Assume That Equilibrium GDP (Y) Is 5,000

question 18

Multiple Choice

Assume that equilibrium GDP (Y) is 5,000. Consumption (C) . is given by the equation C = 500 + 0.6Y. No government exists. In this case, equilibrium investment is:

• A) 1,500.
• B) 2,000.
• C) 2,500.
• D) 3,000.

Calculate and interpret the effective annual rate (EAR) of trade credit and bank loans.

Understand and apply the concept of the cash conversion cycle.

Analyze the impacts of different financing and investment policies on a firm's financial position.

Construct and interpret a cash budget.

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