PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Chapter 12, Problem 2RQ
To determine

Describe the effects of recession in profit gains.

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After staying virtually flat for about a year and a half, the average lending rate of banks has started to show signs of decline in April after the Bank of Ghana reduced the monetary policy rate the month before. The Summary of Economic and Financial Data (May 2020) published by the Bank of Ghana has shown that average lending rate has finally moved out of its comfort zone to a step downward. Prior to recording 22.38 percent in April, the average lending rate has since the past 17 months (December 2018) not come below 23%.How would banks benefit when interest rates decrease?
You are a junior executive of a new cellular phone carrier called Technologies of the Future (TOF) that competes in the same market as Verizon Wireless, AT&T, and T-Mobile. You are asked to write a professional document that discusses the concepts below. Define Gross Domestic Product (GDP). Differentiate between Real GDP and Nominal GDP. Explain how the GDP of the U.S. may influence the sale of smartphones by TOF. What percentage of the GDP is attributed to the sale of cellular phones (including carrier services) in the United States? Define the Human Development Index (HDI). Explain if the HDI has an influence on the sale of smartphones in the U.S. Which aspect of the HDI might influence the sale of smartphones? Identify the target audience for the sale of smartphones in the U.S.. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
In the tiny country of Tuvalu the economy is sustained by the production of small fishing boats made from local materials, tuna, and copra (from coconuts). Last year Tuvalu produced 800 boats at a cost of $2,000 each but only 500 were sold due to recession at a price of $3,200 each. They produced $5 million worth of copra from their coconuts and consumed $2 million of it locally. The rest was used in the production of coconut oil cream which was exported for a value of $10 million. Based on this information, what was Tuvalu’s GDP for last year?  The GNP of a country is $200 billion, receipts of factor income from the rest of the world are $10 billion, payments of factor income to the rest of the world are $30 billion, and depreciation is $25 billion. What is the GDP and the Net National Product?    Schneider’s Bicycles produced $860,000 worth of custom-made of custom-made bicycles last year and paid $45,000 in taxes. Schneider used $315,000 in parts to assemble the…
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