If current output is $40b less than Potential GDP, how much would congress need to decrease taxes by to correct this short-run e

Answer:

A. $880

B. -$752.23

Explanation:

To find the conversion value of the issue, we start with this calculation

The initial step is to compute the Conversion ratio using the following formula

Conversion ratio = Par value of security/ Conversion price

Substituting, we find

Conversion ratio = $1,000/$25

Thus, Conversion ratio = 40

Next, we determine the Conversion value with this formula

Conversion value = Conversion ratio * Conversion price

Substituting gives

Conversion value = 40*$22 per share

Therefore, the conversion value of the issue equals $880

B. Now calculating the Straight bond value of the issue

Using a financial calculator for Present Value (PV)

PMT = 8%*1,000 = 80

N = 12 years

1/Y = 12%

FV = 1,000

Thus, PV = -$752.23

This means the Straight bond value of the issue is -$752.23

Response:

D

Justification:

Factors of production are inputs utilized to create goods or commodities. They include resources necessary for a business to generate profit by manufacturing products, categorized into four types: land, labor, capital, and entrepreneurship.

Answer:

Prof. Finance can withdraw an annual annuity of $ 110,698

Explanation:

Prof. Finance's present value is $1,500,000, which reflects his savings at retirement age 65, so PV= 1,500,000

6% is the interest rate established, so r=6%

Number of withdrawals planned = 25

PMT= $110,698