The BLS has two components of their "basket" of goods and services, A and B. In the past three years, consumption of these was: 2017 2018 2019 PQPQP Q Good A10 2011 2012 21 Good B 100 40 100 45 | 105 45 Table 2: Quantity and price of consumption Suppose the BLS surveyed households in 2017 to set up their basket of goods (a) Compute CPI inflation in 2018 and 2019 using the basket of quanti- ties from 2017 as the base. (b) Compute CPI inflation in 2018 using the basket of quantities from 2017 as the base. Then compute CPI inflation in 2019 using the basket of quantities from 2018 as the base. (c) Should you use 2018 goods to weight quantities for the change from 2018 to 2019 or should you use 2019 quantities? Do it both ways, i. e. now compute CPI inflation from 2017 to 2018 using the basket of quantities from 2018 as the base. Then compute CPI inflation in 2019 using the basket of quantities from 2019 as the base. Average this with your answer from before, congratulations, you've discovered "chain-weighting!" (d) Plot the chain-weighted CPI next to the regular CPI year-year per- centage change. Which is faster?

The maximum amount of money that a consumer can charge on a credit card is called the

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

You are thinking of making your mansion more energy efficient by replacing some of the light bulbs with compact fluorescent bulbs, and insulating part or all of your exterior walls. each compact fluorescent light bulb costs $4 and saves you an average of $2 per year in energy costs, and each square foot of wall insulation costs $1 and saves you an average of $0.20 per year in energy costs.† your mansion has 150 light fittings and 3000 sq ft of uninsulated exterior wall. to impress your friends, you would like to spend as much as possible, but save no more than $750 per year in energy costs (you are proud of your large utility bills). how many compact fluorescent light bulbs and how many square feet of insulation should you purchase? how much will you save in energy costs per year? (if an answer does not exist, enter dne.)