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The Economy of Altus Has the Following Parameters

question 176

Essay

The economy of Altus has the following parameters:
Autonomous exports = $290 billion.
Autonomous imports = $75;MPM = 0.20.
(a)What is the balance of trade at an income of $900.
(b)What is the balance of trade at an income of $1,200.
(c)At what income is there a zero balance of trade?


Definitions:

Debt-to-equity Ratio

A measure of how a company's assets are financed, comparing the roles of shareholder equity and debt.

Return on Equity

A metric indicating financial success determined by dividing a company's net income by its shareholders' equity, demonstrating the efficacy of using investments to create increased profits.

Net Profit Margin

A financial metric that shows the percentage of revenue that remains as profit after all operating expenses, interest, taxes, and preferred stock dividends are deducted.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

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