Answer:
c. the well-being of sellers.
Explanation:
A surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.
Producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.
On the other hand, consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
Hence, an export subsidy will increase producer surplus.
In conclusion, producer surplus directly measures the well-being of sellers.
Through the expectations hypothesis and the liquidity preference theory of the term structure of interest rates, liquidity must be zero for the forward rate to be equal to the expectations of future short rates.
<h3 /><h3>What is expectation theory?</h3>
Corresponds to a forecast of short-term interest rates by analyzing them against current long-term interest rates.
Therefore, it is a theory used to assist in better understanding and forecasting short-term securities trading in the future.
Find out more about expectation theory here:
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Answer:
1.60 percent
Explanation:
exact real rate of return on this investment = interest rate - inflation rate
total revenue gotten by Christina = ( 500 × $ 64.25) + $ 738 = $ 32863
total money invested = 500 × $ 62.30 = $ 31150
her profit = $ 32863 - $ 31150 = $ 1713
interest = $ 1713 / $ 31150 = 0.054992 × 100 = 5.4992 %
exact interest rate = 5.4992 % - 3.9% = 1.5992 approx 1.60 percent
