Answer:
The statement is true.
Explanation:
The investor aversion to risk must be compensated with an increased return to make it more feasible.
If all bonds' return were the same then, investor will not invest on high risk bonds.
Company's will not issue the bond to yield higher than they can pay nor higher if they can do it the same as AAA. They do it as the only way to attract investment to his business.
Answer:
a) The marginal benefit is greater than the marginal cost of additional units.
Explanation:
Cost-benefit analysis is the systematic process of wieghing various transactions based on comparism between their benefit and cost.
The rational storage business owner should compare the cost of building another section of storage units to the benefit from 100 renters.
If the additional cost is justified by the benefit then he can go ahead with the construction.
Answer: B. provides more social benefits than it derives in private benefits.
Explanation:
Raven farms in this instance is deriving less private benefits than it gives social benefits.
Private benefits are those benefits that the producer gains as a result of their actions.
Social benefits on the other hand are the benefits gained by the producer as well as the benefits to society as well.
Raven's private benefits are the revenue it accrues from it's skin healing cream and yet those same bees still providing a societal service of pollinating Oakcreek Apple Orchard Apple. That shows that they are giving more social benefits than they are receiving.
Answer:
Federal Funds Rate:
d. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves.
Explanation:
Federal funds rate is the target interest rate set by the FOMC (Federal Open Market Committee) at which commercial banks with deficit reserves borrow and banks with surplus reserves lend their excess reserves to each other overnight without collateral. The rates are set eight times a year in line with prevailing economic situations. The rates are lowered to boost economic growth and reduce unemployment by increasing money supply. They are increased to check inflation.
Answer:
(d) Identifying distractions.
Explanation:
Distraction is the process of diverting the attention of an individual or group from a desired area of focus and thereby blocking or diminishing the reception of desired information. Also distractions can come form both external sources and internal sources. Dante's is external and he was able do identify it and got a solution.
