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    GDP - Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI).

    1. Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI). (All values are in billions of dollars.) Indicate the components you use in calculating each of your answers. For example, to calculate net ex

    Insurance Rates

    Medical evidence has strongly shown the correlation between smoking and heart disease. The insurance companies have noticed it too. In fact, suppose that they have compiled data that shows the likely claims to be filed by various classes of smokers. To make the analysis simpler, suppose that the typical client for insurance has

    Cost of Debt Formula

    Please include with your response any necessary formula to solve this problem (on a regular calculator, NOT a financial calculator), along with a detailed explanation of how to solve the problem. Royal Jewelers, Inc. has an after-tax cost of debt of 6 percent. With a tax rate of 40 percent, what can you assume the yield on

    Project evaluation-investments, cash flow, NPV, and IRR: Revenues generated by a new fad product are forecast as follows:c. If the opportunity cost of capital is 12%, what is the project NPV?d. What is the project IRR?

    Project Evaluation. Revenues generated by a new fad product are forecast as follows: Year Revenues year 1: $40,000 year 2: $30,000 year 3: $20,000 year 4: $10,000 Thereafter $0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the followi

    Balance of Payments

    Explain where in the U.S. balance of payment an entry would be made for each of the following: a. A Hong Kong financier buys some U.S. Corporate stock. b. A U.S. tourist in Paris buys some perfume to take home. c. A Japanese company sells machinery to a pineapple company in Hawaii. d. U.S. Farmers make a gift of food to

    Formulate the linear programming problem.

    4. A sales manager seeks to optimize her advertising budget. Her goal is to obtain 160 million "Exposures" (readers and/or viewers exposed to an ad for the company). Seeking a younger, affluent audience, the firm would like at least 50 million of the exposures to be persons between the ages of 25 and 45. In addition the firm

    Changes in Government Purchases

    Assume that government purchases decrease by $10 billion, with other factors held constant. Calculate the change in the level of real DGP demanded for each of the following values of the MPC. Then calculate the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion. a. 0.9

    The budget deficits of the federal and state governments

    The President has appointed you to the Federal reserve. Mr. Greenspan is considering what the next move of the Fed should be based on current economic data. He has asked all of the regional members to prepare a written executive summary of the actions, or lack of action, the Fed should consider at it's next meeting. Please prepa

    (Simple Spending Multiplier)

    Suppose that the MPC is 0.8, while the sum of planned investment, government purchases, and net exports is $500 billion. Suppose also that government budget is in balance. a.What is the sum of saving and net taxes when desired spending equals real GDP? Explain. b.What is the value of the multiplier? c.Explain why the mult

    Indifference curve and budget equation

    The task is to use indifference curves and budget constraints to determine which of these two programs to chose. You are to assume that income is equal to $400 per month to spend on long-distance phone service and all other good (D) and that the utility function is U=mD. For each program, calculate the values of m and D that max

    Perfect Competition and Surpluses

    Assume that the market for labor is perfectly competitive, and that authorities institute the following policy: All workers should have health insurance, and the employer should pay for 100% of each worker's insurance policy (assume that the cost of the policy is the same for every worker). Use graphical and intuitive analysis t

    Labor Economics: Explain how the effects of a requirement that firms provide additional safety equipment to each worker in an industry depends on the substituability of capital for labor and the extent to which workers in the industry can find jobs elsewhere.

    Explain how the effects of a requirement that firms provide additional safety equipment to each worker in an industry depends on the substituability of capital for labor and the extent to which workers in the industry can find jobs elsewhere.

    Calculating the level of income using the balanced budget multiplier

    Please help with the following problem. Assume the government raises taxes by $20 billion and at the same time increases government spending by $20 billion. If the marginal propensity to consume (mpc) = 0.9 and everything else stays constant, according to the expenditure approach we can surmise that the level of income will