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Svetradugi [14.3K]
2 years ago
11

If interest rates fall and the yield to maturity decreases by? 0.8%, what will happen to the price of the? bond

Business
1 answer:
Goryan [66]2 years ago
3 0
The price of it will fall
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An economy is operating with output $300 billion below its natural rate, and fiscal policymakers want to close this recessionary
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Answer and Explanation:

a. The computation is shown below;

As we know that

Y/G = 1 ÷ (1-MPC)

Here

Y = $300 billion,

MPC = 0.75

So,  

300 ÷ G = 1 ÷ 0.25

G = $75

So the government should rise the spending by $75 in order to close out the recessionary gap

So, the government should increase the spending by $30 to close the recessionary gap.

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2 years ago
Which group works to help members establish internal political stability?
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The answer for this question is C
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3 years ago
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Multiple Select Question Select all that apply Bad Debt Expense ______. (Check all that apply.) Multiple select question. should
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Bad Debt Expense is a cost of extending credit to customers is based on actual events and does not require estimation is an estimate.

  • When a receivable is no longer recoverable as a result of a customer's inability to pay an outstanding debt owing to bankruptcy or other financial issues, a bad debt expense is recorded.
  • Big Store stops paying its debts and fails to reimburse Company XYZ for goods valued at $100,000. Company labels the $100,000 as a bad debt because it has little faith that Big Store will ever make good on its obligations.
  • When a customer's repayment of previously granted credit is thought to be uncollectible and is therefore recorded as a charge off, a business incurs a bad debt expense.
  • Bad debt charges are categorized as operating costs and are typically listed under selling, general, and administrative costs on your company's income statement.

Thus this is the answer.

To learn more about Bad debt expense, refer:brainly.com/question/24871617

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4 0
2 years ago
If washburn guitars were to lower the price of the maya pro dd75 to $2,499 from $2,699, sales of the guitar would increase 30 pe
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The Washburn guitars reduces their price from  $2,499 to $2,699 as a result of the sales of the product drastically increased by 30%, So this represents that the <u>product has an elastic demand.</u>

<h3>What do you mean by elastic demand?</h3>

When the price of a product has a massive effect on the quantity purchased is called Elastic demand. A product is stated to have an elastic demand if sales drop sharply in reaction to a growth in price, or sales spike whilst prices are decreased.

Thus, The Washburn guitars reduces their price from  $2,499 to $2,699 as a result of the sales of the product drastically increased by 30%, So this represents that the <u>product has an elastic demand.</u>

Learn more about elastic demand:

brainly.com/question/5078326

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3 0
2 years ago
Table 1 contains information about a small business for one month. The business
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Answer:

workings. Number of units sold: 240. Fixed costs: £1 100. Variable costs per unit: 45 pence. (2) ... You are advised to show your workings. (2). (Total for question = 2 marks). Q6 ... Table 1 contains information about a small business for one month. ... Using the information in Table 1, calculate the profit for this business. You ...

Explanation:

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3 years ago
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