Economics Answers

Assume the interest rate fall. Under what circumstance will it lead to a)A large rise in business investment
B) little or no change in business investment

Under what circumstance would you expert a rise in national income to cause a large accelerator effect

Will the ceiling to output be in any way affected by the short run rate of growth of GDP? If so why

Under what circumstances would you expect a rise in national income to cause a large accelerator effect

Will the ceiling to output be in any way affected by the short run rate of growth of GDP. If so, how

The difference between short run and long run in microeconomics

Samsung Aviation is considering purchasing equipment to manufacture a part of the wing fixture for an aircraft. The cost of the system is $5 million with life expectancy of 10 years and annual operating cost of $200,000. Samsung is using a MARR of 12 percent, expecting an annual revenue of $1.5 million for 10 years, and a terminal cash flow of $25,000. Using present worth analysis, is this investment economically justified?

Direct Jet (DJ) has a bond issue with face value of $1,000, coupon rate of 7 percent, with 10 years to maturity. The interest is paid semi-annually and the bond is currently selling at 10 percent discount. Assuming your MARR is 8% compounded semi-annually, is this a good investment?

Because of health awareness many people reduce their consumption of animal oil and increase their consumption of vegetable oil to reduce cholesterol problems. What will happen to demand curve of both products?

how does a fall in the external value of a currency affect supply and demand