Would lower stock price likely to cause decrease in real gdp
"Suppose that stock prices were to fall by 10 percent in the stock market. All else equal, would the lower stock prices be likely to cause a decrease in real GDP? How might they predict a decline in real GDP?"
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Here are the the two scenarios that I have to write about Real-world example # 1- Hiring questionnaire. First test includes knowledge of the company, skills required to perform the job, job requirements, etc. If passed, applicants then move onto
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"Suppose that stock prices were to fall by 10 percent in the stock market. All else equal, would the lower stock prices be likely to cause a decrease in real GDP?
He estimates that the equipment could be sold at the time for 4% of its original cost. Jim uses a 16% discount rate. Would you advise Jim to make this investment? Why or why not? Show your work!
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You expect net income in year 1 and 2 to be $10,000, and at the end of year 2, you know you can sell the machine for $90,000. If the firm has a WACC(weighted average cost of capital) of 12%, what is the Net Present Value of this project?
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