Answer:
the country's economy is in a liquidity trap.
Explanation:
A liquidity trap exists when interest rate are close to or equal to zero.
When there is a liquidity trap, expansionary monetary supply would not work because people would prefer to hold cash due to the believe that a negative economic event is about to occur e.g. deflation
When there is a liquidity trap, individuals prefer to save their monies rather than buy bonds
Liquidity trap was first discovered by John M. Keynes
Solutions to liquidity trap
1. Policies that would make savings less attractive
2, Increased government spending
Liquidity trap occurred in Japan in the 1990s and this led to a deflation
Answer: B. Discounters
Explanation:
A discounter is a shop or organization which specializes in selling things very cheaply. Discounters usually sell things in large quantities, or offer only a very limited range of goods. It is any business that provides a given service or product at a discounted price, especially one that threatens the market share of previous sector leaders.
Answer:
b. The after-tax equilibrium quantity is less than the socially optimal quantity
Explanation:
Negative externality is when the cost of either production or consumption activities to third parties exceeds its benefits.
An example of an activity that generates negative externality is pollution.
One way to reduce externality is through taxation.
The amount of negative externality generated is $6 but the amount of tax imposed is $8. The tax would reduce equilibrium quantity by $8 while the amount of negative externality produced is $6.
Answer:
The most suitable answer is b. developing the project charter
Explanation:
You might say that selection of a manager is true as well. In that case, yes it is. But it is not the MAIN OUTPUT, the main output us terms charter which states what to do and what we are expecting to do. Moreover, the charter points out in detail the plan, the funding, sponsors, responsibilities, etc.
Answer:
The required rate of return is 7.20%
Explanation:
The price of the preferred stock share is the dividend which is divided through the required rate of return. It is the same as the model of the constant growth, with the dividend growth rate of the 0%.
This is the special case of the model of the dividend growth where the growth rate is 0 and the level of perpetuity.
So, using the equation, compute the price per share of the preferred stock as:
Rate = Dividend (D) / Price (P0)
where
Dividend is $5.80
Price (P0) is $80.50 per share
So, putting the values above:
Rate = $5.80 / $80.50
Rate = 7.20%
