Being that these types of assets are From significant parts of savings, this is a logical argument. 1982 to 1989, the Dow Jones Average went from 884 to 2,509 which drastically increased capital assets’ values. There was an impressive drop in the unemployment rate during Reagan’s administration as well. 17 million new jobs were created and the unemployment rate fell from 9.7% to 5.5% by the time Reagan’s presidential term ended (Niskanen & Moore 1996). The hours worked by working aged adults grew during
This increase in net sales is supported by a decline in cost of sales. Cost of sales declined 0.89% from 6.02% in 2013 to 5.13% in 2014, accounting for 65.25% of the net sales. This is down from 65.43% in the fiscal year 2013. A decline of 0.18% over the two periods. The Second Strength: The current year 2014 gross profit is $27,390 which constitutes 34.75% of sales.
The real wage and rental price of capital also increase by 10 percent. Question 4 (15 marks) a) Public saving equals T-G. An increase in government spending, G, reduces public saving. b) Private saving equals Y-T-C. An increase in government spending does not affect private saving. c) National saving equals Y-C-G. An increase in government spending reduces national saving by an amount equal to the increase in government spending. d) The equilibrium interest rate increases to bring desired investment into equilibrium with the reduced quantity of national saving.
income inequality. Sixty-one percent in this ABC News/Washington Post poll think the wealthgap is larger than it’s been historically. And despite longstanding public concerns about activist government, six in 10 also say the federal government should seek to reduce that differential. The public’s concern is buttressed by a recent Congressional Budget Office estimate that the wealthiest 1 percent of Americans have nearly tripled their incomes since 1979, while the bottom 80 percent of earners have seen their share of the nation’s total income slightly decline. This poll, produced for ABC by Langer Research Associates, finds that 37 percent perceive the wealth gap as “much larger” than it’s been; just 5 percent think it’s smaller.
$10.05 o If the firm borrows $40 of the $100 at an interest rate of 10%, what are the firm's net earnings? $7.37 No financial leverage With financial leverage Sales $200 $1,600 Expenses $185 $185 EBIT 15 15 Interest 0 $4 EBT 15 11 Taxes 4.95 3.63 Net earnings $10.05 $7.37 o What is the return on the owners' investment in each case? Why do the returns differ? Return on equity: $10.05/$100 =10.05% $7.37/$40 = 18.425% The return for b is higher due to the financial leverage use being successful. The reduction of taxes with the financial leverage resulted in a reduction in taxes from the interest expense.
By 1926, those earning an annual income of $1m paid less than a third of the tax they paid in 1921 → More money for the rich. 5. Contributed to a 50% increase in average disposable incomes between 1922 and 1929 6. National income soared from $480 per capita in 1900 to $681 in 2929 → affluence of the era. In addition to lower taxes, it called for spending cuts as a means to balance the budget and eliminate the public debt: 1.
Thatcher’s administration saw and annual percentage growth of 2.7% and a total percentage growth of 69% . Employment plunged from 1.66 million in 1980 to 3.16milllion in 1984 to 2.1million in 1990 and inflation was 6.2% from 1981-1991. Consumer Price Index in the USA went from 47.85% in 1980 to 71.99% in 1989 and in the UK 39.27% in 1980 to 67.67% in 1989. So it can be concluded that both the Reagan and Thatcher governments in terms of economic growth and stability were successful in achieving their objectives. But in terms of public manner the UK experienced much civil unrest under the Thatcher Government and is remembered extensively for this uneasy time.
over the 3-year period from 2003 to 2005. Total assets dropped $1 million, or 3%, but remain near $35 million. The most notable asset change is the $500,000, or 8%, decrease in accounts receivable. However, cash did increase $200,000 which gives the company the opportunity for business investment in the coming fiscal year (“University of Phoenix,” 2006). A positive trend shows that total liabilities have dropped $1.7 million, which is accounted for by a $2 million, or 42%, decrease in long-term debt.
Economic growth increased from a 2.8 percent annual rate in the Carter administration, but this is misleading because the growth of the working-age population was much slower in the Reagan years. Real GDP per working-age adult, which had increased at only a 0.8 annual rate during the Carter administration, increased at a 1.8 percent rate during the Reagan administration. The increase in productivity growth was even higher: output per hour in the business sector, which had been roughly constant in the Carter years, increased at a 1.4 percent rate in the Reagan years. Productivity in the manufacturing sector increased at a 3.8 percent annual rate, a record for
However, the growth rate has been decreasing since then, and is projected to continue decreasing. The United Nations population projections out to 2100 (the red, orange, and green lines) show a possible peak in the world's population occurring as early as 2040. (contributors) The demographic transition is a model and theory that usually occurs in 4 stages describing the transition from high birth and death rates to low birth and death rates that occurs as part of the economic development of a country. All countries undergo a transition during which death rates fall but birth rates remain high. Consequently, population grows rapidly.