Assume an economy exists for 3 periods

Assignment Help Business Economics
Reference no: EM131756924

Assume an economy exists for 3 periods. The government's budget balance in period 1 is $150 and the present discounted value of the government's budget balance in period 2 is -$110. If the initial debt is equal to $200, the present discounted value of the government's budget balance in period 3 must be

a. $160
b. -$100
c. -$160
d. $100

Show work.

Reference no: EM131756924

Questions Cloud

Explain situating the psalms : Explain "Situating the Psalms: The Biblical Metanarrative - Explain and defend the Davidic authorship (David as author) of many of the Psalms based on the ESV
How the given factors affect the population growth rate : Discuss how these factors affect the population growth rate in the U.S. Be sure to list at least three factors and provide statistical data in your analysis.
Discuss the unique dilemmas health care organizations face : Assignment: Performance Management and Compensation. Discuss some of the unique dilemmas health care organizations face when creating a compensation system.
Primary deficit is equal : How much does the government owe at the start of period 2 if the primary deficit is equal to $25?
Assume an economy exists for 3 periods : The government's budget balance in period 1 is $150 and the present discounted value of the government's budget balance in period 2 is -$110.
Changes in literature and art : The spread of Buddhism in China brought changes in religious ideas and practices, changes in literature and art, and changes in the values and daily lives
Prices and output of three goods for years : Computers, DVDs, and Pizzas. The table below shows the prices and output of the three goods for the years 2014, 2015, and 2016.
What accommodations could have been made for ms doris : Should Doris's condition be considered a disability? If so, what, if any, accommodations could have been made for Ms. Doris?
Relationship between marginal propensity : Describe the relationship between marginal propensity to consume (MPC) and multiplier (m).

Reviews

Write a Review

Business Economics Questions & Answers

  Elucidate decrease in aggreage demand will lead to

If combination of rational expectation and perfectly competitive markets , a decrease in aggreage demand will lead to? A. A small decrease in real GDP B. No change in real GDP C.

  Calculate the coefficient of price elasticity

Calculate the coefficient of price elasticity (midpoints approach) for Goldsboro's supply.

  Qapex corporation has an equity cost of capital of 144 and

q.apex corporation has an equity cost of capital of 14.4 and a debt of 6 and the firm maintains a debt equity ratio of

  Focused on how banks create money

We have focused on how banks create money. I spoke to a banker the other day; he assured me that he did not create money. In fact, he stated that all he did was provide service to the community by lending whatever funds were available to the local me..

  Despite the fact that the cost of serving these meals

Respond to the following question with at least three well composed paragraphs: Restaurants typically charge much higher prices for dinner than for lunch, despite the fact that the cost of serving these meals is about the same. Why do you think this ..

  Present discounted value of the cost of the car

Elucidate what is the present discounted value of the cost of the car if you use GM's interest-free financing

  Which country has higher steady state income per capita

Consider two countries ‘Milkie’ and ‘Cookie’. The two countries have identical per capita production function, y = Ak0.5, with initially the same level of technology, A = 1. Which country has a higher steady state income per capita? Determine the ste..

  Ecide to adopt fixed exchange rate system

Imagine that Canada, the United States, and Mexico decide to adopt a fixed exchange rate system. What would be the likely consequences of such a system for (a) international businesses, and (b) the flow of trade and investment among the three countri..

  Recommend that moody downgrade iceland

If you were a Moody's analyst in May of 2008, would you recommend that Moody's downgrade Iceland's Aaa soverign-debt rating? Why? Why not?

  Developments would affect the supply of money

Tell how each of the following developments would affect the supply of money, the demand for money, and the interest rate.

  Prices-availability of products and political relations

Research a trade barrier that is imposed on the U.S. by a foreign country, and discuss how this restriction affects the following: (1) prices, (2) availability of products, and (3) political relationships between the U.S. and that country. Finally, e..

  Paper or metallic currency will disappear entirely

Even though the use of checks lower transaction costs when compared to the use of paper currency, it is unlikely that the use of paper or metallic currency will disappear entirely. Why?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd