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9 months ago

Why the economy sees business cycle fluctuations rather than slow, smooth growth is a central issue of ______.

1 answer:

6 0

The financial system sees commercial enterprise cycle fluctuations in preference to slow, easy boom is a crucial trouble of Economic shocks.

The required details for Economic shocks in given paragraph

An financial surprise refers to any extrude to fundamental macroeconomic variables or relationships that has a considerable impact on macroeconomic effects and measures of financial performance, which includes unemployment, consumption, and inflation. Shocks are regularly unpredictable and are generally the end result of occasions concept to be past the scope of regular financial transactions. Economic shocks have full-size and lasting outcomes at the financial system, and, in accordance to actual commercial enterprise cycle theory (RBC), are concept to be the foundation purpose of recessions and financial cycles. Economic shocks are random, unpredictable occasions which have a full-size effect at the financial system and are due to matters outdoor the scope of financial models.

Economic shocks may be labeled with the aid of using the financial area that they originate from or with the aid of using whether or not they mainly affect both deliver or demand. Because markets are connected, the outcomes of shocks can pass via the financial system to many markets and feature a main macroeconomic effect, for higher or worse.

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The Reading Co. has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3 percent annua

kicyunya [14]

Answer:

$1.07

Explanation:

In this question ,we use the formula which is shown below:

A = P × (1 + r ÷ 100)^n

where,

P = Present value $0.90

A = Future value

rate =3%

number of years = 6

Now put these values to the above formula

So, the value would be equal to

= $0.90 × (1 + 3%)^6

= $0.90 × 1.03^6

= $0.90 + 1.194052

= $1.07

We considered all the items so that the correct dividend can come

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2 years ago

An example of global dependency is when products are produced and used in the same country? True or false

alexandr402 [8]

Hello there,

An example of global dependency is when products are produced and used in the same country?

Answer: False

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2 years ago

How do stocks and bonds differ?

SIZIF [17.4K]

Answer:

The most suitable answer is Stocks may help you protect your money from inflation while bonds may be more susceptible to losing their value over time due to inflation.

Explanation:

Now remember, this is not "guaranteed" as stocks come with higher risks comparing to bonds, yet in US share market, stocks have performed well than the bonds overall. This is because stock prices fluctuate and if the company invested in is performing well, the share prices can sky rocket over a long period while in bonds you don't see this often as they are issued for a specific time and represents the debt capital.

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3 years ago

"High Risk Investment = High Return Investment", "Low Risk Investment = Low Return Investment"

Nikolay [14]

Answer:

Monte Carlo Simulation

Explanation:

Monte Carlo simulation refers to a methodology used in monetary, program management, expense, and other prediction frameworks to know the impact of financial risks. A Monte Carlo model allows one to see all or most of the possible results in order to get a better understanding of the probability of a judgment.

In other words, Monte Carlo approaches can also be used in theory to address any issue with a deterministic explanation. By using the law of large numbers, by getting the empirical average of individual variable tests, integrals represented by expected value of a certain independent variables can be estimated.

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3 years ago

You are a birder (birdwatcher) and your neighbor has put up several birdhouses in her yard and also planted trees and flowers th

REY [17]

Answer:

Positive externality

Explanation:

In economics, there are generally two different types of externality named as a positive and negative externality.

Positive externality: In economics, the term "positive externality" is described as a phenomenon that occurs when the production or consumption of a specific good leads to create a benefit to any third party.

Example: A particular beekeeper who tends to keep the bees as they produce honey.

In the question above, the given statement represents positive externality.

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2 years ago