Your paycheck for the year is higher this year than last year. Does that mean that your real income has increased.

Q: Interest rates increase.

A: The market in which the aggregate demand curve and aggregate supply curve interact to determine the…

Q: Write the net present or future worth expression?

A: The Net present value is the present value of a future sum of the money in the economy. The net…

Q: Is it possible for a one-year coupon bond to have a negative nominal interest rate? Explain, how?

A: Yes, it is possible for a one-year coupon bond to have a negative nominal interest rate as long as…

Q: Butter is a final good True/False

A: Final goods are end products which are used by the consumer and intermediate goods are the goods…

Q: GST was first introduced in which country ?

A: GST was introduced in many countries to reduce the tax evasion.

Q: Investors become optimistic with respect to the economic situation. Analyze its effect on interest…

A: The scinario given in the question can be understood with the help of loanable funds market.

Q: How would you construct a one-year budget plan for a specific job, and how would you construct a…

A: In the mention question budget strategy is being asked. Budget mainly said to the financial…

Q: Differentiate the following investments by determining its advantage or disadvantage Money market…

A: Money market: The money market can be defined as a market that is being used for trading short-term…

Q: Would a dollar tomorrow be worth more to you today when the interest rate is 20% or 10%?

A: Given the interest rates are 20% and 10%.

Q: Short term savings and loans are part of what

A: Financial Market generally in an economy is characterized as – Money Market and Capital Market…

Q: Why are families so important to the American economy?

A: Rising monetary disparity in the United States and all over the planet is broadly considered a…

Q: (2) Your paycheque for the year is higher this year than last year. Does that mean that your real…

A: 2) Increasing income does not always imply that real income has increased. If the paycheck has…

Q: How do people typically respond to higher real interest rates? by saving less by paying more taxes…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Answer the question no (c) = Future Value (F)= ? Answer the question no (D)= Present value (G) = ?

A: Future value using present value can be calculated as:F=G(1+r)^n Where F is future value, G is…

Q: What might cause interest rates to be low one year and high the next?

A: Interest rates are best thought of as the "cost of money." If a borrower wishes to spend more money…

Q: if you were living in a country where there was no financial system, discuss the options you would…

A: Retirement: When an individual reaches an age limit where he either willingly choose to end his…

Q: What are you planning for when you plan for retirement? how to pay for your next vacation how to pay…

A: Before retirement, I get steady monthly income to maintain my lifestyle. But after retirement, I…

Q: Why is investment is a better option other than savings?

A: The income remaining from the consumption expenditure is termed as the saving of the people. It can…

Q: What would be the value of APS if savings is half that of income.

A: The data presented is that the savings of the household is half that of income.  So if income is Y…

Q: The rate of interest written on a contract between a borrower and a lender is the

A: Interest rate is the cost of borrowing money or fund from the market. The rise in the interest rate…

Q: You are choosing between buying a home or continuing to rent. You value the home at $1,000,000 (one…

A: Answer: The buyer values the house at $1,000,0000. So, Willingness to pay = $1,000,000 Cost of house…

Q: What value of P would make you indifferent to your choice between P dollars today and the promise of…

A: The value P is present worth of money or we can say value of money now, and the $3000 at the end of…

Q: Differentiate between Pure and Mixed Investments?

A: There are two types of cash flows: simple and non-simple. The non-simple cash flows are when the net…

Q: What causes the yield on a discount bond to exceed the coupon rate on a bond?

A: The markets are the place where the buyers of the goods, services, and products tend to meet and…

Q: Why do we use the present value of an asset or investment as basis for its value?

A: Present Value:- Amounts of money presently are valued higher than the same quantity in the future,…

Q: Would you take stock options in lieu of a higher salary?Why or why not?

A: Stock options granted by the employer to the employee enable them the right to purchase a certain…

Q: A Government issues a bond that pays 1000$ in 1 year. If the price of the bond is 920$, what is the…

A: Here, it is given that the government is paying an amount of $1000 for a bond, whose price is $920.

Q: - Interest is paid because

A: To find : Why is interest paid.

Q: What is the meaning of Net Present Worth?

A: The net present worth also known as the net present value calculated the difference between the…

Q: Many countries have policies that limit how much interest a moneylender can charge on a loan. Do…

A: Money lenders are people who lends its money in which it earns interest rate basically money lenders…

Q: Does the Broader Diversification reduce the rate?

A: Yield: The term yield refers to the revenue or profit that is generated. For instance, the initial…

Q: What is the relationship between interest rates and business investment?

A: To determine the relationship between interest rates and investments.

Q: The interest rate is 7 percent. Use the concept of present value to compare $200 to be received in…

A: If r is the interest rate, then amount X to be received in n years will have a present vale of :…

Q: You hold a two-period bond that pays a coupon  at the end of each period. The interest rate is…

A: Holding a two-period bond, that pays a coupon at the end of each period with an interest rate of…

Q: It is the number of individual buy orders and the total number of shares that wish to buy.

A: It denotes the number of shares of a security that investors are prepared to buy at a certain offer…

Q: Net interest is the interest paid out by US households and the government minus the interest income…

A: Net interest is the difference between the interest paid out by households and the government minus…

Q: Discuss how the present value of a future income payment is calculated.

A: The present value measures the current value of a future sum of money, given a specified interest…

Q: Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need…

A: Formula - A=P(1+r/n)nt A is the value at retirement P is the principal, which is the $4,000…

Q: _______ A study of how wealth is created and distributed.

A: Economics is a social science which studies the functioning of an economy. It can be divided into…

Q: The price of a bond is.

A: Bond price is the present discounted value of future cash stream generated by a bond.

Q: When the interest rate rises, bond values

A: GIVEN   the interest rate raise,bond values is

Q: Does Income reflect Wealth? In what ways?

A: In economics, income and wealth are considered as two different concepts as they include some…