Answer:
A. 7.95%.
Explanation:
Calculate the expected rate of return for the investment as follows:
Calculate the standard deviation of the investment as follows:
=
Answer:
increase , decrease
Explanation:
Import tariffs are amount levied on the imports of goods. tariffs makes imports more expensive and discourages import.
if an import tariff is in place for a particular good, the import of that good would reduce and this would increase domestic producers to produce more of the good to meet the demand of the good. so output of domestic producers would increase.
Because output is consumed domestically, exports would reduce.
Answer:
Longly will receive $1,817.43 from selling the bond.
Explanation:
As the coupon rate is 8%; we have annual coupon payment = 2,000 x 8% = $160.
The price of the bond Longly will receive is equal to the present value of 20 annual coupon payment plus the present value of $2,000 face value repayment in 20 years time; with the two streams of cash flow discounting at the market rate at the date of issuing 9%; which is calculated as:
[ ( 160/9%) x [ 1 - 1.09^(-20) ] ] + ( 2,000 / 1.09^20 ) = $1,817.43.
So, the answer is $1,817.43.
Answer:
it does not measure quality-of-life factors ; it does not account for distribution of wealth ; it fails to measure non monetary (home production) activities
Explanation:
Real GDP is the total value of goods & services produced in an economy, during a period of time. But it is not correct measure of welfare level.
- It does not measure non monetary production, like hobby production eg kitchen gardening, self made paintings, music. But, they increase welfare
- It does not take into consideration the qualitative factors affecting welfare like pollution, crime & literacy. Externalities cause extra benefit or harm to welfare level, but are excluded from GDP.
- Inequitable distribution of per capita (average) GDP increases rich poor standard of living divide. So, the distribution effect ignored make GDP an inapt measure of average welfare level.
Real GDP adjusts the value of goods & services for price change (Inflation), it is a correct measure of increase in real flow of goods & services. GDP & health positive correlation is a favouring point for GDP as a measure of welfare. So, these options are incorrect.
