Which of the following would be an appropriate response of the Federal Reserve to an inflationary gap (real GDP above potential)?

Which of the following options would be most likely to reduce a government’s budget deficit?

The country of Zanibar is facing an annual inflation rate of 12%, which is much higher than its historical average of 3%. Meanwhile, wages have only increased by 4% over the same period. What are the likely effects of this disparity between the inflation rate and wage growth on the average citizen in this country?

If real GDP is significantly above potential (or the economy is growing much faster than normal), why might economic policymakers take actions designed to decrease GDP (or slow economic growth)?

LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant?

You decide to buy a house for a total of $. To get a mortgage loan, you make a 10% down payment, and the bank will lend you the rest. The interest rate quoted for this loan is % APR, and the loan will be paid (and interest compounded) every month, for the next 30 years. How much is the TOTAL monthly payment for this mortgage? Enter your answer in dollars, rounded to the nearest cent (2 decimals), and without the dollar sign (‘$’). For example, if your answer is $123,456.789, just enter 123456.79

A bond offers a coupon rate of %, paid annually, and has a maturity of years. The current market yield is %. Face value is $1,000. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond? Enter your answer as a percentage, rounded to two decimals, and without the percentage sign (‘%’). For example, if your answer is 0.123456, then it is equivalent to 12.35%, so you should enter 12.35 as the answer. Use the minus sign (‘-‘) if the yield is negative.

A bond offers a coupon rate of %, paid semiannually, and has a maturity of years. Face value is $1,000. If the current market yield is %, what should be the price of this bond? Enter your answer in terms of dollars and cents, rounded to 2 decimals, and without the dollar sign. That means, for example, that if your answer is $127.5678, you must enter 127.57

Pettijohn Inc.The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $)   Assets 2016 Cash and securities $  1,554.0 Accounts receivable 9,660.0 Inventories   13,440.0 Total current assets $24,654.0 Net plant and equipment   17,346.0 Total assets $42,000.0 Liabilities and Equity   Accounts payable $  7,980.0 Notes payable 5,880.0 Accruals     4,620.0 Total current liabilities $18,480.0 Long-term bonds   10,920.0 Total liabilities $29,400.0 Common stock 3,360.0 Retained earnings     9,240.0 Total common equity $12,600.0 Total liabilities and equity $42,000.0     Income Statement (Millions of $) 2016 Net sales $58,800.0 Operating costs except depr’n $55,274.0 Depreciation $  1,029.0 Earnings bef int and taxes (EBIT) $  2,497.0 Less interest     1,050.0 Earnings before taxes (EBT) $  1,447.0 Taxes $     314.0 Net income $  1,133.0 Other data:   Shares outstanding (millions) 175.00 Common dividends $   509.83 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 21.7% Year-end stock price $77.69   Refer to the data for Pettijohn Inc. What is the firm’s market-to-book ratio?

A company has $50 million in common stock, $10 million in preferred stock, and $20 million in outstanding bonds. What is the percentage of debt in this firm’s capital structure? Enter your answer as a percentage, without the percentage sign (‘%’), rounded to 1 decimal. For example, if your answer is 0.0789, that’s 7.9%, so just enter 7.9