Q: Eastlandia's GDP in 2021 is $18229. Government budget deficit in 2021 is $64.2. Government debt at…
A: When government spending is larger than taxes, then the government budget is in deficit. When…
Q: H6-1 The Affordable Care Act (Obamacare) has changed the health care environment in America. Pick…
A: The affordable care Act or also known as Obamacare has created a huge effect on the health care…
Q: Consider the following game where firms 1 and 2 have three strategies available, A, B and C. Firm 2…
A: Given information
Q: Briefly explain why quantifying sk is important to decision making Why is it important to quantity…
A: Risk refers to probability of occurrence of unexpected event.
Q: Using the table below: Calculate nominal and real GDP in 2018 assuming the base year is 2018.…
A: Gross domestic product is the total market value of goods produced domestically during the year.
Q: The average household income in the United States in 1975 was $13,800 and Consumer Price Index was…
A: A consumer price index (CPI) is a price index, the price of a weighted average market basket of…
Q: Find the Nash equilibrium of the following modified Rock-Paper-Scissors game: • When rock (R) beats…
A: The Nash equilibrium is a notion in game theory that states that the best outcome of a game is one…
Q: Is it ethical to “pay” people with trade-offs for access to their lives and minds?
A: In economics, the trade-off between two or more alternatives is the basic concept to understand and…
Q: In most markets, independents are the most common form of retailer. Why is this the case?
A: There are various types of market where Retailer , wholesale sale their products either homogeneous…
Q: Clancy has $4800. He plans to bet on a boxing match between Sullivan and Flanagan. He finds that he…
A: Total money=$4800
Q: Jack is the owner of the only local bar in a small town.He sells whiskey in one-ounce glasses. For…
A: We have Burt and Jack's consumers over here. However, while these consumers appear to be the same,…
Q: Explains it correctly Q)Elasticity of demand and supply is both 1.23. Will the consumers pay more…
A: Price elasticity of demand and supply are used to determine the change in quantity demanded and…
Q: what are the advantages of automation in a mixed economy?
A: The set of tools that are being designed in order to perform tasks that are known to be repetitive…
Q: If Full employment GDP is greater than equilibrium GDP, the economy is facing
A: Full employment GDP is the maximum level of GDP that can be attained in the long run. Equilibrium…
Q: Justify teachings of property law to students of economics
A: Private property refers to the ownership of resources by private individuals without any government…
Q: What are the four determinants of the demand of the Canadian dollar?
A: The urge to hold financial assets in the form of money is referred to as money demand. These…
Q: I need help with these two. True or false questions. Fiscal policy is the set of policies that…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A typical firm in long-run equilibrium in an industry with identical firms has a cost function given…
A: In the long run, firms produce at minimum efficient scale where production takes place at minimum…
Q: a. Optimal output b. Optimal price c. Total revenue
A: Given: In short-run: MC=ATC Note: Due to multiple subparts being posted, the first three subparts…
Q: Softco is a software company that sells a patented computer program to businesses. Each business it…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 8. Economists have argued that an Earned Income Tax Crodit is preferable to an increase in the…
A: When an economist analyzes some issue that will affect or affect the economy then they may analyze…
Q: What assumptions are necessary for supposing that individual preferences can be inferred and valued…
A: Consumer preference are the choice for commodities or consumption which consumers make. The choices…
Q: Quantity of Resort Units Marginal Capacity Cost Marginal Operating Cost Peak Marginal Revenue…
A: Given: Quantity of Resort Units Marginal Capacity Cost Marginal Operating Cost Peak Marginal…
Q: A monopoly is operating at a quantity where average total cost is $70, marginal revenue is $50, and…
A: In a monopoly, a firm maximises profit at a point where marginal revenue is equal to marginal cost.
Q: One of the following statements about the theory of economic games is not correct. Select the one…
A: Game theory basically refers to the study of how interacting decisions of economic actors generate…
Q: A monopolist’s demand function is given by D(p) = 90 − 2p. This monopolist is facing a cost…
A: D(p) or y = 90 − 2p p = 45 - 0.5y C(y) = (1/2)y2 + 600 TR = p*y TR = 45y - 0.5y2
Q: Inflation Unemployment If the Phillip curve shows that unemployment is low and inflation is high in…
A: The Phillips curve depicts the inverse relationship between the inflation rate and the unemployment…
Q: 13. In which market the Peak-Load pricing Model is usually used? a. rail b. airport c. electricity…
A: Peak load pricing is a concept used by producer to earn more profits. At the times of peak demands,…
Q: What are the predictions of economic theory regarding the relationship between human capital and…
A: Human capital means skilled labour , professional individual , knowledgeable individual with great…
Q: In the short-run, a tax increase Select an answer and submit. For keyboard navigation, use the…
A: Whren the government follows contractionary fiscal policy, the higher tax will result in income to…
Q: Solve it correctly
A: The elasticity of demand is the ratio of percentage change in quantity demanded to the percentage…
Q: Identify the major role of stores management to economic development. 3. Comment on Stock…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Q: A monopolist's demand function is given by D(p) = 90 – 2p. This monopolist is facing a cost…
A: D(p) or y = 90 − 2p p = 45 - 0.5y C(y) = (1/2)y2 + 600 TR = p*y TR = 45y - 0.5y2
Q: Then, looking at the data in each of the following schedules, label the corresponding schedule…
A: Demand schedule is a table showing the quantity of a commodity that consumers are willing and able…
Q: 12. Explain in details the model graph in the North West Government
A: The graph show the AD/AS model, where the short run equilibrium is at point E1 where SRAS is equal…
Q: Small businesses are facing increasing challenges as the fourth wave of the pandemic looms. New…
A: The current state of the South African corporate landscape, as well as a company plan for mitigating…
Q: explain wheather or not you agree with the following statement" A company has R500 million in a…
A: Economic capital is a measure of risk in terms of capital. More specifically, it's the amount of…
Q: Consider a firm that produces two commodities X and Y; the cost function is C(X,Y) where X and Y are…
A: Subadditivity simply means that it is less expensive to produce the same level of output when only…
Q: Draw supply and demand diagrams for market A for each of the following. Then use your diagrams to…
A: since you have asked multiple questions and according to policy we can solve only 1 question and for…
Q: Price Quantity Price Quantity Car $100 400…
A: P2015 Q2015 P2017 Q2017 P2018 Q2018 Car 100 400 130 420 150 450 Rice 25 2000 30 2005 32 2100…
Q: A time-sharing condominium firm offers prizes to people who visit its project and listen to a…
A: Compound interest is the interest forced on a credit or store sum. It is the most normally involved…
Q: The statements given reflect either Micro or Macroeconomic issue. indicate in each case which you…
A: Microeconomics is the study of households and firms. It is called micro because we have a lot of…
Q: If the government charges an emissions tax of $f per unit, the resulting total social cost will be…
A: externality is defined as the consumption or production done by any party, which effects the third…
Q: Is the following statement true? "5 bidders with private values uniformly distributed between 0 and…
A: In-game theory, symmetric equilibrium is an equilibrium where all players utilize a similar…
Q: What do you think will happen to the value of the Canadian dollar in 2022? Why?
A: Canada's dollar will strengthen more in 2022 than previous years as oil prices climb up and it will…
Q: 1.) During the early months of the pandemic in 2020 a.) the price elasticity of demand for some…
A: When talking about initial pandemic situation, it can be seen that there was a high fluctuations in…
Q: (d) Assume a 16 year old named William Gates writes a computer program in his garage. The software…
A: Gross domestic product is the total value of goods and services that are produced in the economy in…
Q: What is a Strategic Issue? How might we go about identifying a strategic issue? Consider how an…
A: A strategic issue is any unsolved problem that requires attention in order to promote the…
Q: Prove that Cov(a1X + b1, a2Y + b2) = a1a2Cov(X,Y).
A: We are required to prove that:- Cov(a1X+b1, a2Y+b2)=a1a2Cov(X,Y) Please find the images attached…
Q: in détermining the long-run profit potential in mono competition is: Lutfen birini seçin: O a the…
A: Monopolistic competition describes an industry in which a large number of enterprises compete for…
Step by step
Solved in 2 steps
- Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed rate of interest?Say that a bond pays $12 in interest and has a current price on secondary markets of $132. Then the current yield on this bond is Select one: a. 12 percent. b. 11 percent. c. $12. d. 9 percent.Rework part (f), assuming that Annie holds the bond for 10 years and sells it when the required return is 7.0%. Compare your finding to that in part (f), and comment on the bond's maturity risk. PV= 1,000 N=10 I/Y= 7% Assume that Annie buys the bond at its current price of $983.80 and holds it until maturity. What will her current yield and yield to maturity (YTM) be, assuming annual interest? After evaluating all of the issues raised above, what recommendation would you give Annie with regard to her proposed investment in the Atilier Industries bonds?
- d)Assume that all the information given previously is the same and the defaultrisk premium for corporate bonds rated AAA is 1.5 percent, whereas it is4 percent for corporate bonds rated B. Compute the interest rates onAAA- and B-rated corporate bonds with maturities equal to one year, twoyears, three years, four years, five years, 10 years, 20 years, and 30 years.What is the discount yield, bond equivalent yield, and effective annual return on a $7 million commercial paper issue that currently sells at 98.75 percent of its face value and is 122 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your percentage answers to 3 decimal places. (e.g., 32.161))Making the assumption of no compounding interest , suppose you purchase a perpetuity bond from CosoNostra Pizza Inc. for $ 4,000 with an annual coupon rate of 3 % . Specify all answers to the nearest dollar , and assume a discount rate equal to that of the current interest rate . Changes in the economy push interest rates up from 3 % to 5 % . For how much can you sell your bond following this change in market interest rates ?
- A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a 7 percent promised YTM, and 10 years to maturity. What is the bond's duration? If interest rates are expected to rise by one half of a percent, by how much would you expect the price to change using the modified duration equation? How much would you expect the price to change using convexity? You need to use the bond duration and convexity calculator to answer this question.How much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 5%? You would pay $. Part 2 If competing yields are expected to change to 8%, what is the current yield on this same bond assuming that you paid $4,000? The current yield is %.(Round your response to the nearest integer.) Part 3 If you sell this bond in exactly one year, having paid $4,000, and received exactly one coupon payment, what is your total return if competing yields are 8%? Your total return is %.A corporate bond maturing in 15 years with a coupon rate of 10.9 percent was purchased for $970 and it now selling for $1,000. 1. What will be its selling price in two years if comparable market interest rates drop 4.9 percentage points? (Hint: Use Appendix A-2 and Appendix A-4 or the Garman/Forgue companion website.) Round Present Value of a Single Amount and Present Value of Series of Equal Amounts in intermediate calculations to four decimal places. Round your answer to the nearest cent. $ 2. Calculate the bond's YTM using Equation 14.5 or the Garman/Forgue companion website. Round your answer to two decimal places. %
- What is the yield on a CD with an 5.5 percent rate, 180 days to maturity when initially issued, and 30 days remaining until its maturity, if it is selling at 1.25 percent above its face value?Consider the market for a bond which has a face value of $2,000, pays a coupon of $100, and matures in 2 years. Suppose the demand for such bonds is given by P=2,900-Q, and that the supply of such bonds is given by P=200+2Q. What is the yield to maturity of this bond, given the equilibrium price from the previous question? .1% .05% 10% 5%