Define the term Return on Investment?

Q: According to the table, in which year did buyers of six-month Treasury bills receive the highest…

A: According to Fisher's Equation, Real interest rate= (Nominal interest rate - Inflation).

Q: Explain the difference between the stock variable and a flow variable in economics with one example…

A: According to the given question While analysing in general the economic problems the economics uses…

Q: Define the term Net Investment?

A: Investment: In economics, the term investment refers to the purchase of commodities that will be…

Q: True/False  If the real rate of return on investment is higher in the US than in Canada, capital…

A: Capital flows refers to the movement of money across the countries. When capital flow in th.e…

Q: Suppose a handbill publisher can buy a new duplicating machine for $ 500  and the duplicator has a…

A: In the question, the handbill publisher can buy a new duplicating machine that would help to cost to…

Q: Explain Net present value with the formula.

A: Net Present Value Net present value basically refers to the difference between the current worth of…

Q: What is investment? How is it related to national saving?

A: Investment refers to an action of purchasing assets or goods that are not consumed in the present…

Q: Looking at business fixed investment, elaborate on why investment is negatively related to the…

A: Investments are negatively related rate of interest.

Q: Define and explain the internal rate of return on a new investment?

A: Internal rate of return or IRR is a measure in economics of  capital budgeting parlance and…

Q: Long run real interest rates are expected to increase. How will an accountant and economist view the…

A: An interest rate that has been modified to take inflation into consideration is known as a real…

Q: Define the term Net Income?

A: The monetary benefit or reward earned by an individual or business by producing goods or services,…

Q: Equation for finding the steady state of equilibrium for investment

A: The Solow Growth Model is an exogenous economic growth model that examines changes in an economy's…

Q: What principle would be relevant to the understanding of variation of factors of investment in the…

A: We would be interested in learning more about the various factors of investment in the SR and LR. In…

Q: Define the term Return on Invested Capital?

A: The amount of money which is invested in the business to achieve its goal is called investment…

Q: "Capital is a flow and income is a stock" True/False

A: # If a quantity is being measured at a perticular point of time then it is stock and if a quantity…

Q: Define disposable income

A: Disposable income, otherwise called dispensable individual income (DPI), is the measure of cash that…

Q: What is the impact on the national saving rate if the consumption and government share each increase…

A: Answer in step 2.

Q: Suppose you have 1 million dollars to invest in physical capital (K). The annual return to your…

A: The purpose of investing is to generate income and increase the value of an asset over time. Any…

Q: Describe nonsimple investment?

A: Non simple investment is a type of investment where more than one sign change occurs in the net cash…

Q: True/False and Explain If the real rate of return on investment is higher in the US than in Canada,…

A: True/False and Explain: If the real rate of return on investment is higher in the US than in Canada,…

Q: Explain how higher saving leads to a higher standard of living.

A: In neo classical economics it is assumed that saving is equal to the investment and an economy is at…

Q: Describe the four measures taken for investment?

A: Investment refers to the addition or acquisition of assets with the goal of making income or profit.

Q: Define the term Projected annual net savings?

A: Projected annual savings means the estimated annual cost savings projected to be produced by a…

Q: What is Capital expenditure?

A: Capital expenditure refers to expenditure made by the firms in tangible assets such as land,…

Q: Economists from Funlandia have collected the following information about the economy (all measured…

A: At equilibrium, Y = C+I+G Y = 9+2-0.5r+2.5 12 = 13.5-0.5r -1.5 = 0.5r r = 3% Therefore, real rate of…

Q: Suppose a closed economy is characterized by: Y=12000, G = 3000, T = 3000, I = 5000 - 2000r, C =…

A: Given:Y=12000G = 3000T = 3000,I = 5000 - 2000rC = 500 + 0.5(Y-T)

Q: If Net Investment = 0 in a given year, this indicates that we have neither lost nor gained capital.…

A: If Net Investment = 0 in a given year, this indicates that we have neither lost nor gained capital.…

Q: Suppose that an economy's net investment flow is I(t) = 2t + 10t1/2. Letting K(0) is the initial…

A: Definition:   Capital accumulation is the development in growth through investments or benefits.…

Q: What is the relationship; remember how economist talk about relationships, between the level of…

A: The equilibrium of the national income including the real GDP and the price level would be…

Q: Suppose you purchase a new house for $200 000, making a down payment of 5% and taking out a mortgage…

A: Suppose you purchase a new house for $200 000, making a down payment of 5% and takingout a mortgage…

Q: Suppose investment is a function of income. Explain the impact of an increase in income on the…

A: Investment is key factor that drive up the economic growth of economy. More investment activities…

Q: What is the break even investment

A: The relationship that exists between fixed costs, variable costs, and returns can be studied by…

Q: When we add depreciation to net investment, we arrive at...............

A: Depreciation: The term depreciation refers to the fall in the monetary value of a commodity over…

Q: 28 Assume that a national restaurant firm called BBQ builds 15 new restaurants at a cost of $1…

A: Assume that a national resturant firm called BBQ builds 15 new resturants at a cost of $1 million…

Q: Suppose a handbill publisher can buy a new duplicating machine for $500 and the duplicator has a…

A: The expected rate of return r is calculated as follows: Return = expected Revenue - cost r =…

Q: Define the term short-term investments?

A: The investment is a practice of investing money with the expectation of some future benefit or…

Q: Find the value of output if the given sales is $80 and the change in stock is $15??? National…

A: Generally in the given question, Sales amount is = $80  Change in the stock = $15 Value of output…

Q: Define the term the concept of return on investment?

A: Return on investment measures the performance which is used to evaluate the efficiency of an…

Q: Explain/Discuss Three ways that a reduced rate of interest influences real capital investment.

A: Real capital investment is the sum of money which is given to a company to achieve it business…

Q: Looking at business fixed investment, explain why investment is negatively related to the interest…

A: An asset or object purchased with the intention of producing income or appreciation is referred to…

Q: Hula hoop fabricators cost 100 $ each. The Hi-Ho Hula HOOP Company (HHHHC) is trying to decide how…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: When does the optimal investment schedule shift?

A: The ideal hazardous investment mix is regardless of wealth, non-capital income, age, and eagerness…

Q: The following equations describe an economy: C= 10 + 0.5 Y (Consumption function) I = 190-20i…

A: The IS curve demonstrates the goods market in equilibrium. It reflects the negative/inverse…

Q: Explain three types of capital receipts in an given economy?

A: In simple words we can say that the capital receipts are known as that receipts in which the…

Q: . What is the amount of economic investment that has resulted from BBQ's actions? $ million . How…

A: Here the restaurant chain build 20 new restaurants.

Q: This person earns $1000 of income today and $2000 income next year. Point C represents his…

A: Given, Current income : $1000.Future income :$2000.