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3 years ago

Which of the following is an example of a relationship with a negative slope?

Business

1 answer:

iren [92.7K]3 years ago

5 0

Answer:

c. More items purchased when prices drop

Explanation:

Lets determine the two variables and their relation in each of the cases.

Quality decreases. Quantity purchased decreases. Both item decreasing is a positive relation and thus would not yield a negative slope.

Spending rises. Income rises. Both items increasing is a positive relation and thus would not yield a negative slope.

Purchases increase. Price decrease. One item increases while the other decreases and thus is a negative relationship with a negative slope.

Qty sold increases. Quality increases. Both items increasing is a positive relation and thus would not yield a negative slope.

Hope that helps.

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Consider an economy described by the following equations:

Ede4ka [16]

Answer:

a. exchange rate = 1

b. exchange rate = 1.5

Explanation:

(a) National Saving = Private saving + public saving

Private saving = Y - C - T

=> Private saving = 5000 - (250 + 0.75(Y – T)) - 1000

=> Private saving = 5000 - (250 + 0.75(5000 – 1000)) - 1000 = 750

Public saving = T - G = 1000 - 1000 = 0

National saving = 750 + 0

= 750

Investment = 1000 - 50r = 1000 - 50*5

= 750

Y = C + I + G + NX

Trade Balance = Y - C - G - I = 5000 - (250 + 0.75(5000 – 1000)) - 1000 - 750 = 0

Thus Trade Balance = 0

NX = 0 => NX = 500 – 500e = 0

=> e = 1

Thus exchange rate = 1

(b)

National Saving = Private saving + public saving

Private saving = Y - C - T

=> Private saving = 5000 - (250 + 0.75(Y – T)) - 1000

=> Private saving = 5000 - (250 + 0.75(5000 – 1000)) - 1000 = 750

Public saving = T - G = 1000 - 1250 = -250

National saving = 750 - 250

= 500

Investment = 1000 - 50r = 1000 - 50*5

= 750

Y = C + I + G + NX

Trade Balance = Y - C - G - I = 5000 - (250 + 0.75(5000 – 1000)) - 1250 - 750 = -250

Thus Trade Balance = -250

NX = -250 => NX = 500 – 500e = -250

=> e = 750/500 = 1.5

Thus exchange rate = 1.5

8 0

3 years ago

Consider these long-term investment data: • The price of a 10-year $100 par zero-coupon inflation-indexed bond is $84.49. • A re

AleksAgata [21]

Answer:

Annual rate 0.017

Explanation:

Computation of the annual rate on the real bond.

Using this formula

Annual rate = Par Zero coupon inflation index/(1+r) ^Numbers of years =Inflation-indexed bond

Let plug in the formula

Annual rate=100 / (1 + r) ^10 = 84.49

Annual rate= (100 / 84.49)^1 /10 − 1

Annual rate=(1.18357)^0.1-1

Annual rate=1.016-1

Annual rate=0.017

Therefore the annual rate of return will be 0.017

3 0

3 years ago

Read 2 more answers

Oscar's Flower Shop maximizes profits by hiring four workers in a perfectly competitive labor market. The workers and their valu

MissTica

Answer: A. In equilibrium, each worker is paid is or her value of marginal product of labour.

Explanation:

Marginal productivity of income distribution refers to the additional revenue derived from the marginal unit of product produced and that wages should be equal to the marginal revenue derived from the production of additional or marginal product and this is achieved at equilibrium.

The theory also implies that workers should not be paid below or above the marginal revenue derivable from marginal product which implies they cannot be paid $15 or $40, moreover the product price is not a determinant of wages rate.

7 0

3 years ago

The bond has a coupon rate of 6.83 percent, it makes semiannual payments, and there are 4 months to the next coupon payment. A c

Kipish [7]

Answer:

The invoice price for the bond is $1,060.38

Explanation:

Given the following:

PV= Par value = $1,000 ,

CV= Clean Price = $1,049

Coupon Rate per annum = 6.83%

To calculate the Semiannual Coupon Rate= Coupon Rate per annum/2= 3.415%

To calculate Semiannual Coupon= Semiannual Coupon Rate*PV

= 3.415% * $1,000 = $34.15

With an interest accured over 2 months, we calculate it thus:

Accrued Interest = $34.15 * 2/6 = $11.38

To calculate Invoice price:

Invoice Price = CP + Accrued Interest

Invoice Price = $1,049.00 + $11.38

Invoice Price = $1,060.38

3 0

3 years ago

A company's external value delivery network consists of __________.

Phoenix [80]

The answer is D. A company’s external value delivery network consists of suppliers, distributors, and customers. Note that this list does not involve the internal divisions of the company nor its competitor, but only those that it corresponds with to be able to deliver their product or service.

6 0

3 years ago