Answer: Shift to the right
Explanation:
Fertilizers are an important input in wheat production. When the price of fertilizers fall, it leads to a decrease in cost of producing wheat. Thus, producers will supply more wheat in the market. As a result the supply curve for wheat will shift to the right leading to a fall in the price of wheat and an increase in the quantity of wheat sold in the market.
Answer:
Explanation:
Yield on 1 year trasury bond: r1=4.25+3.5 = 7.75%
Now, yield is r3 = 7.75+1.5 = 8.25%
r3=r*+inf
8.25=3.5+inf
inf=4.75%
4.75 = (4.25+i+i)/3
14.25 = 4.25 +2i
2i = 10
i = 5%
Inflation expected after year 1 is 5%
Answer: " DECREASES" .___________________________________
Answer:
9.78%
Explanation:
The yield to maturity can be determined using the rate formula in excel as shown below:
=rate(nper,pmt,-pv,fv)
nper is number of times coupon interest would be paid,which is 12 years multiplied by 2(semi-annual interest payment) i.e 24
pmt is the semi-annual interest which is $1000*8%/2=$40
pv is the current price of the bond at $876.40
fv is the face value of the bond which is $1000
=rate(24,40,-876.40,1000)=4.89%
Semi-annual yield is 4.89%
Annual yield is 4.89%*2=9.78%
The yield to maturity on these bonds is approximately 9.78%
Answer:
d. government revenues equal government expenditures.
Explanation:
A balanced budget refers to a situation in which earnings are equal or greater than the expenses. Usually this term is used when talking about government budget and this is a budget that has no deficit and that it is possible than can have a surplus which helps to avoid leaving big debt for the future that can posses problems. According to this, a balanced budget is present when government revenues equal government expenditures.