Consumption Function- The relationship in the economy between consumption and income, other things
Marginal Propensity to consume- The fraction of a change in income that is spent on consumption; the change
in consumption divided by
MARGIN & SHORT WORKSHEET
1. You buy 500 shares at $25 per share. You fund $8,000 with your own money and borrow the
rest of the funds.
a. How much is your margin?
b. Create a T-account for the transaction.
2. Taylor Industries
In this case, Doug just retired at the age of 56. He has received a $150,000 lump sum
retirement bonus and also has saved an additional $150,000 in a 403b retirement plan. He will
receive $2,800 per month from his
Corporate Finance Homework 1
Repair or Buy New
My recommendation for this piece of equipment would repair the old machine. I
recommend repairing the old machine versus buying the new one because of a few reasons. As
it shows in the
1. The exclusion of household production affects the measurement of growth rate for total
output drastically. By excluding household production, the GDPs growth is being
overestimated. Without measuring household production,
RD After Tax
Market Value Weighted
TOTAL MARKET VALUE
Buy or Repair
Recommendation: Repair old
I recommend Repairing the old machine for 3 reasons:
1. Greater net present value, greater value to company
2. Pays back in less time
3. Has a higher internal rate of return
Fundamental analysis is a method to determine
the value of a stock by analyzing the financial
data that is unique to a particular company and
may impact a companys future.
It only considers a company
Chapter 5 &6:
ECON222: Principles of
Cycle: Fluctuations of the
production of output through time.
Aggregate Output The total quantity of
goods and services produced in an
economy in a given period.
1. In July 2001, Kevin died from eating a hamburger. Kevins
mother says, Sometimes it feels like industry was more
protected than my son. What are your thoughts?
Kevin died in 12 days from eating a burger and the mom didnt g
Balance Sheet - Calculating Your Net Worth
Money Market Funds
Other Monetary Assets
A. Monetary Assets
Life Insurance (cash-value)
Cash Value of Annuities
( abT + I +G ) is the system for determining equilibrium income. To find out what
the effect on equilibrium income is from the reduction of taxes we use:
In this formula, a reduction in taxes resu
6 October, 2010
Initial US jobless claim stabilize
By: Shannon Bond
1) Following the month of August, where nearly no new jobs were created,
as president Barrack Obama had promised nearly two months earlier, September
Macroeconomics Study Guide Chapter 6,7,9
Double Counting- The mistake of including both the value of intermediate products and the
value of final products in calculating gross domestic product; counting the same production more
Final Study Guide
Money- Anything that is generally accepted in exchange for goods and services.
Medium of Exchange- Anything that facilitates trade by being generally accepted by all parties in
payment for goods and services.
Macro Vocab 1
Economics- The study of how people use their scarce resources to satisfy their unlimited wants.
Labor- The physical and mental effort used to produce goods and services.
Capital- The buildings, equipment, and human skills used to p
Vocabulary List 2
Ch. 23/ch 9
Consumption Function- The relationship in the economy between consumption and income,
other things constant.
Marginal Propensity to consume- The fraction of a change in income that is spent on
consumption; the change in consu
Macroeconomics Test 2 study guide chapters 4,5,8
Demand- A relation between the price of a good and the quantity that consumers are willing and
able to buy per period, other things constant
Money Income- The number of dollars a person receives p
Macroeconomics Chapters 1-3
Economy- The structure of economic activity in a community, a region, a country, a group of
countries, or the world.
Scarcity- Occurs when the amount of peoples desire exceeds the amount available at a price of
18 October, 2010
Big U.S Banks Hurt by Struggling Consumers
By: Tom Braithwaite, Shahien Nasiripour and Ajay Makan
Three major U.S banks, including Citigroup, Wellsfargo, and JPMorgan Chase, saw
increases in the number of th
Pfizer profits surge on international demand
By: Alan Rappeport
Lipitor, is a drug which is the top selling medicine for Pfizer, the global leader in
pharmaceuticals. Lipitor currently accounts for 20% of the sales for Pfize
Rate on 30-year mortgage below 4pct. For 2nd time
By: Derek Kravitz
Freddie Mac said last week, that 30-year mortgage interest rates hit reached 3.99%
last week, which is only the second time in history in which it as dipped
The Importance of Macroeconomics
Thus far in my educational career, I have enrolled and completed countless classes
revolving around business, finance, and economics. Since high school, I have tried to take