1. Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $5


trillion while raising only $4. 5 trillion worth of taxes.


(a) What will be the government's deficit?


(b) If the government finances the deficit by issuing bonds, what amount of bonds will it


issue?


(c) At a 4 percent rate of interest, how much interest will the government pay each year?


(d) Add the interest payment to the government's $5 trillion expenditures for the next year,


and assume that taxes remain at $4. 5 trillion. In the second year, compute the


(i) Deficit


(ii) Amount of new debt (bonds) issued.


(iii) Total debt at end of year.


(iv) Debt service requirement

Answers

Answer 1

The government's deficit, given that it decides to spend $5 trillion while raising only $4.5 trillion worth of taxes, will be $0.5 trillion (5 - 4.5 = 0.5).

To finance this deficit by issuing bonds, the government will need to issue $0.5 trillion worth of bonds.

At a 4 percent rate of interest, the government will pay $0.02 trillion (0.5 x 0.04) in interest each year. Adding the interest payment to the government's $5 trillion expenditures for the next year and assuming that taxes remain at $4.5 trillion, the second-year figures are as follows:

(i) Deficit: $5.02 trillion (5 + 0.02) in expenditures minus $4.5 trillion in taxes = $0.52 trillion
(ii) Amount of new debt (bonds) issued: $0.52 trillion


(iii) Total debt at end of the year: $0.5 trillion (initial debt) + $0.52 trillion (new debt) = $1.02 trillion
(iv) Debt service requirement: 4% of $1.02 trillion = $0.0408 trillion or $40.8 billion

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Complete question:

1. Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $5

trillion while raising only $4. 5 trillion worth of taxes.

(a) What will be the government's deficit?

(b) If the government finances the deficit by issuing bonds, what amount of bonds will it

issue?

(c) At a 4 percent rate of interest, how much interest will the government pay each year?

(d) Add the interest payment to the government's $5 trillion expenditures for the next year,

and assume that taxes remain at $4. 5 trillion. In the second year, compute the

(i) Deficit

(ii) Amount of new debt (bonds) issued.

(iii) Total debt at end of year.

(iv) Debt service requirement


Related Questions

Why can't an advertisement for a sports drink claim it will improve athletic performance?

Answers

Answer:

I need help plzz can u plzz answer my question

As a member of the Board of Cadbury Schweppes would you approve
a bid of more than $ 4 billion for Adams? Why? Why not?

Answers

As a member of the Board of Cadbury Schweppes, I would need to evaluate the specifics of the bid for Adams, considering its strategic value, financial implications, and potential synergies, before deciding whether to approve a bid of more than $4 billion.

Approving a bid of more than $4 billion for Adams would depend on various factors such as the strategic fit of Adams within Cadbury Schweppes' portfolio, the potential growth opportunities offered by Adams' products or markets, the expected financial returns, and the ability to achieve synergies and cost savings through integration.

Additionally, the evaluation would consider the competitive landscape, potential regulatory hurdles, and overall market conditions. Only after a thorough analysis of these aspects can a decision be made regarding the bid approval.

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selected current year-end financial statements of cabot corporation follow. (all sales were on credit; selected balance sheet amounts at december 31 of the prior year were inventory, $50,900; total assets, $209,400; common stock, $89,000; and retained earnings, $39,406.)

Answers

The current ratio for Cabot Organization is around 3.66.

To compute the ongoing proportion, you really want to isolate the organization's ongoing resources by its ongoing liabilities. The ongoing resources are commonly those resources that are supposed to be changed over into cash in no less than one year, while current liabilities are the organization's commitments due inside a similar period.

current ratio = Current Resources/Current Liabilities

For this situation, the ongoing resources and liabilities are as per the following:

Current Resources:

Cash: $10,000

Momentary speculations: $8,400

Money due, net: $33,700

Stock: $32,150

Prepaid costs: $2,650

All out Current Resources = $10,000 + $8,400 + $33,700 + $32,150 + $2,650 = $87,900

Current Liabilities:

Creditor liabilities: $17,500

Accumulated compensation payable: $3,200

Personal charges payable: $3,300

All out Current Liabilities = $17,500 + $3,200 + $3,300 = $24,000

Presently, we can ascertain the ongoing proportion:

Current Proportion = $87,900/$24,000 = 3.6625

Hence, the current ratio for Cabot Partnership is around 3.66.

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Your question is incomplete, probably the complete question is-

Selected current year-end financial statements of Cabot Corporation follow. All sales were on credit: selected balance sheet amounts at December 31 of the prior year were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748. CABOT CORPORATION Balance Sheet December 31 of Current Year CABOT CORPORATION Income Statement For Current Year Ended December 31 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 10,000 8,400 33,700 32,150 2,650 153,300 240,200 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income 448,600 297,250 151,350 98,600 4,100 48,650 19,598 29,052 Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable 17.500 3,200 3,300 Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total liabilities and equity 63,400 90,000 62,800 240,200 Compute the Current ratio.

3. ______ are defined as goods or services that are required for health and safety.

Answers

Occupational Health and Safety are defined as goods or services that are required for health and safety. Information standards are guidelines governing the information that must be provided to consumers when they purchase specific goods.

What is the safety of goods?

A safe product is one that delivers either no risk or a minimum tolerable level of risk, taking into account the product's typical or reasonably foreseeable use and the need to maintain a high level of consumer protection.

Occupational health and safety is a multidisciplinary discipline that deals with all elements of workplace health and safety, with a heavy emphasis on preventing workplace dangers.

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The ____ encompasses the entire telephone system, from the wires that enter homes and businesses to the network centers that connect different regions of a country

Answers

The pstn encompasses the entire telephone system, from the wires that enter homes and businesses to the network centers that connect different regions of a country.

What is pstn ?

Infrastructure and services for public communications are provided by the public switched telephone network (PSTN). The PSTN is the collective name for all circuit-switched telephone networks in use today, whether they are run by global, regional, or local telephony providers. These include phone lines, fiber optic cables, microwave transmission links, cellular networks, communications satellites, and undersea telephone cables. Switching centers connect all of these, enabling communication between the majority of telephones.

Initially a network of fixed-line analog telephone systems, the PSTN is now almost fully digital in its core network and includes mobile and other networks in addition to fixed lines.

The PSTN operates in accordance with ITU-T standards on a technical level. These standards provide seamless network interoperability between various networks in various nations.

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Group Decision Support Systems found contributor anonymity had all of the following benefits to brainstorming exceptA. Full disclosureB. Constructive improvementC. Eliminated Free RidingD. Focus on ideas not authors

Answers

The Group Decision Support Systems found that contributor anonymity had all of the following benefits to brainstorming except for A) Full disclosure.

Anonymity allowed for constructive improvement, eliminated free riding, and focused on ideas rather than authors. However, full disclosure would require revealing the identities of the contributors, which goes against the principle of anonymity. Therefore, full disclosure is not a benefit of anonymity in brainstorming. The use of contributor anonymity in Group Decision Support Systems provides multiple benefits to the brainstorming process, such as full disclosure, constructive improvement, and a focus on ideas rather than authors. However, it does not eliminate free riding.

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determine central ideas what are the two main parts of a cost/benefit analysis? how are they used to make a decision?

Answers

Cost-benefit analysis has two components, as the name suggests. Knowing the cost and comparing the benefit to that cost constitutes this.

What are a cost-benefit analysis's two key components?

Cost-benefit analysis, in general, is totaling up all expenses associated with a project or choice and deducting that sum from the predicted benefits of the project or decision.

What does cost-benefit analysis mean when making decisions?

The process of calculating the advantages of a choice or action, less the expenses involved in that choice or action, is known as a cost-benefit analysis. A cost-benefit analysis includes quantifiable financial measurements, such as money generated or costs avoided as a result of the project's choice.

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You are using a classification model for stakeholders’ analysis that groups the stakeholders based on their level of authority and their level or concern regarding the project outcomes. This is known as:
Group of answer choices
Power/influence grid.
43) Generally, a bid differs from a proposal in that the term:
Group of answer choices
Bid is used when the seller selection decision will be based on price.
Bid is used when technical capability or technical approach are paramount.
Proposal is used when the selection decision will be based on price.
Proposal is used when the project time frame is limited.
Influence/impact grid.
Power/interest grid.
Salience model.
42) A thorough analysis of the ____________ will help identify potential risks to the project.
Group of answer choices
Risk identification checklist based on historical information and knowledge
Project's change control system
Project's mission statement
Project's schedule and budget

Answers

1. You are using a classification model for stakeholders’ analysis that groups the stakeholders based on their level of authority and their level or concern regarding the project outcomes. This is known as Salience model. Therefore, the correct option is D.

2. Generally, a bid differs from a proposal in that the term as bid is used when the seller selection decision will be based on price. Therefore, the correct option is A.

3. A thorough analysis of the risk identification checklist based on historical information and knowledge will help identify potential risks to the project. Therefore, the correct option is A.

1. Salience model is a classification model used for stakeholders’ analysis that groups the stakeholders based on their level of authority and their level of concern regarding the project outcomes. It prioritizes stakeholders according to their power (influence), legitimacy (authority), and urgency (level of concern). The model aids in the identification of the most important stakeholders who require the most attention and engagement. Hence, the correct answer is option D.

2. In general, a bid differs from a proposal in that the term "bid" is used when the seller selection decision will be based on price, whereas "proposal" is used when the selection decision will be based on technical capability or approach. Hence, the correct answer is option A.

3. A thorough analysis of the risk identification checklist based on historical information and knowledge will help identify potential risks to the project. This checklist provides a list of potential risks based on experience from similar projects in the past, which will aid in identifying risks before they occur.

The other options (Project's change control system, Project's mission statement, and Project's schedule and budget) are important elements of project management, but they do not directly assist in identifying potential risks. Hence, the correct answer is option A.

Note: The question is incomplete. The complete question probably is: 1. You are using a classification model for stakeholders’ analysis that groups the stakeholders based on their level of authority and their level or concern regarding the project outcomes. This is known as: Group of answer choices A) Power/influence grid. B) Influence/impact grid. C) Power/interest grid. D) Salience model.

2. Generally, a bid differs from a proposal in that the term: Group of answer choices A) Bid is used when the seller selection decision will be based on price. B) Bid is used when technical capability or technical approach are paramount. C) Proposal is used when the selection decision will be based on price. D) Proposal is used when the project time frame is limited.

3. A thorough analysis of the ____________ will help identify potential risks to the project. Group of answer choices A) Risk identification checklist based on historical information and knowledge. B) Project's change control system. C) Project's mission statement. D) Project's schedule and budget.

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XYZ Title Insurance Ltd. wants to evaluate its labor and
multifactor productivity with a new title-
search svstem. The companv has a statt of 4, each working 8
h/dav (tor a pavroll cost of
$640/day) a

Answers

XYZ Title Insurance Ltd. experienced a single-factor productivity gain of 175% and a multifactor productivity gain of 143.75% after implementing the new title-search system

The single-factor productivity gain can be calculated by dividing the new output by the old input, while the multifactor productivity gain considers both labor and overhead expenses. Given the information provided, let's calculate the gains:

Old output = 8 titles/day

New output = 14 titles/day

Old labor input = 4 staff * 8 hours/day = 32 labor hours/day

New labor input = 4 staff * 8 hours/day = 32 labor hours/day

Old overhead expenses = $400/day

New overhead expenses = $400/day - $300/day = $100/day

Single-factor productivity gain = (New output / Old input) * 100

= (14 titles/day / 8 titles/day) * 100

= 175%

Multifactor productivity gain = (New output / Old labor input) / (Newoverhead expenses + Old labor expenses) * 100

= (14 titles/day / 32 labor hours/day) / (($100/day + $640/day) / $640/day) * 100

= 143.75%

Hence, the single-factor productivity gain is 175% and the multifactor productivity gain is 143.75%. These calculations indicate significant improvements in productivity for XYZ Title Insurance Ltd. with the implementation of the new title-search system. The company was able to process 75% more titles with the same labor input and reduced overhead expenses. This demonstrates increased efficiency and effectiveness in their operations, resulting in higher productivity levels.

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Here is the complete question:

XYZ Title Insurance Ltd. wants to evaluate its labor and multifactor productivity with a new title-search system. The company has a staff of 4, each working 8 h/day (tor a payroll cost of$640/day) and overhead expenses of $400/day. XYZ processes and closes on 8 titles/day. The new title-search system will allow processing of 14 titles/day. Compute single-factor and multifactor gains in productivity. Deduce conclusions on percent increase or decrease of productivity.

a technique for implementing industrial policies that probably worsened the effects of the 1997 crisis wasquestion content area bottompart 1a.directed credit.b.research subsidies.c.export subsidies.d.protection from imports.

Answers

The technique that worsened the effects of the 1997 Financial crisis in implementing industrial policies was directed credit. Hence, option A directed credit Is the correct answer.

Directed credit is a policy that involves the government instructing banks to lend to specific industries or sectors, often at subsidized interest rates.  While this policy may have been implemented with good intentions, it ultimately led to an over-investment in certain industries, particularly those in the manufacturing and real estate sectors. This over-investment created a bubble that eventually burst, leading to the 1997 financial crisis. The crisis was exacerbated by the fact that many of the loans given out through directed credit were made to firms that were not financially sound, which meant that when the bubble burst, these firms were unable to repay their loans. In hindsight, it is clear that the implementation of directed credit was not the answer to solving the industrial crisis in the late 1990s. Instead, a more balanced approach to industrial policy could have been taken, one that focused on supporting a broad range of industries and promoting sustainable growth. Such policies could have included research subsidies and export subsidies, which would have helped firms to develop new technologies and access new markets, as well as protection from imports, which would have allowed domestic industries to compete on a more level playing field.

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whether a contract is bilateral or unilateral depends on what response the offeror( the party proposing the contract) expects from the oferee (the person agreeing or accepting the contract) true or false

Answers

The answer that the offeror—the party proposing the contract—expects from the offered—the party consenting or accepting the contract—determines whether a contract is bilateral or unilateral.

What factors determine whether a contract is unilateral or bilateral?

The number of parties involved in bilateral contracts is one. A single party will form a contract or pledge for a particular or broad group of people under a unilateral agreement. However, in bilateral contracts, a commitment must be negotiated, accepted, and carried out by at least two parties.

Is the nature of a contract—bilateral or unilateral—determined by the reaction that the offeror anticipates from the offeree?

Whether a contract is bilateral or unilateral is determined by the response that the offeror anticipates from the offeree. Explanation: A bilateral contract—often referred to as a promise in exchange for a promise—is one in which the offeror requires a promise from the offeree in order to create a legally binding agreement.

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Risk can be thought of as the possibility of incurring??

Answers

Answer:

Risk can be thought of as the possibility of incurring a loss.

Explanation:

Loss.

. In 2000, KFC® and A&W® restaurants successfully merged because each had a strong

signature product: KFC’s fried chicken and A&W’s root beer floats.

Branding strategy used:

Answers

Answer:

Co-branding/Multi-branding

Explanation:

Multi-branding

Co-branding is a form of branding that connects companies together. Essentially, co-branding is a marketing partnership between two or more businesses.

The rate at which a business increases revenue from sales is

Answers

Answer:

There are only four ways to increase revenue in your business: increase the number of consumers, increase the average transaction size, increase the frequency of transactions per client, and raise your rates.

Explanation:

Transvaginally, an embryo with cardiac activity should be identified when the gestational sac measures ____________ millimeters (mm)

Answers

Transvaginally, an embryo with cardiac activity should be identified when the gestational sac measures 16 to 20 millimeters (mm).

A transvaginal ultrasound is an imaging method that permits your provider to see your pelvic cavity and the organs internal to your pelvis. These organs consist of your cervix, uterus, fallopian tubes, and ovaries.

Pelvic ultrasound may be achieved by the use of one or each of 2 methods: Transabdominal (through the stomach). A transducer is placed on the abdomen with the use of conductive gel. Transvaginal (through the vagina).

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How do you make decisions?

Answers

Answer:

Explanation: Making decisions can be challenging, but there are some steps you can take to make the process easier and more effective:

Identify the decision to be made: Start by clearly defining the problem or situation you're facing.

Gather information: Collect all the relevant information you need to make a decision. This can involve researching, seeking advice from others, or gathering data.

Click this link to view O*NET's Work Activities section for Postsecondary Education Administrators.
Note that common activities are listed toward the top, and less common activities are listed toward the bottom.
According to O*NET, what are common work activities performed by Postsecondary Education Administrators?
Check all that apply.
making decisions and solving problems
operating vehicles
communicating with supervisors, peers, or subordinates
establishing and maintaining interpersonal relationships
repairing and maintaining electronic equipment
drafting, laying out, and specifying technical devices, parts, and equipment

Answers

Answer:

BDE

Explanation:

Answer:

A C D

Explanation:

the author of the text, langhorne, lists a number of warning signs or red flags that managers may be acting ineffectively. these warning signs are easy to identify, are rooted in common sense, and are easy to avoid. group of answer choices false true

Answers

Langhorne, the text's author, provides a list of many warning signals or red flags that suggest managers could be behaving ineffectively. These red flags are simple to spot, grounded in common sense, and simple to avoid. This assertion is true.

In order to recognize and solve any problems that may be compromising their performance, managers should be aware of these and other possible warning indicators.

Some red flags or warning indicators indicating managers may be operating ineffectively may be simple to spot and based on common sense, but this does not always mean that all warning signs are simple to spot and avoid. Depending on the precise warning indicators and the environment in which they are being noticed.

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An investor wants to invest $20,000 but anticipates needing those funds in five years for a business investment. Currently, with inflation rising, the government is expected to take action to push interest rates up to reduce the money supply. Given these conditions, which of the following securities would be the least suitable for this investor who needs a specific amount of money in five years?

a. Zero-coupon bond maturing in 4 years
b. U.S. Treasury bonds maturing in 6 years
c. Corporate bonds maturing in 5 years
d. Zero-tranche CMO with estimated 5 years life

Answers

Answer:

D. Zero-tranche CMO with estimated 5 years life

Explanation:

_____ is a career typically requiring a certificate from a vocational school program. Lawyer Actor Sales clerk Automotive mechanic

Answers

Answer:

The answer is Automotive Mechanic

Explanation:

To start with, a vocational school program also known as vocational training or Career and Technical Education (CTE) and Vocational Education and Training (VET), is any program that provides job-specific technical training for a particular career.

Students enrolled for such programs are given hands-on instructions that can lead to the award of certification. Automotive Mechanic is the best option and right answer for this question because the career requires hands-on experience which can be taught by vocational school programs. Other careers that require vocational school programs are plumbing, wiring,  shoe making among others.

Firefly Company just paid a dividend of $15 per share, but the management expects to reduce the payout by 5 percent per year indefinitely. If you require a return of 10 percent on this stock, what will you pay for a share today?

Answers

Firefly Company has paid a dividend of $15 per share. With a dividend payout reduction of 5 percent per year indefinitely and a required return of 10 % price you would pay for a share today is approximately $126.32.

To calculate the price you would pay for a share today, you need to determine the present value of the expected future dividends. In this case, the dividend payment is expected to decrease by 5 percent each year indefinitely. This means that the future dividends form a decreasing geometric series.

The formula to calculate the present value of a geometric series is as follows:

PV = D / (r - g)

Where:

PV = Present value

D = Initial dividend payment

r = Required rate of return

g = Growth rate of dividends

In this scenario, the initial dividend payment (D) is $15, the required rate of return (r) is 10 percent, and the growth rate of dividends (g) is -5 percent.

Plugging in the values, we can calculate the present value:

PV = $15 / (0.10 - (-0.05))

PV = $15 / 0.15

PV = $100

Therefore, you would be willing to pay $100 for a share of Firefly Company today, considering a required return of 10 percent and the expected future dividend payout.

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For economists, Blank______ goods are those goods, such as machines, used to produce final consumer goods and services.

Answers

For economists, capital goods are those goods, such as machines, used to produce final consumer goods and services. capital goods are long-lasting and durable goods that are used in the production process, while consumer goods are goods that are used for personal consumption.

Capital goods are also considered an investment in the production process, as they are used to increase efficiency and productivity. An explanation for the importance of capital goods is that they help to increase output and lower costs, which can lead to higher profits for businesses and lower prices for consumers.

Capital goods are essential for the production process, as they are the tools and machinery needed to create consumer goods and services. These goods have a significant role in the economy, as they enable businesses to increase their production capacity and efficiency. Capital goods are not directly consumed by the end-users but are used to produce the goods and services that are consumed by them.

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what is the difference between the turbo button and the victim button

Answers

turbo button: A button inside your head and heart. You press it any time you take action to improve your life or the life of others

turbo victim: A button inside your head and heart. You press it any time you give away the power you have to change your life

a victim of phishing would most likely be contacted in which form of these ways?

Answers

Answer:

If you got a phishing email, forward it to the Anti-Phishing Working Group at If you got a phishing text message, forward it to SPAM (7726). Step 2.

Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).

Cain Company reports net cash provided by operating activities of $35,000. It also reports the following

Answers

It can be seen from the solutions given that Cain's net income is $24,000.

Here is the solution:

Net income = Net cash provided by operating activities - Adjustments

= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000

= $24,000

Therefore, Cain's net income is $24,000.

Here is a breakdown of the adjustments:

To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.

A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.

The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.

A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.

A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.

A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.

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Please help me i’ll mark you brilliant

Please help me ill mark you brilliant

Answers

Explanation:

cash alc dr

to capital alc

to sales alc

furniture alc

marcus finds that a check written by a customer and deposited has not yet been posted

marcus finds that a check written by a customer and deposited has not yet been posted

Answers

b is the correct answe

Prospect Y($20, 0.5; $40, 0.5) Justin values Prospect Y at $25 (so, for Justin, CE(Y)- $25) Prospect Z ($15,0.5: $45, 0.5) Which of the following statements is true? O For Justin, EV(Y) > EV(Z) O For Justin, CE(2) $25
O For Justin, U(EV(Y)) > U(EV(Z)) O The information provided by this problem is not sufficient to determine whether Justin is Risk Averse or Risk Loving

Answers

The correct option is “For Justin, U(EV(Y)) > U(EV(Z))”.

Justin values Prospect Y at $25. Therefore, the Certainty Equivalent (CE) of Prospect Y for Justin is $25.CE(Y)-$25 is the utility that Justin assigns to Prospect Y.
Here, we know that Prospect Y has an equal chance of delivering $20 and $40 with 50% probability each. Thus, the expected value (EV) of Prospect Y can be calculated as follows:
E(Y) = ($20 x 0.5) + ($40 x 0.5)
      = $30
For Justin, EV(Y) = $30.
Therefore, Justin prefers an assured payoff of $25 to a 50% chance of receiving either $20 or $40.The second prospect is Prospect Z ($15,0.5: $45, 0.5).
Here, we know that Prospect Z has an equal chance of delivering $15 and $45 with 50% probability each. Thus, the expected value (EV) of Prospect Z can be calculated as follows:
E(Z) = ($15 x 0.5) + ($45 x 0.5) = $30
The expected value of both prospects is the same i.e. $30.
However, Justin’s certainty equivalent for Prospect Y ($25) is higher than its expected value ($30).
This implies that Justin is risk averse. Justin prefers a certain payoff of $25 to the uncertain payoffs of Prospect Y and Prospect Z. Therefore, the correct option is “For Justin, U(EV(Y)) > U(EV(Z))”.

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Graham is hiking a trail that is 512 miles long. He has hiked 358 miles so far.
Which expression shows how many miles he has left to hike? A. 512+58
B. 512+358
C. 512−58
D. 512−358

Answers

The answer is d the entire trail is 512 and he already walked 358 so 512-358

both bond sam and bond dave have 7.1 percent coupons, make semiannual payments, and are priced at par value. bond sam has three years to maturity, whereas bond dave has 20 years to maturity. if interest rates suddenly rise by 2 percent, what is the percentage change in the price of bond sam and bond dave?

Answers

The percentage change in the price of Bond Sam is approximately -5.33% and the percentage change in the price of Bond Dave is -21% given a 2 percent increase in interest rates.

To calculate the percentage change in the price of Bond Sam and Bond Dave given a 2 percent increase in interest rates, we need to consider the bond's duration and its sensitivity to interest rate changes. The duration provides an estimate of the percentage change in price for a given change in interest rates. Bond Sam:

Since Bond Sam has a three-year maturity and makes semiannual payments, it has a total of 6 periods until maturity. We can calculate its Macaulay duration as follows:

Duration of Bond Sam = (1 * 1 + 2 * 1 + 3 * 1 + 3 * 1 + 3 * 1 + 3 * 1) / (1 + 1 + 1 + 1 + 1 + 1)

= 16 / 6

= 2.6667

Percentage change in price of Bond Sam = - (Duration of Bond Sam) * (Change in interest rate)

= - 2.6667 * 0.02

= -0.0533

≈ -5.33%

Bond Dave:

Since Bond Dave has a 20-year maturity and makes semiannual payments, it has a total of 40 periods until maturity. We can calculate its Macaulay duration as follows:

Duration of Bond Dave = (1 * 1 + 2 * 1 + ... + 20 * 1 + 20 * 1) / (1 + 1 + ... + 1 + 1)

= 420 / 40

= 10.5

Percentage change in price of Bond Dave = - (Duration of Bond Dave) * (Change in interest rate)

= - 10.5 * 0.02

= -0.21

= -21%

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imagine you are performing a two-way anova test, and you find a p-value for interaction of 0.07. what is the correct interpretation of this p-value with an alpha level of 0.05? ranking of evidence in a hierarchy from strongest (clinical trials) to weakest (opinion) is also referred to as Market equilibrium works best in a perfect competition market. T Or F Which earthquake was used as an example for liquefaction destruction on the pnsn website? Find the missing sides using special right triangles Explain the difference between Personal Injury Protection (PIP) and Property Damage Liability (PDL) insurance Which group most benefited from the passage of the Sixteenth Amendment?O A. Female suffragistsB. Lower-income workersC. Big business leadersO D. Civil service reformers The height of a golfball hit off a 128-foot hill is modeled by the function h(t) = 16t2 + 32t + 128, where h is height in feet and t is time in seconds. Find the time the golfball takes to reach the ground.6 seconds3 seconds4 seconds5 seconds eBook The real risk-free rate is 2.0% and inflation is expected to be 2.75% for the next 2 years. A 2-year Treasury security yields 6.45%. What is the maturity risk premium for the 2-year security? Ro Locating Liquefaction Potential Liquefaction has the greatest impact when all pore spaces between loose grains are filled with water. The water table separates zones below ground where all the pores are saturated with water from higher zones where some pores are dry. Here, we examine its possible role in predicting damage due to liquefaction. The figure below shows data from a study of liquefaction potential for San Francisco County. It distinguishes areas where bedrock is exposed at the surface from those underlain by unconsolidated sediment, and it shows the depth to the water table in the sediment. Examine the map carefully to locate places where liquefaction has occurred in the past and for clues to why it happened in those locations. (a) Briefly describe how the water table relates to past episodes and locations of liquefaction in San Francisco. Why does it seem important to study the water table when considering the possibility of liquefaction?The map on the left below shows locations susceptible to liquefaction as well as historical liquefaction events in the San Francisco area during the 1906 and 1989 earthquakes. Some of the 1989 events were in the same area as those of 1906, but several new areas were affected. (b) Compare the locations of the 1989 liquefaction events with the water table elevations in the previous diagram. Does the relationship between liquefaction and water table elevation you discovered in question (a) also apply to all of these areas? If not, suggest possible explanations for the difference. ___________________________________________________________________________ ___________________________________________________________________________ (c) Now look at the locations of the 1989 liquefaction events that occurred in places not affected by the 1906 earthquake. (i) Are they randomly distributed throughout the region or restricted to specific locations? Explain.____________________________________________________________________ __________________________________________________________________________ (ii) Are they located in areas of varied susceptibility to liquefaction or in areas with the same level of susceptibility?Explain.________________________________________________________ __________________________________________________________________________ (iii) Compare the 1989 liquefaction sites with the map of shoreline changes on the right below. 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MGT Semiconductor Co. is a medium-sized semiconductor fabrication plant in Mountain View, California. The company has been in business for over 20 years, mainly producing computer chips for auto industry that are sold exclusively through its distribution network across the United States. Through the years, it has been gradually expanding its production capacity and consumer base. However, over the past 9 months, the company has been faced with an unprecedented and unanticipated increase in demand, which has cleared out all its storage facilities and exceeded its manufacturing capabilities. At this time, the demand continues to be extremely high. The company has an existing storage facility specifically designed for long-term storage of unused chips (controlled climate, humidity, dust, etc.), which can be converted to a new production line. The new production line would increase the existing manufacturing capabilities by 50%. However, this would require a substantial investment in remodeling of the facility and purchasing of expensive equipment from a producer in Tokyo, Japan. To proceed with this option, it would be also necessary for MGT Semiconductor Co. to obtain a loan from a bank and hire additional staff. It is estimated that it will take at least 15 months for the new production facility to start producing. MGT Semiconductor Co. leadership is faced with a dilemma. If they dont expand the current capacity, they risk losing the market share to competitors that are more flexible in adapting to higher demand. At the same time, the expansion is very costly and the long-term demand is uncertain. You are hired by MGT Semiconductor Co. as a consultant to help make the right business decision and to come up with an action plan.Part A Question: How would you recommend for MGT Semiconductor Co. to proceed? Should it stay with the same production capacity or increase it as described above? Based on the knowledge acquired in the course, please provide a detailed explanation of the rationale for your recommendation. Please describe potential challenges MGT Semiconductor Co. could be facing as a result of your recommendation. State the challenges and explain how you would recommend MGT Semiconductor Co. to address each of those challenges.Part B Question: As an alternative to internal expansion, MGT Semiconductor Co. was just presented with an option to acquire a small-sized semiconductor company overseas. While this acquisition will allow MGT Semiconductor Co. to increase its existing manufacturing capabilities by 50% in just 4 months, it will be drastically more expensive than converting an existing storage facility to a new production line. Should MGT Semiconductor Co. consider this acquisition project? Please base your recommendation on the analysis of the triple constraint and provide a detailed explanation of the rationale for your recommendation Excluding household and underground production leads to. Lee walks his dog every morning before school. He travels 4 feet per second. Make a table to show how far Lee travels during the first 5 minutes of his walk. What is the area of the shaded region? 32 cm 32 cm 219.75cm * 804 24cm 1024cm #: 900cm find the value of x(words to meet the word thingy)