1) Mixed economies are a mix of Command (regulated by the government) and free (Market) economy - the answer is b)
2)Today most countries have a mixed economy, there are few (such as North Korea) which have a command economy, but none have a true free market (for example drugs are regulated)
3)Inflation means that one needs more money to buy the same goods - this is measured by a rising Consumer Prize index (answer d)
4) this indicator would be a steady, but low inflation - but inflation is bad for the economy but lack of inflation is not really stable
Answer:
Interest rate = 4%
Explanation:
Given:
Face value of bond = $5,000
Annual coupon payment = $200
Interest rate = ?
Computation of interest rate on bond:
Interest rate = (Annual coupon payment / Face value of bond ) × 100
Interest rate = ($200 / $5,000) × 100
Interest rate = (0.04) × 100
Interest rate = 4%
Therefore, annual interest rate on bond is 4%
Answer: Argentinean central bankers effectively gave control of their domestic interest rate to the FOMC.
Explanation:
The Federal Open Market Committee(FOMC) is a committee of the Federal Reserve which influences the interest rate in the country by engaging in Open Market Operations (OMO). In doing so, they also influence the value of the dollar which is the currency of the U.S.
By pegging the Argentine Peso to the U.S. dollar, the Argentines effectively gave control of their domestic interest rate to the FOMC because the FOMC in deciding the interest rate for the U.S. and therefore the dollar, will be deciding for any other currency that moves exactly as the dollar does which is what the Peso is now going to do.
Answer:
5.95%.
Explanation:
Expected dividend (D1) $1.25
Stock price $27.50
Required return 10.5%
Dividend yield 4.55%
Growth rate = rS - D1/P0 = 5.95%.
