<u>Answer:</u> it can be concluded that fiscal policy from year 1 to year 2 became more expansionary.
<u>Explanation:</u>
When the fiscal policy becomes expansionary the government will decrease the taxes and increase its spending in order to reduce the recessionary situation in the country. In the above scenario budget deficit means the expenditure is more than the revenue.
A cyclical budget deficit means the deficit which occurs due to decrease in tax rates and increase in government spending. Increasing the taxes and government spending would both offset the balance in the economy.
Answer:
R = 7% x $1,000 = $70
Po= R/2(1-(1+Kd/m)-nm/Kd/m + FV/(1+Kd/m)nm
Po = 70/2(1-(1+0.0682/2)-13.5x2/0.0682/2 + 1,000/(1+0.0682/2)13.5x2
Po = 35(1-(1+0.0341)-27/0.0341 + 1000/(1+0.0341)27
Po = 35(17.4663) + 1,000/2.4728
Po = $611.3205 + $404.40
Po = $1,015.72
The correct answer is C
Explanation:
The current price of a bond is equal to present value of coupon plus the present value of face value of the bond. The bond pays semi-annual interest, thus, we will divide the coupon by 2 and then determine the present value. The bond yield will also be divided by 2.
Po = Current price of the bond, R = Coupon, Kd = Bond yield, FV = Face value, n = Bond maturity and m = No of times coupon is paid in a year
Answer:
The correct answer is Voice.
Explanation:
Taking into account the framework of exit, voice, loyalty and negligence, voice means directly raising comments on a particular situation that influences within the work team, so that superiors are aware of situations and can ask themselves solutions for the benefit of all.
Answer:
- Tax status = Ordinary Asset
- Gain = $60,000
Explanation:
As the company expensed the asset fully in the year of purchase instead of capitalizing it, the asset is an ordinary asset not a capital one which is capitalized. That is the tax status.
The gain on an ordinary asset is the amount that it was sold for which in this case is $60,000.
Tax status = Ordinary Asset
Gain = $60,000
Answer:
Decline & Downward
Explanation:
Taylor rule states that when the current inflation is higher than the target inflation the central bank should increase the interest rates. Therefore, central banks that does not follow Taylor rule, will not increase the interest rate in case of higher inflation expectation that eventually lead to:
- Decline in real interest rates (difference between interest rate & nominal inflation), as nominal inflation is increasing and interest rates are unchanged.
- Downward sloping curve as short term inflation expectations are higher
