1) Always maintain a book for accounts or maintain an app regarding to track your expenses
2) keep an accountant to track his expenses
Answer: The value of the bond will decrease
Explanation:
The Interest rate has a negative inverse relationship with the value of a bond
. When the interest rate increases the value of a bond decreases and when interest rate decreases the bond value increases. Bonds with low coupon rates tend to be more sensitive to interest rate changes this is known has coupon effect.
Bonds with long time frame (long term bonds), they also tend to be are more sensitive to changes in the interest rate this is known has the maturity effect. Therefore a change in the interest rate will cause a huge change in the value of a Bond with low coupon rate and long time period.
The Bond is a 20 year Bonds which qualifies it to be a long term bond and the coupon Rate is 7%, with these facts and knowing that long term bonds are more sensitive to interest rate changes we can conclude that the sudden increase of the interest rate to 15% will cause a huge decrease in the value of the bond
Answer:
The correct answer is (B) False.
Explanation:
Variable costs, as the name implies, differ with the level of production and are associated with the use of variable factors, such as labor and raw materials. Since the amounts of factors increase as production increases, variable costs increase when it does.
Answer:
The level of saving = $450 billion - $400 billion= $50 billion
Marginal propensity to save = 1- marginal propensity to consume (MPC)=0.5
Expected consumption
MPC= change in Consumption/ change in income 200 billion * 0.5 = $100billion
Therefore consumption = 100 billion + 400 billion = $500 billion
Saving = $650 billion - $500 billion= $ 150 billion
Explanation:
