Answer:
a. You would expect the yields to rise due to increased default risk.
c. You would expect the yields to rise to compensate investors for the loss of the tax-exempt status.
Explanation:
The foreign government is threatened with bankruptcy which means that the government might be unable to pay their bond obligations. This means that the risk of default has now increased and so yields will rise as a result of this.
Tax exempt bonds like Municipal bonds generally have lower yields because of their tax savings. If the Government was to impose taxes on previously tax exempt bonds, people would be getting less and so would have to be compensated for this loss by increased yields.
Answer:
In the long run as aggregate demand increases and unemployment is reduced workers will demand higher wages the aggregate supply curve will shift left, and the economy will return to the natural rate of unemployment.
Explanation:
In the case when the government misjudge the natural unemployment rate and it is less than the actual one so in the long run, the aggregat demand rises also the unemployment decreased due to which the workers demand for higher wages is also decreased. This lead to the shifting of the aggregate supply to the left and the economy would return to the natural unemployment rate
Answer:
Decrease
No change
Explanation:
As we know that
Contribution margin ratio = [(Sales - Variable Costs) ÷ (Sales) ]
Now in the case when the selling price and the variable cost would decreased by 7% so the sales and variable cost would decreased by the similar amount so there is no change in the contribution margin ratio
Also
Contribution Margin per Unit = Sales revenue per Unit - Variable Expenses per unit
Now if the selling price and the variable cost would decreased by 7% so the contribution margin would also decrease
Answer: D. benefit or hurt another agent who is not part of the exchange relationship.
Explanation: Externality is a benefit or hurt to another agent who is not part of the exchange relationship. It can be positive or negative.
Majorly it affects the people around who has nothing to do with the effect itself.
Answer:
c $4,450 U
Explanation:
The computation of the Variable overhead spending variance is shown below:
= (Standard variable overhead Rate × Actual Hour) - (Actual Rate × Actual Hour)
= ($12 × 400 units × 5.6 hours) - ($31,330)
= $26,880 - $31,330
= $4,450 Unfavorable
The (Actual Rate × Actual Hour) is also called as Actual variable overhead.
All other information which is given is not relevant. Hence, ignored it
