Answer:
a. Is caused by changes in the business cycle.
Explanation:
Cyclical unemployment depends on the economic cycle that a country's economy is going through at a given time. In stages of recession or crisis, cyclical unemployment increases while in phases of expansion they decrease.
In economic terms, cyclical unemployment is said to be a fluctuation in the unemployment rate with respect to its natural rate, that is, the unemployment rate that cannot be reduced and is considered normal in an economy.
Cyclical unemployment increases when there is a fall in the economic activity of a country. In times when companies reduce their sales and investments, the demand for work is also reduced, so some people are laid off from their jobs while others cannot find a new job.
This type of unemployment is expected to reduce as economic activity begins to reactivate.
Answer:
Her net pay for the month is $6274.522
Explanation:
The computation of net pay is calculated by applying an equation which is shown below:
Net pay = Total pay - fica tax for social securtity - fica tax for medical care - federal income tax
where,
total pay is $8,738
fica tax for social security = total pay × fica tax rate for social security
= 8,738 × 6.2%
= $541.756
fica tax for medical care = total pay × fica tax rate for medical care
= 8,738 × 5.4%
= $471.852
And, federal income tax is $1449.87
So, the net pay is equals to
= $8,738 - $541.756 - $471.852 - $1449.87
= $6274.522
The suta tax rate would not be considered as full information is not given in the question. So, this part should be ignored.
Hence, her net pay for the month is $6274.522
Answer: Federal Fund Rate = 0.15%
Discount rate = 1.15%
Explanation:
The Federal Fund Rate is the rate at which banks can borrow money from other Banks and is listed as 0.15%. This rate is usually lower than the discount rate as is usually suggested by the Federal Open Market Committee.
The Discount rate is the rate at which Banks can borrow from the Fed which is stated to be 1.15%. This rate is set by the Fed and can be used to control interest rates by either reducing or increasing the cost of borrowing for Banks which banks then reciprocate.
Answer:
d. checking
Explanation:
A savings account is a type of bank account that pays interests and it allows you to deposit and withdraw your money when needed.
Money market refers to the market of financial institutions that want to lend or borrow money for a short period of time that doesn't exceed 12 months.
Corporate bond is debt issued by private companies to get funds.
A checking account is a bank account that allows you an easy access to the money you have and it is designed to used it for all your transactions like paying all the expenses.
Acccording to this, an account designed for payment of regular bills is the checking account.
Answer:
The borrower is best off in situation <u>"a"</u> and the lender is best off in situation ▼ "C" .
Explanation:
Considering all the situations given in the options, the <u>borrower</u> is best in situation <u>a</u> and <u>lender</u> is best off in situation in <u>c</u>.
<u>Part a </u>
Real Interest rate = Nominal Interest rate - Inflation rate = 14 - 17 = -3 per cent. Thus, the purchasing power of money has fallen and the person has to pay back money with little purchasing power as compared to the value of the purchasing power at the time he borrowed money. Thus, borrowers are best off.Thus, <u>borrower</u> is best off when the inflation rate is very high.
<u>Part c</u>
Inflation rate is negative, thus the purchasing power of money will increase and lenders will get back money with higher purchasing power as compared to the value of the purchasing power of money at the time he lend the money. Thus, <u>lender </u>is best off when inflation rate is lowest.