Question
1.Your company holds $2 million in cash and $5 million worth of ten-year government bonds at the interest rate of 1.5 percent. This portfolio has
1.Your company holds $2 million in cash and $5 million worth of ten-year government bonds at the interest rate of 1.5 percent. This portfolio has been carefully arranged based on the assumption that the Fed will not raise the interest rates this year. Now, while the financial market participants continue to act on the assumption of no rise in interest rates, you come to believe that the trends in the economy will soon change and the Fed will have to adopt a tighter monetary policy in next couple of months, raising the interest rates on one-year government bonds to 3 percent. Assume that the Fed's decision will not affect the future prospects of your company's input or output markets. If your company does not need to use any part of its cash and bond portfolio mentioned above. What is the best strategy to yield higher value for portfolio
2.What happens when economy's real income rises but its money supply and price level remain unchanged
3.There are three kinds of boxes. The first kind costs $2 each, the second, $3 each, the third, $2 each; the first weighs 1 lb. each, the second, 3 lb. each, the third, 3 lb. each. The first has a volume of 1 cubic feet, the second, 4 cubic feet, the third, 5 cubic feet. If the total cost of the boxes is $18, the total weight of the boxes is 19 pounds, and the total volume of the boxes is 27 cubic feet, how many of each of the three kinds of boxes are there?
4.Should US policymakers be concerned about income inequality
5.Elaborate the shortcomings of GDP
6.Can total expenditures ever be greater than money supply
7.What is the probability of someone out of 12 people know someone in a group of 41000
8.What tax is charged on the sale of goods and services sold?
9.In the Keynesian-cross model, if the MPC equals 0.75, then a $3 billion decrease in taxes increases planned expenditures by ______ and increases the equilibrium level of income by _____
10A machine can be leased for 36 months at a rate of $2,800/month, or purchased outright for $88,000. (If purchased outright, the machine is assumed to have zero value at the end of the 36 months). Using your company's internal interest rate (sometimes known as a hurdle rate) of 18% yr, do you recommend leasing or purchasing the machine?
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