Aggregate expenditure equals the sum of consumption, investment, government spending, and net exports. These are also the components of aggregate demand. The aggregate expenditure model looks at the effects of changes in demand on income (Y), assuming that the price level does not change. Likewise, in the flat or Keynesian portion of the AS curve, the price level will not change when output changes. In an AE model with MPC = 0.80, the government increases spending by $100 million. What will be the increase in equilibrium Y in the Keynesian AE model? Say you have two graphs of an economy: a graph showing the Keynesian model (as discussed in part A, above) and another showing the AD/AS model. In the AD/AS diagram, the AD curve will shift to the right by the amount of the increase in Y predicted by the Keynesian AE model. If the AD curve intersects the AS curve in the flat, Keynesian portion of the AS curve, what will be the increase in real output in the AD/AS model resulting from the $100 million increase in government spending? Continuing the line of questioning from part B, above, now say the AD curve intersects the AS curve where the AS is vertical. What will be the increase in real output in the AD/AS model resulting from the $100 million increase in government spending? If the AD curve intersects the AS curve in the middle section of the AS curve, can you calculate the increase in real output in the AD/AS model resulting from the $100 million increase in government spending? If not, what additional information would you need? In general, what effect does the slope of the AS curve have on the size of the change in real output due to an increase in autonomous expenditure in the AE model? At the flat, horizontal portion of the AS curve an increase in AD will greatly increase output but barely, if at all, affect the price level. At the more vertical portion of the AS cure, an increase in AD will cause a small, if any, increase in output and a large increase in price level.

Answer:

$20,800,000

Explanation:

The formula and computation is shown below:

Value of the firm = {(Firm's current profits) × (1 + firm’s opportunity cost of funds)} ÷ (firm’s opportunity cost of funds - constant growth annual rate)

= {($400,000) × (1 + 0.06) ÷ (0.06 - 0.04)

= $424,000 ÷ 0.02

= $21,200,000

Hence, we recognized all the information which is mentioned in the question.  

The value of the firm just before it pays out current profits as dividends is $20,000,000.

To determine the value of the firm just before it pays out current profits as dividends, we need to calculate the present value of the firm's future profits. The formula to calculate the present value is:

Present Value = Cash Flow / (Discount Rate - Growth Rate)

In this case, the current profits are $400,000 and the annual growth rate is 4%. The opportunity cost of funds is 6%. Using these values, we can calculate the present value:

Present Value = $400,000 / (0.06 - 0.04) = $20,000,000

Therefore, the value of the firm just before it pays out current profits as dividends is $20,000,000.

Answer:

1. Radford is a small company that manufactures automobile bearings. Managers at the company must make decisions on the kind and the cost of equipment to buy - Investments.

2. Chris works for a financial advising firm. he must create a financial plan and come up with a list of securities that his client can invest in. Chris must make decisions regarding the investments that he should recommend to his client to include in his or her portfolio - Corporate Finance.

3. Brandon works for an investment bank and makes decisions about the sale of new common stock by ABCL Inc. - Corporate Finance.

Explanation:

(1) Option no. 1 relates to the decision making with respect to production equipments. This decision making falls into the category of Capital budgeting (fixed assets investing) decisions. These kind of decisions are investing decisions and thereby will fall under investments domain.

(2) Option no. 2 majorly relates to the functioning of important functions by an financial advising firm, which are necessary for its value creation. Hence, the decision will fall under Corporate Finance and not in Capital markets domain, as making a financial plan for portfolio recommendation to clients is the major activity of any Financial Advising firm.

(3) Option no. 3 again relates to the decision making by an investment bank, which is at the heart of its operations i.e. Initial Public Offer or Follow on Public Offer advisory to a firm. Hence, the decision making falls under Corporate Finance.

Mexico is a good example of a high present rate of investment and a low present rate of consumer goods consumption. Thus, option B is the correct option.

Mexico serves as a compelling illustration of a nation experiencing a robust current investment rate juxtaposed against a relatively modest level of consumer goods consumption. The country directs a significant portion of its resources towards expanding industries, infrastructure, and technological advancements, fostering economic growth. This emphasis on investment bolsters its potential for future prosperity.

Simultaneously, Mexico maintains a measured approach to consumer goods consumption, potentially stemming from factors like income distribution and cultural preferences. This unique balance signifies a strategic focus on long-term economic development while managing immediate consumption patterns, offering insights into Mexico's forward-looking economic strategy.

Thus, option B is the correct option.

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Probably the full options are:

A. Germany

B. Mexico

C. United States

D. United Kingdom

China is an example of a country with a high present rate of investment and a low present rate of consumer goods consumption. The government and businesses focus on infrastructure and capital investments instead of consumer goods consumption, resulting in significant economic growth and development.

A good example of a country with a high present rate of investment and a low present rate of consumer goods consumption is China. China is well known for its investment-led growth model, whereby the government and businesses allocate a significant portion of the country's resources to infrastructure, manufacturing, and other forms of capital investment, rather than individual consumer goods consumption. This has resulted in remarkable economic growth and development, albeit with a lower rate of consumption.

The Chinese government encourages this approach to stimulate long-term growth and reduce its dependence on foreign markets. As a result of this focus on investment rather than consumption, citizens may have less purchasing power or consume less, but the overall economy benefits from heightened stability and continuous growth.

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Answer:

1) The monthly payments if the mortgage is 30 years will be $2,270

2)The monthly payments if the mortgage is 15 years will be $3,267

Explanation:

The house is worth 500,000, John pays 100,000 down payment which means that 400,000 payment is left. We need to find out that if the present value of the payment is 400,000 then what will the monthly payments be for 30,000 in order to have a present value of 400,000.

The Present value is 400,000, the interest rate is 5.5% but because the payments are monthly we will divide it by 12 (5.5/12=0.458). The Number of compounding periods will be the number of months in 30 years so N = 30*12=360. The future value is 0 as there is no lump sum payment at the end.

We input the following information in a financial calculator in order to find the the payment.

PV= 400,000

FV=0

N=360

I=0.458

Compute PMT=2,270

Now in order to find the payments for a 15 year mortgage we will replace n=360 with n=15*12= 180.

PV= 400,000

FV=0

N=180

I=0.458

Compute PMT=3,267

Final answer:

To calculate the monthly payment for principal and interest, use the formula for a fixed-rate mortgage. For a 30-year mortgage at 5.5% interest, the monthly payment would be approximately $2,264.33. If John took out a 15-year mortgage, the monthly payment would be different with a shorter term.

Explanation:

To calculate the monthly payment for principal and interest, we can use the formula for a fixed-rate mortgage:

Monthly Payment = (P * r * (1+r)^n) / ((1+r)^n - 1)

where:

Using these values, we can calculate the monthly payment:

Monthly Payment = (400000 * 0.00458 * (1+0.00458)^360) / ((1+0.00458)^360 - 1) = $2,264.33 (approximately)

If John took out a 15-year mortgage instead, the formula would remain the same but with a different value for n.

Answer:

$247,625

Explanation:

Expectation: To compute the amount to be reported in the investment on American Corporation's Financial Statements - December 31st, 2016

Step 1: American Corporation purchases of Short Supplies = $232,500

This represents 25% of the outstanding voting shares of Short Supplies.

Short Supplies net income was $89,000

Therefore, American Corporation's share of net income = 25% x $89,000

= $22,250. This is the reported income as a result of the voting shares bought.

Secondly, since cash dividend was paid (paid before the declaration of the net income), then American Corporation as an investor is also entitled to the 25% of the dividend

Therefore,

The final amount of total investment of American Corporation to be reported in the financial statement is

The value of the initial stock purchased + Share of net Income - Cash dividend due.

= $ 232,500 (original investment) + $22,250 (share of net income) - ($7,125) Cash dividend

= $247,625

Answer:

department or functional area

Explanation:

Three types of strategies are identified in the management system: corporate strategy; functional strategy; of agricultural units

strategy.

1) Corporate strategy - defines perspective development of the enterprise as a whole. It focuses on the mission of the enterprise and serves the ultimate goal of the enterprise - maximizing profit. Choosing the type of economic activity at the level of the corporate strategy, maintaining the long-term competitive advantage of the enterprise; The most important issues, such as the allocation of resources across the strategic areas of the mirror, are addressed by senior managers.

2) The functional strategy of the enterprise is formed by the main functional units in each activity area, we can call these units as departments or functional areas too. Functional strategies are used in the following areas: marketing, production, finance, personnel, investment and innovation. Functional strategy of the enterprise is aimed at deeper study of its corporate strategy (realization of the main purpose of the enterprise) and provision of resources of separate economic units. Functional division managers are involved in the development of strategies for key functional units.

3) Business unit strategy - (business strategy usually serves two purposes - competitive advantage of a specific product and increase of its profitability. Business management in the new region, etc. At this level, managers and managers of business units are involved in the development of strategies, advice and assistance of managers in the development of corporate strategy.

A functional strategy marks the set of actions for each department within a company, aiding in achieving its competition goals. This can involve decisions relating to focus on few products, termed as 'core competency', for better success.

A functional strategy refers to the set of activities that each department within a firm will pursue in order to help the company achieve its competitive goals.

These strategies are part of a larger business plan, focusing on areas like Finance, Marketing, HR, or Operations to improve the overall functionality and performance of the corporation.

For instance, a production department may involve important decisions that define a firm's behavior, like focusing on one or few products, which is sometimes referred to as its 'core competency.' This can lead to more success than firms that try to manage a wide range of products.

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Answer:

D. Venture Capital

Explanation:

Option A is wrong. As the restaurant has been operating for only six months, it is not a public limited company to offer a preferred stock.

Option B is incorrect. Since the restaurant company is new and expanding steadily, issuing common stock will cost them unnecessary expenses.

Option C is incorrect as taking bonds will see them provide another extra expense, interest cost.

Option D is correct. Venture capitalists seek to help those startups which are relevantly new and expanding steadily but nicely. Therefore, It would be an appropriate choice for Beverly to consider to raise that capital.

To raise capital for her restaurant, Beverly could consider seeking investors, applying for a loan, or crowdfunding.

To raise capital for her restaurant, Beverly could consider a few options:

Each option has its pros and cons, so Beverly should carefully consider her goals, financial situation, and long-term plans before making a decision.

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Answer:

The correct answer is letter "C": federal; unitary.

Explanation:

A federal government is the type of national management where the power is divided between a central body and state governments that work connected. On the other hand, a unitary government does not share power among its territories. Governmental decisions are centralized.

Answer:

correct answer is a. planning phase

Explanation:

project have 4 phase of life cycle and they are

so in these 4 phase Projects identified in planning phase because

in planning phase we identifies all type of the work to be done and here project solutions also developed in detail and necessary steps taken for project planned

it cover approx 50% of the whole process

so  here tasks and resource requirement is identified

so correct answer is a. planning phase

Items tagged CR are under CREDIT Column while Items tagged DB are under DEBIT Column

Explanation:

Employee benefits are strategically important for employers because this is a strategy for recruiting and retaining good people to work for your company, as qualified employees will be more productive and will more effectively assist in achieving goals and organizational objectives.

However, offering benefits requires a high cost, because the more benefits the company offers, the more expensive the cost of hiring employees, so it is necessary to have a clear communication strategy with employees about the value and cost of benefits received, so that there is a greater understanding of total compensation.

Employee benefits are strategically important to employers for attracting and retaining skilled employees, incentivizing performance, and meeting legal requirements. These benefits may include health insurance, supplemental pay, retirement and savings plans, and continuous training and education.

Employee benefits are strategically important to employers for many reasons. Primarily, they assist in attracting and retaining a highly-skilled, productive workforce. Specifically, companies that offer the best benefits package and brand successfully attract younger generations, such as millennials, who value a variety of options, including flexible work schedules and continuous training and education. Health Benefits, Supplemental Pay, and Retirement and Savings are key strategic features of employee benefit packages. Employers with more than 50 employees must legally provide health insurance, reinforcing the strategic importance of health benefits. Additionally, employers often offer defined benefits or defined contribution schemes, such as pensions. In such cases, employers are required to contribute a small fraction to the Pension Benefit Guarantee Corporation to protect employee benefits in case of bankruptcy.

Moreover, employers use benefits strategically to incentivize and reward performance, thus boosting employee morale and productivity. Furthermore, such benefits can serve as potent signals employers use to pre-screen candidates, as well as indicators of attributes such as work ethic and perseverance. Therefore, well-crafted employee benefit packages are instrumental for employers in managing their workforce and achieving organizational objectives.

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Answer:

The correct word for the blank space is: Resource scarcity.

Explanation:

Resource scarcity can be defined as the lack of enough materials needed to perform a company's line of production. This problem typically pushes firms to contact suppliers outside their main area of operations so their output cannot be affected. Because of resource scarcity, various economic decisions must be made so a company can allocate resources efficiently.

Answer:

True

Explanation:

Financial managers should manage foreign exchange and political risks by using proper tools and instruments . This deals with (and take advantage of) market imperfections  also benefits from the expanded investment and financing opportunities

Answer: The correct answers are "C. She and her colleagues will cultivate a global perspective and view the entire world as one market. ", "B. The corporate structure will integrate the activities of foreign affiliates. " and "A. Strategy will include finding raw materials and locating production wherever it is most profitable to do so.".

Explanation: If Talia is hired as a manager of a multinational, surely she and her colleagues will have a global perspective and will perceive the entire world as a single market, since it is a fundamental characteristic for the development of a multinational, as well as being in several countries, An optimal strategy would be to find and locate production in the country that implies a lower cost of labor and raw materials.

Also the corporate structure must integrate the activities of foreign subsidiaries to have greater power in the global market.

As a manager in a multinational corporation, Talia can expect to be involved in strategies seeking cost-effective production locations, working with an integrated corporate structure which involves foreign affiliates, cultivating a global market perspective, and the potential for semi-independent operation of different regional segments of the company.

If Talia is hired as a manager at a multinational corporation (MNC), she can expect a number of experiences.

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Answer:

1. Reduces

2. Decrease in

3. Less Quantity

4. Increased level

5. Higher level

Explanation:

The challenge with the monetary policy introduced by the government is that it is a contractionary policy. A contractionary monetary policy fights inflation by reducing the money in supply in order to increase the cost of borrowing.

However, the problem with contractionary policy is that once the demands for goods and services decrease, the price of products will go down to entice people to consume and purchase. Once the price of products go down, the manufacturers are demotivated to produce more, hence production will go down.

Once production goes down, people are laid off work, and firms can no longer employ more leading to a higher level of unemployment.

The challenge therefore is that lowering inflation will lead to increased unemployment due to the ripple effects.

A contractionary monetary policy reduces demand for goods and services, leading to lower prices and less production. This, in turn, increases the level of unemployment. This policy illustrates the trade-off between inflation and unemployment.

When the government sees the economy is overproducing, it may enact a contractionary monetary policy. Doing so involves decreasing the available money in the market. This decision reduces the economy's demand for goods and services, leading to lower product prices. As prices decrease in the short term, firms become discouraged from producing excess goods and services and thus produce fewer goods. Consequently, this leads to an increased level of unemployment. This scenario represents the economic trade-off between inflation and unemployment, essentially meaning lower inflation can lead to higher unemployment.

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Answer:

Joan will pay income tax on the $10,000 she withdrew in 2018.

Explanation:

When withdrawing from traditional retirement account, the following rules apply:

1. Withdrawals before attaining the age of 59.5 years attract a penalty of 10%, along with income tax on the amount withdrawn.

2. Withdrawals after the age of 59.5 years are treated as income, so income tax is paid on it. In this case tax on the $10,000 withdrawn.

3. At age 70.5 and above you must take the Required Minimum Distribution (RMD) from the pension account.

Note: Roth IRA does not attract tax payments for ages 59.5 years and above, unlike traditional IRA that attracts income tax.

RMD payments does not apply for Roth IRA.

Answer:

Semler's early leadership Style was the coercive one. He expected a lot from his employees believe in micromanaging his team. He always do overtime and expects the same from his employees/team as well.

Explanation:

Semler's early leadership Style showed that he wanted immediate success and be bossy in terms of selecting and firing the employees.

Answer:

The correct answer is letter "E": Facilities in advanced nations are moving to less developed countries that have lower environmental regulations.

Explanation:

To reduce costs and avoid strict regulations that could harm their operations, countries move their businesses to developing or underdeveloped countries. Most of the time this is considered an unethical practice because it takes away job opportunities in the country where the operations of the company will be removed and is an easy way to surpass necessary regulations that other countries do not even consider that could bring negative damages to society.

Answer:

Explanation:

Cost of new machine=43750+1880=45630

Annual depreciation=(Cost-Salvage value)/life in years=(45630-5000)/10=4063

Answer:

b. Players maximize their own payoffs.

Explanation:

Nash equilibrium, one of the most important tools of Game Theory, is the name given to players' strategy choices with certain features. According to the Nash equilibrium, each individual should try to do the best he can, taking into account the movements of other individuals with whom he is involved. In other words, the preferences of the individual depend on the preferences of others. In this case, the individual is expected to take an attitude not only in his own interest but also in the interests of others. Each individual should try to do the best he can, by seeing the movements of all the other individuals with whom he has a relationship. Let each player choose one of the actions he has in the game, and let's assume that all players make such a choice. If the action chosen for one player is the best action (in terms of return) that is taken into consideration by the action chosen by other players, and this feature is provided for all players, these actions create a Nash Equilibrium. Players can choose lean actions as well as choose to play multiple actions with a certain probability. Nash Balance is named after the American mathematician John Nash, who made important contributions to the concept of Game Theory. The first person to make an analytically similar observation is a French mathematician named Antoine Augustin Cournot. Cournot observed and detailed this phenomenon for a theoretical market where the two companies simultaneously determined the amount of production. In his doctoral dissertation in 1950, John Nash received the 1994 Economy Nobel Prize, proving that this balance exists in all games where the utility functions of players provide certain features.

Answer:

a. Sansa: 5 daggers per week

   Arya: 10 daggers per week

b. Sansa's opportunity cost of making a dagger:  2 shields

   Arya's opportunity cost of making a dagger: 3 shields

c. Sansa

d. Arya

Explanation:

a. The maximum number of products made in a week is determined by dividing their weekly time capacity with the time demanded for each piece. So, to determine Sansa's maximum number, just divide 30 hrs / 6 hrs = 5. The same applies for Arya and shields too.

b. The opportunity cost is determined as the missed benefit when Sansa/Arya opts for one product. So, when Sansa chooses to dedicate 6 hours of her working time to make a dagger, she misses the benefits of having 2 shields, as she was able to make 2 shields for the same time frame (6 hours). The same applies for Arya.

c. Comparative advantage is determined by comparing the opportunity costs associated with each product and competitor. Since Sansa's opportunity cost in making daggers is lower than Arya's (2 shields compared to 3 shields), Sansa has a comparative advantage over Arya in making daggers.

d. Absolute advantage is determined as the ability of an individual to produce the same (or greater) number of output than the competitor, given the same time frame. It is evident that Arya has an absolute advantage over Sansa, as she can create more shields and daggers than her in the same time frame (30 hrs).

The question involves calculating the optimal allocation of time for Sansa and Arya based on their differing efficiencies in making daggers and shields. Since Arya has a lower opportunity cost for making shields, she should specialize in shields, while Sansa should specialize in daggers.

The question relates to the concept of comparative advantage and opportunity cost in economics, specifically in the area of production possibilities. Sansa and Arya have 30 hours a week to either make daggers or shields. With Sansa taking 6 hours per dagger and 3 hours per shield, and Arya taking 3 hours per dagger and 1 hour per shield, the goal is to figure out how they can best allocate their time to maximize production, considering their different efficiencies.

To determine who should specialize in which task, we compare their opportunity costs. Sansa sacrifices two shields when she makes one dagger (6 hours for a dagger compared to 3 hours for a shield). Arya sacrifices three shields for each dagger she makes (3 hours for a dagger compared to 1 hour for a shield). Hence, Arya should specialize in making shields because she has a comparative advantage in making shields, and Sansa should specialize in making daggers.

If they specialize, Sansa will spend her entire 30 hours making daggers, producing 5 daggers (30 hours / 6 hours per dagger), while Arya will spend her 30 hours making shields, producing 30 shields (30 hours / 1 hour per shield). Answer (b), which states Sansa: 2 and Arya: 3, does not correctly represent their production capabilities based on the given information.

Answer:

$5

Explanation:

Equilibrium is when the quantity demanded equals the quantity supplied.

At $5, quantity demanded = quantity supplied = 6

At the other prices, quantity demanded isn't equal to quantity supplied.

I hope my answer helps you

Answer:

$18,000

Explanation:

To find the Sales Revenue we simply add the $12,000 cash received immediately, and the $30,000 received as partial payment, totalling $42,000.

Then, we simply complete the proposed income statement:

Income Statement for the Month Ended in March 31

Sales Revenue               $42,000

Rent Expense                  $9,600

Wage Expense                $14,400

Net Income                      $18,000

Net Income is equal to Revenue - expenses.

Answer:

The correct answer is letter "A": overstating expenses.

Explanation:

For accounting record-keeping, the company's expenses are not included within the labor direct costs. Expenses refer to all those expenditures a company may incur as a result to handle businesses and pursuing to keep it going. Those transactions are recorded in the income statement.

Answer:

b. gains or losses on fixed assets

Explanation:

Operating activities: It includes those transactions that affect the after-net income working capital. It would deduct the increase in current assets and a decrease in current liabilities, while adding the decrease in current assets and an increase in current liabilities.

It would manage those adjustments in working capital. In addition, the depreciation costs are added to the net income and the loss on the sale of assets is added, while the profit on the sale of assets is deducted

Final answer:

To find Vault-Tec's break-even level of sales, we calculate it as Fixed Costs / (1 - Variable Cost Ratio), with fixed costs of $1,000,000 and a variable cost ratio of 0.75. This results in $4,000,000 in sales needed to break even.

Explanation:

Break-Even Analysis in Business

To calculate Vault-Tec's break-even level of sales, we need to understand that break-even occurs when the total revenue equals the total costs. Here, the total costs include both fixed costs and variable costs. To find the break-even point in terms of sales dollars, we use the formula: Fixed Costs / (1 - Variable Cost Ratio).

Vault-Tec.’s fixed costs are $1,000,000 and the depreciation is $250,000, but since depreciation is a non-cash expense and does not affect the calculation in this context, we will exclude it. The variable costs are 75% of the sales, meaning the Variable Cost Ratio is 0.75. Putting these numbers into the formula gives us:

Break-even level of sales = $1,000,000 / (1 - 0.75) = $1,000,000 / 0.25 = $4,000,000.

Therefore, Vault-Tec would need to achieve $4,000,000 in sales to break even.

This same approach can be applied to any business scenario, like the vacuum cleaner manufacturer mentioned in the provided examples who has to calculate the number of units to sell at a given price to cover her costs. By understanding your costs and setting prices accordingly, a business can plan for the break-even price point and guarantee that its sales cover all expenses.

Answer:

The correct answer is letter "C": General Agreement on Tariffs and Trade (GATT).

Explanation:

The General Agreement on Tariffs and Trade (GATT) is a treaty effective from 1948 that pursues fairness when it comes to international trade by reducing tariffs and that promotes equal treatment among countries. The GATT was replaced by the World Trade Organization (WTO) in 1995 under the same objectives but with more participation of the member nations.

Answer:

a $1 rise in government spending will raise both total spending and Real GDP (assuming prices are constant) by $2.70.

Explanation:

The tax multiplier is generally used to show the multiple at which there is either a decrease or an increase in gross domestic product when there is either an increase or decrease in tax. Therefore, if the tax multiplier is equivalent to '$n' and assuming there is no change in price, there will be an increase of '$n' on the GDP and total spending for every dollar increase in the spending of government.

Answer:

Merchandise inventory 20,388.82 debit

          Note payable              20,388.82 credit

Explanation:

First we calculate the present value of the annuity at 9% discount rate

[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]

C 5,400.00

time 6

rate 0.09

[tex]5400 \times \frac{1-(1+0.09)^{-6} }{0.09} = PV\\[/tex]

PV $26,404.1168

Then, we discount this value by the three year grace period between the purchase and the first payment

[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]  

Maturity  26,404.12

time  3.00

rate  0.09000

[tex]\frac{26404.1168220993}{(1 + 0.09)^{3} } = PV[/tex]  

PV   20,388.8228

Answer:

d. productive efficiency and allocator efficiency but not necessity equity

Explanation:

Centrally planned economy is an system where the central authority e.g the government makes positive economic decisions regarding the production, manufacturing, allocation and distribution of goods and services.