The correct answer is Driving without car insurance
That is irresponsible because it would take away a large chunk of your money should anything happen to your car.
When it comes to the second question, he should definitely find reliable and relevant information. Such information can be found in a bank and professionals working there can help him with his needs.
Answer:
Since the market value equals face value,coupon rate =yield is 75/1000=7.5%
That is 7.5% is before tax cost of floating the bonds
At tax rate of 30%,after tax cost of floating bond =7.5%*(1-30%)=5.25%
However,with a flotation cost of 2%,the before tax cost of flotation is calculated using below formula found in the explanation section.
((75+(1000-980)/25)/(980+1000)*2)=7.66%
Since tax rate remains 30%,the after tax cost of floating the bond with floating cost of 2% is: 7.66%*(1-30%)=5.36%
Explanation:
(Interest payment+((Par value-Net Proceds Value)/number of yr)/(Net Proceds+Par value)/2
Answer:
c. Increase by $0.1 trillion
Explanation:
Investment spending Multiplier is a concept in economics that measure how a given change in investment increases output. So if current output of $13.5 trillion must increase to $14 trillion, we employ the multiplier formula to derive what amount of investment spending is needed to get $o.5trillion increase in output.
(change in output)/ (change in investment) = 1/(1-mpc)
Note that mpc means marginal propensity to consume.
Let change in investment = X
change in output = 14 - 13.5 = $0.5trillion
mpc = 0.8
(0.5)/X = 1(1-0,8)
0.5/X = 1/0.2
cross multiply
X = 0.1
Thus the needed change in investment is an increase of $0.1 trillion. In other words, if investment increases by $0.1 trillion, current output will increase from $13.5 trillion to $14 trillion.
Answer:
A. Contradicted the Heckscher-Ohlin theory as the United States was relatively capital-abundant.
Explanation:
When Wassily Leontief tested the predictions of the Heckscher-Ohlin theory, he found that in 1947 the United States was exporting relatively labor-intensive goods and importing relatively capital-intensive goods. This finding: "Contradicted the Heckscher-Ohlin theory as the United States was relatively capital-abundant."
This is because Heckscher-Ohlin theory states that countries usually export commodities, and resources they have in excess, while in return, they import the commodities and resources they need.
However, given that the United States is a country that was relatively capital-abundant, Wassily Leontief's finding is considered to be a contradiction.
Answer: C, it's the market where foreign exchange rates are determined
Explanation: