Answer: c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.
Explanation:
Interest rate changes have a greater impact on distant cashflows because those cashflows will be exposed to the interest rates for longer. This means that they will be subjected to more discounting than a cashflow that is due in one year which would be subject to only a single year of discounting.
For instance, assume the required rate of return for two investments is 10%. One investment yields $10,000 in 20 years and another yields $10,000 in 2 years .
The present value of both are:
= 10,000 / (1 + 10%)²⁰ = 10,000 / ( 1 + 10%)²
= $1,486.43 = $8,264.46
<em>Notice the difference. The longer term investment was more exposed to interest rate effects. </em>
The answer is C and cannot be no other one because you bought it less that what you sold it for
Answer:
D) the AD curve will shift out, causing an increase in the Japanese price level, but not change in output.
Explanation:
If the government starts to increase spending, the total income will increase, shifting the AD curve outwards. Generally this situation would increase both the general price level (inflation) and total output (AS curve). But since the economy is already at full employment, real output will increase minimally (if any increase at all). The largest effect will be felt in the rise of inflation.
Soft Money.
What is Soft Money
Contributions made outside the parameters and restrictions of federal law are referred to as soft money (also known as non-federal money). This indicates that it consists of substantial individual and PAC contributions as well as direct corporate and union contributions. Hard cash, on the other hand, refers to contributions that must comply with the FECA, i.e., limited individual and PAC contributions.
To learn more about Soft Money
brainly.com/question/12660638
#SPJ4
It should be noted that Extension of goal-seeking analysis, finds the optimum value for a target variable .
<h3>What is Goal seeking?</h3>
Goal seeking serves as one of the tools used in "what-if analysis" on computer software programs.
This analysis is performed by repeatedly changing other variables, subject to specified constraints.
Learn more about Goal seeking analysis at,;
brainly.com/question/9087023
