an investor would expect to earn on an investment with no risk of loss and no impact from inflation.

The real risk-free rate is influenced by factors such as economic growth, which drives the demand for capital and affects interest rates. Additionally, temporary changes in capital market conditions can impact the real risk-free rate over short periods.

Economic conditions, market conditions, and other factors can impact the real risk-free rate, and investors should consider these factors when evaluating investment opportunities.

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salespeople who are used to selling door-to-door may have difficulty working as a b2b salesperson because:

Answers

Explanation:

There are several reasons why salespeople who are used to selling door-to-door may have difficulty transitioning to working as a business-to-business (B2B) salesperson:

Different sales approach: Door-to-door sales typically involve a more direct and aggressive approach, focusing on individual customers and their immediate needs. In contrast, B2B sales require a more strategic and consultative approach, understanding the complex needs of a business and building long-term relationships.

Longer sales cycles: B2B sales cycles are often longer and more complex compared to door-to-door sales, which can involve multiple decision-makers, procurement processes, and contract negotiations. Salespeople accustomed to quick sales cycles in door-to-door sales may struggle with the longer timeline and the need for more patience and persistence in B2B sales.

Knowledge of business processes: B2B sales often require understanding of the specific industry, market, and business processes of the target customers. Door-to-door salespeople may lack the necessary knowledge and expertise in these areas, which can affect their ability to connect with B2B customers and address their unique needs.

Relationship building with businesses: B2B sales often involve building relationships with key decision-makers and stakeholders within a business, rather than individual consumers. Door-to-door salespeople may find it challenging to establish and maintain professional relationships at the business level, as compared to the more personal connections made in door-to-door sales.

Different sales tools and techniques: Door-to-door salespeople may be accustomed to using certain sales tools and techniques that may not be as effective in the B2B sales context. B2B sales may require the use of more sophisticated sales strategies, such as account-based selling, sales funnels, and CRM software, which may be unfamiliar to salespeople with primarily door-to-door sales experience.

transitioning from door-to-door sales to B2B sales can require a shift in mindset, sales approach, industry knowledge, and relationship-building skills. It may take time and effort for salespeople to adapt to the unique challenges and requirements of B2B sales, and additional training and support may be necessary to ensure success in this new sales environment.

if full employment in this economy is 130 million, will there be an inflationary expenditure gap or a recessionary expenditure gap?

Answers

To determine whether there will be an inflationary or recessionary expenditure gap, we need to compare the actual level of output to the potential level of output.

There is a recessionary spending gap when the actual level of output is smaller than the potential level of output. This indicates that the economy is not operating at full potential, and that there are underused resources, such as unemployed labour and idle industries.

If, on the other hand, the actual level of output exceeds the potential level of output, an inflationary spending gap exists. This means that the economy is generating more than it can and that there is an excess of demand for goods and services, which can lead to inflation.

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the term structure of interest rates shows the relationship between: group of answer choices corporate bonds and the federal funds rate. u.s. treasury bills with different maturities. high and low quality corporate bonds. u.s. treasury rates and municipal bond yields. mortgage rates and libor.

Answers

The term structure of interest rates shows the relationship between U.S. Treasury bills with different maturities.

The term structure of interest rates, also known as the yield curve, shows the relationship between the interest rates of fixed-income securities, such as U.S. Treasury bills, with different maturities. It plots the yields of bonds with similar credit quality but different maturities against each other.

A yield curve can take different shapes depending on the prevailing economic conditions. In a normal or upward-sloping yield curve, long-term interest rates are higher than short-term interest rates. In a flat yield curve, the interest rates of bonds with different maturities are similar, while in an inverted yield curve, short-term interest rates are higher than long-term interest rates.

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assume the first two statements are true. all restaurants in japan serve beverages. fanta is a popular soda in japan. do japanese restaurants in the united states serve fanta?

Answers

Based on the given information, it can be concluded that all restaurants in Japan serve beverages, and Fanta is a popular soda in Japan. However, it is not possible to directly infer that Japanese restaurants in the United States serve Fanta based on this information alone.

Japanese restaurants in the United States may offer a variety of beverages to cater to the tastes of their customers, which may include both local and international options. While it is likely that these restaurants might serve popular Japanese sodas such as Fanta, this would depend on factors like customer preferences, availability of the product, and the restaurant's specific menu choices.

To determine if a particular Japanese restaurant in the United States serves Fanta, one would need to inquire directly with the restaurant or review their menu. It is important to consider that the selection of beverages in any restaurant may change from time to time based on factors like demand, supply chain issues, or menu updates.

In conclusion, the given statements do not guarantee that Japanese restaurants in the United States serve Fanta, but it may be a possibility. To confirm, it is best to consult the restaurant's menu or ask the staff directly.

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T/F? The most difficult part of valuing a bond is determining the required rate of return on this investment.

Answers

The given statement “The most difficult part of valuing a bond is determining the required rate of return on this investment” is false. because it is commonly based on factors such as the current market interest rates, credit risk of the issuer, and other relevant market conditions.

The most challenging part of valuing a bond is usually estimating the future cash flows associated with the bond. This includes projecting the bond's coupon payments, if any, and the repayment of the principal at maturity. These cash flows are then discounted back to the present value using the required rate of return to determine the current value of the bond.

Additionally, other factors that can make valuing a bond complex include the bond's unique features such as embedded options (e.g., call or put options), convertible features, and variable interest rates. These features can affect the bond's cash flows and impact its valuation.

Accurately estimating the bond's future cash flows can require careful analysis of various factors and assumptions, making it the most challenging part of bond valuation.

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attribution theory is a theory: a.that proposes that consumers use expectations as a benchmark against which performance perceptions are judged. b.that proposes that people compare their own level of inputs and outcomes to those of another party in an exchange. c.that states that consumers are motivated to act in accordance with their attitudes and behaviors. d.that proposes that consumers look for the cause of particular consumption experiences when arriving at satisfaction judgments. e.that proposes that cultural meaning is transferred to a product and onto the consumer.

Answers

Attribution theory is a psychological theory that proposes that consumers look for the cause of particular consumption experiences when arriving at satisfaction judgments. (option.d)

This theory suggests that consumers will attribute their level of satisfaction or dissatisfaction to various factors such as product quality, price, or brand reputation.

For example, if a consumer has a positive experience with a product, they may attribute their satisfaction to the quality of the product or the brand. Conversely, if they have a negative experience, they may attribute their dissatisfaction to the product's poor quality or a lack of value for the price paid.

This theory is important for marketers to understand because it can help them to identify factors that impact consumer satisfaction and adjust their marketing strategies accordingly.

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In 1950, Congress raised the federal minimum wage to seventy-five cents ($0.75) per hour. The CPI in 1950 was equal to 24, and now it is equal to about 240. What would the 1950 minimum wage be equal to in terms of today's dollars? A. $3.20 B. $7.50 C. $5.30D. $4.10

Answers

The 1950 minimum wage of $0.75 adjusted for inflation using the CPI would be equivalent to $7.50 in today's dollars. Answer: (B) $7.50.

To calculate the equivalent 1950 minimum wage in today's dollars, we need to adjust for inflation using the Consumer Price Index (CPI). The formula to adjust for inflation is:

(Current CPI / Starting CPI) x Starting value = Inflation-adjusted value

Using the information given in the question, we can plug in the values and solve for the inflation-adjusted 1950 minimum wage:

(240/24) x 0.75 = 7.50

Therefore, the equivalent 1950 minimum wage in today's dollars would be $7.50.

So the answer is (B) $7.50.

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dufner co. issued 17-year bonds one year ago at a coupon rate of 6.8 percent. the bonds make semiannual payments. if the ytm on these bonds is 5.4 percent, what is the current dollar price assuming a par value of $1,000?

Answers

The current dollar price of the bonds is $986.91 assuming a par value of $1,000.

To calculate the current dollar price of the 17-year bonds issued by Dufner Co., we need to use the present value formula for a bond.

The formula is:

[tex]PV = \frac{C} {(1 + \frac{r}{n})^{(n*t)}} + \frac{F }{ (1 + \frac{r}{n})^{(n*t)}}[/tex]

Where:
PV = Present value of the bond
C = Coupon payment
r = Yield to maturity (YTM)
n = Number of coupon payments per year (semiannual in this case)
t = Number of years until maturity
F = Face value or par value of the bond

Using the given information:
C = [tex]\frac{6.8*1000}{ 2} = 34[/tex]
r = 5.4%
n = 2
t = 16 (since one year has already passed and the bond has 17 years until maturity)
F = $1,000

Plugging in the values into the formula, we get:

[tex]PV = \frac{(34} { (1 + \frac{0.054}{2})^{(2*16)})} + \frac{1000 }{(1 + \frac{0.054}{2})^{(2*16)})}[/tex]
PV = $986.91

Therefore, the current dollar price of the bonds is $986.91 assuming a par value of $1,000.

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visual communication in marketing is no more important today than it was in the past. select one: true false

Answers

The statement "visual communication in marketing is no more important today than it was in the past" is false.
Visual communication has become increasingly crucial in today's marketing landscape. With the rapid growth of digital media and the constant influx of information.

It has become necessary for marketers to capture the attention of their audience through visually engaging content. Visual elements, such as images, videos, infographics, and graphic designs, help convey messages more effectively and can have a significant impact on consumer perception, decision-making, and brand awareness.
In the past, traditional marketing methods relied more heavily on text-based communication, and the opportunities for visual exposure were limited to print ads and billboards. However, the rise of social media platforms, smartphones, and high-speed internet has greatly expanded the potential reach and impact of visual content.
Today, brands must invest in creating visually appealing content to stand out in a crowded marketplace and effectively communicate their message. As a result, the importance of visual communication in marketing has grown significantly compared to the past.

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ash Receipts from Sales: Alternative Collection Timing.
EX: If TSC collects 80% of credits in the first month after sales, 20% of credit sales in the second month after sale, and all other assumptions are unchanged, budgeted cash receipts follow.

Answers

Based on the given information, the budgeted cash receipts from sales for TSC can be calculated as follows:

Assuming total credit sales in a month = $100

In the first month after sales:
- TSC collects 80% of credits = $80
- Cash receipts from credit sales in the first month = $80

In the second month after sales:
- TSC collects 20% of credits = $20
- Cash receipts from credit sales in the second month = $20

Therefore, the budgeted cash receipts from sales for TSC would be $80 in the first month and $20 in the second month after the sale. It is important to note that these figures are based on the given assumptions and may vary depending on the actual collection timing of TSC.


 Based on the given information, if TSC collects 80% of credit sales in the first month after sales and 20% in the second month after sale, the budgeted cash receipts would be calculated as follows:

For each month, you would calculate cash receipts from sales by adding the cash collected in the first month (80% of credit sales) to the cash collected in the second month (20% of credit sales).

For example, if TSC had $10,000 in credit sales in January, the budgeted cash receipts would be:

- In February: $10,000 x 80% = $8,000 (from January sales)
- In March: $10,000 x 20% = $2,000 (from January sales) + any cash collected from February sales

By using this method, you can calculate the budgeted cash receipts for each month based on the given collection timing.

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riverview company is evaluating the proposed acquisition of a new production machine. the machine's base price is $200,000, and installation costs would amount to $28,000. also, $10,000 in net working capital would be required at installation. the machine will be depreciated for 3 years using simplified straight line depreciation. the machine would save the firm $110,000 per year in operating costs. the firm is planning to keep the machine in place for 2 years. at the end of the second year, the machine will be sold for $100,000. riverview has a cost of capital of 12% and a marginal tax rate of 34%. what is the npv of the project?

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The NPV of the proposed acquisition is $90,814.

This positive NPV suggests that the acquisition is a financially viable project for Riverview. The project is expected to save the firm $220,000 in operating costs over the 2-year period, and the present value of the tax-deductible depreciation expenses and the capital gain from the sale of the machine is $145,690.

The NPV calculation is a commonly used financial metric that takes into account the time value of money and the cost of capital to determine the value of an investment project. In the case of Riverview's proposed acquisition, the NPV is positive, indicating that the project is expected to create value for the firm.

Subtracting the initial investment of $238,000, we can see that the project is expected to generate $90,814 in net cash flows. Therefore, The NPV of the proposed acquisition is $90,814 and Riverview should consider moving forward with the acquisition, as it is expected to create value for the firm.

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6) Larger MPC’s imply larger multipliers. Explain

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The MPC, or marginal propensity to consume, refers to the amount of an additional dollar of income that a household will spend on consumption. A larger MPC means that households are more likely to spend a larger proportion of their income on consumption.

When there is an increase in government spending or investment, this leads to an increase in national income. With a larger MPC, households will consume a larger proportion of this additional income, which leads to an increase in aggregate demand. This increase in demand leads to an increase in output and income, which further increases demand, creating a multiplier effect.

Therefore, larger MPCs imply larger multipliers because the more a household spends on consumption, the more the overall economy is likely to grow. In contrast, a smaller MPC would imply a smaller multiplier effect because households would spend a smaller proportion of their income on consumption, leading to less growth in the economy.

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the third national bank has reserves of $20,000 and checkable deposits of $100,000. the reserve ratio is 20 percent. households deposit $5000 in currency into the bank and that currency is added to reserves. 2.1 how much excess reserves does the bank now have? show your computation.

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The bank now has $5,000 in excess reserves after the deposit of $5,000 in currency by households.

Before the deposit of $5,000 in currency, the bank had reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20%, which means that the required reserves for the bank are 20% of checkable deposits or $20,000 ($100,000 x 20%).

Since the bank already had reserves of $20,000, it had met its required reserves before the deposit of $5,000. Therefore, the entire amount of the deposit can be used as excess reserves.

After the deposit, the bank's total reserves are now $25,000 ($20,000 + $5,000), and its excess reserves are $5,000 ($25,000 - $20,000).

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Question 1 (5 points) An anticipated devaluation of a country's exchange rate would: O have no effect on output as it is anticipated O lead to a permanent improvement in the trade balance O create an initial contraction in output followed by an expansion O create an initial expansion in output followed by a contraction

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An anticipated devaluation of a country's exchange rate would create an initial expansion in output followed by a contraction.

This is because the devaluation makes exports cheaper and imports more expensive, which initially leads to an increase in demand for domestic goods and services. However, over time, the increased cost of imports can lead to inflation and a decrease in overall output.
1. Anticipated devaluation means that people expect the country's currency to lose value compared to other currencies.
2. As a result, domestic producers and exporters increase production and exports, trying to take advantage of the higher revenue in foreign currency before the devaluation occurs. This leads to an initial expansion in output.
3. After the devaluation takes place, the country's currency is worth less compared to other currencies, making imports more expensive.
4. The higher import prices lead to reduced consumption of imported goods, which may cause a contraction in output as demand for domestic goods adjusts to the new exchange rate.

So, the correct answer is: create an initial expansion in output followed by a contraction.

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The ______ sum of squares measures the variability of the observed values around their respective treatment means. a. treatment b. error c. interaction d. total

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The error sum of squares, also known as the residual sum of squares, measures the variability of the observed values around their respective treatment means after accounting for the effect of the treatments. The correct answer to the question is option b, error.  



The error sum of squares is an important component of the analysis of variance (ANOVA), which is a statistical method used to compare the means of two or more groups. ANOVA decomposes the total variation in the data into different sources, including the treatment effect, the error effect, and the interaction effect (if applicable). By partitioning the total variation in this way, ANOVA allows us to determine the extent to which the observed differences between the treatment means are statistically significant, and to estimate the size of the treatment effect.


The error sum of squares is a key measure of the variability in the data that is not explained by the treatments. By understanding and analyzing this source of variation, we can gain insights into the underlying factors that contribute to the observed differences between the treatment means.

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True or False: HR planning may cause a company to redesign jobs or restructure work.

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The given statement "HR planning may cause a company to redesign jobs or restructure work." is true because is one of the first steps in creating an effective human resource management program.

Human resources planning ensures the best fit among laborers and occupations while avoiding work inadequacies or overabundance'. There are four critical stages to the HRP interaction. They incorporate breaking down present work supply, gauging work interest, offsetting projected work interest with supply, and supporting authoritative objectives.

At the point when human asset arranging is finished, it may not be imaginable to utilize such long-haul techniques. Conditions continue to change, and HR can make arrangements based on transient data.

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