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2 years ago

Please list and explain the three principles that describe how the economy as a whole works.

Business

1 answer:

STatiana [176]2 years ago

6 0

Answer:

The standard of living from country to country is affected by their level of productivity. The more productive a Country is, the more goods and ser- vices they have available, etc.lnflation occurs when the government prints a surplus of money.There is a trade-off between inflation and unemployment. Increase in price can happen from higher demand, which in turn causes firms to higher more workers to produce more goods/services.

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When the required return is equal to the coupon rate, the bond value is▼equal togreater thanless thanthe par value. In contrast

-BARSIC- [3]

1) Answer: When the required return is equal to the coupon rate, the bond value is equal to the par value,

2) if the required return is less than the coupon rate the bond will sell at a premium.

Explanation:

1) The reason for this that the required return is the market or investors required rate of return for a particular bond, when the required rate and coupon rate are equal it means that the investor is getting the return he wants in coupon payments, therefore the investor will be willing to buy the bond on par value, as he is getting his required return in the form of coupon payments.

2) When the required return is less than the coupon rate the investor is getting more in coupons than he required from the bond so the bonds price will be higher than par so that the return from the coupons become equal to the required rate of return. Thats why when a bonds required return is less than the coupon it sells on a premium.

3 0

2 years ago

In a given year, Jennifer earns $50,000 and spends $40,000. During the same period, Stcve earns $30,000 and spends $27,000. If J

elena55 [62]

Answer:

The sales tax is regressive with respect to income

Explanation:

sales tax by Jennifer = 0.1*30000

= 3000

tax/income = 3000/50000

= 6%

sales tax by steve = 0.1*27000

= 2700

tax/income = 2700/30000

= 9%

The tax increases with decrease in income, it indeed is regressive on the whole.

Therefore, The sales tax is regressive with respect to income

6 0

2 years ago

When must you inspect your tools and extension cords?

Iteru [2.4K]

Answer:

Testing should be conducted on each piece of equipment every three months, as well as before first use or return to service after repair. In order to ensure a grounding wire is electrically continuous throughout the extension cord or power tool, a continuity test must be conducted.

Explanation:

3 0

3 years ago

When a nation's currency suddenly loses value, the ________ may step in to buy the afflicted currency?

cricket20 [7]

If a nation's currency drops in value significantly, the International Monetary Fund could step in and buy the currency so that some stability could occur economically

3 0

2 years ago

You borrow $12,600 to buy a car. The terms of the loan call for monthly payments for five years at an interest rate of 4.65 perc

UkoKoshka [18]

Answer:

$627

Explanation:

To find the answer, we use the present value of an annuity formula:

$P = A[1-(1+i)^{-n} /i]$

Where:

P = Present value of the investment
A = Value of the annuiry
i = interest rate
n = number of compounding periods

Now, we plug the amounts into the formula:

$12,600 = A[1-(1+0.0465)^{-60} /0.0465\\]$

12,600 = A (20.09870355)

A = 12,600/20.09870355

A = 627

Thus, the value of the monthly payments is $627

4 0

2 years ago