Students who begin college not knowing what they want to study is a____

The Taylor rule specifies how policymakers should set the federal funds rate target. Suppose that U.S. real GDP rises 1% above p

VladimirAG [237]

Answer:

FED raise the federal funds rate target by 0.5%

FED raise the federal fund rate target by 2%

Explanation:

Taylor Rule states that Federal Funds should raise rates when inflation rises. When Gross domestic products growth of a country is high and above potential level then FED should raise rates. When inflation rises by 1% above target level then federal funds should raise FED by 2%.

6 0

3 years ago

As the price level rises, the purchasing power of households' real wealth will , causing the quantity of output demanded to . Th

andreyandreev [35.5K]

Answer:

As the price level rises, the purchasing power of households' real wealth will fall, causing the quantity of output demand to fall. This phenomenon is known as the wealth effect.

Additionally, as the price level rises, the impact on the domestic interest rate will cause the real value of the dollar to rise in foreign exchange markets. The number of domestic products purchased by foreign (exports) will therefore fall, and the number of foreign products purchases by domestic consumers and firms(imports) will rise.

Net exports will therefore fall, causing the quantity of domestic output demanded to fall. This phenomenon is known as the exchange rate effect.

6 0

3 years ago

Specter Consulting purchased $8,900 of supplies and paid cash immediately. What general journal entries will Specter Consulting

sergiy2304 [10]

Answer:

Debit Supplies $8,900; Credit Cash $8,900

Explanation:

Based on the information given the general journal entries that Specter Consulting will make to record this transaction assuming the companyâs policy is to initially record prepaid and unearned items in balance sheet accounts will be :

Debit Supplies $8,900

Credit Cash $8,900

7 0

3 years ago

To protect consumers, the SEC requires brokers and dealers to information about securities. True or False

Mashutka [201]

Answer;
The above statement is true;

To protect consumers, the SEC requires brokers and dealers to reveal information about securities.

Explanation;
The objective of the SEC (securities and Exchange Commission) is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. they also protect consumers by requiring brokers and dealers to reveal information about securities.

4 0

3 years ago

Read 2 more answers

Sunland, Inc., has issued a three-year bond that pays a coupon rate of 7.5 percent. Coupon payments are made semiannually. Given

diamong [38]

Answer:

$1086 approx.

Explanation:

Given: Coupon rate 7.5 % per annum i.e 3.75% semi annually

YTM = 4.4% per annum i.e 2.2% semi annually

Face value: $1000 (assumed)

No of periods to maturity = 3 years × 2 half years = 6 periods

Value of a bond is given by the following equation

$B_{0} = \frac{C}{(1\ +\ YTM)^{1} } \ +\ \frac{C}{(1\ +\ YTM)^{2} } \ +.....+ \frac{C}{(1\ +\ YTM)^{n} } \ +\ \frac{RV}{(1\ +\ YTM)^{n} }$

where $B_{0}$ = Market value of bond

C= Coupon payment each period

YTM = Yield to maturity rate

n= no of periods

Hence, $B_{0} = \frac{37.5}{(1\ +\ .022)^{1} } \ +\ \frac{37.5}{(1\ +\ .022)^{2} } \ +.....+ \frac{37.5}{(1\ +\ .022)^{6} } \ +\ \frac{1000}{(1\ +\ .022)^{6} }$

= 5.5638 × 37.5 + 1000 × .8776

= 208.64 + 877.60

= 1086.24

Market value of the bond is $1086 approx

This means, the bond is valued above par or priced at a premium. The reason being, it's rate of coupon payments being higher than it's yield to maturity rate.

8 0

3 years ago

Students who begin college not knowing what they want to study is a_____.