How would the transaction be treated under a capital budget

Assignment Help Microeconomics

Reference no: EM131442416

Question: Assume the government sells some of the land it currently rents out for grazing. Should the revenues received be counted as reducing the deficit? How would the transaction be treated under a capital budget?

Reference no: EM131442416

Questions Cloud

Accumulate the required amount to buy house of your dreams : You plan to buy the house of your dreams in 13 years. You have estimated that the price of the house will be $77,578 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 6.6..

What is the yield to maturity at a current market price : The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. What is the yield to maturity at a current market price of $790? You would buy th..

Explain why if the economy goes into a downturn : Explain why if interest rates are increased to dampen the economy, the balanced budget amendment might force the government to cut back other expenditures (or raise taxes). More generally, describe the interaction between monetary and fiscal polic..

Determine how the roe and roa would have been affected : Peterson's management has decided to reexamine the company's short-term credit policies. The chief financial officer estimates that reducing the receivables collection period to 78 days would result in a sales decrease of 3 percent. Determine whether..

How would the transaction be treated under a capital budget : Assume the government sells some of the land it currently rents out for grazing. Should the revenues received be counted as reducing the deficit? How would the transaction be treated under a capital budget?

Determine the amount required to settle the debt : Mr. Pitkin bought a farm and promised to pay $5600 in 7 years with 8% simple interest and $9075 in 15 years with 9.25% simple interest. Later, Mr. Pitkin met with the lender requesting to pay $5650 at the end of 5 years and to make a final payment at..

What is the behavioral finance challenge to this hypothesis : What does the efficient market hypothesis (EMH) say about securities prices, their reaction to new information, and investor opportunities to profit? What is the behavioral finance challenge to this hypothesis? Do you personally believe the EMH argum..

What is the value of the lottery : judy wins $1 million lottery. Instead of paying her a lump sum of $1 million today, the government offers her a payment stream of $50,000 a year over 20 years. The first payment will be made today. What is the value of the lottery assuming 5% interes..

What is the present value of the car payments : A car dealership offers you no money down on a new car. You may pay for the car for 3 years by equal monthly end-of-the-month payments of $690 each, with the first payment to be made one month from today. If the discount annual rate is 18.33 percent ..

User Account

All Pages