What is meant by the statement the economy runs on credit? Most people use credit cards, loans, or other means of borrowed/advanced funds to make purchases within the economy. Because everything that people use to make these purchases is borrow, the economy as a whole runs on credit. The United States owes other countries money as well and uses credit to help finance things the country needs.
Answer:
Projects Y and Z
b. Projects W and Z
c. Projects W and Y
Explanation:
CAPM equation : Expected return = Risk free rate + Beta x (Expected market return - Risk free rate)
W = 4% + [0.85 x (11% - 4%)] = 9.95%
X = 4% + (0.92 x 7%) = 10.44%
Y = 4% + (1.09 x 7%) = 11.63%
Z = 4% + (1.35 x 7%) = 13.45%
Projects Y and Z have an expected return greater than 11%
b. Projects W and Z should be accepted because its expected return is higher than the IRR
c. Project W would be incorrectly rejected because the expected rate of return is less than the overall cost of capital (i.e. 9.95 is less than 11). But its expected rate of return is greater than the IRR
Y would be incorrectly accepted because its expected rate of return is greater than the overall cost of capital but its expected rate of return is less than the IRR
Answer: C: Price will increase and quantity will decrease.
(Question 40)
B: Subsidy
(Question 33)
D: A change in tastes and preferences
(Question 34)
C: Quantity demanded decreases
(Question 31)
C: The two goods are substitutes
(Question 32)
A: Making profits
(Question 29)
B: Demand goods and services in the product market
(Question 30)
Explanation:
Answer:
<h2>The answer would be option be option B. or An increase in hotel taxes at popular resorts.</h2>
Explanation:
- If everything else remains constant,a fall or decrease in oil prices will be a good news for most of the households and they will set out for vacation travel.
- Now,if suddenly the tax rates charged by popular hotels or resorts increase simultaneously or following the decrease in oil prices,it will increase the aggregate hotel or resort charges for the families and households or even for any individual traveler.
- Hence,an increase in hotel or resort taxes would discourage the individuals and households to undertake any current or future travel plans and therefore,offset the initial vacation plans that primarily resulted from cheaper gasoline or oil prices.
Health insurance and retirement savings