The required rate of return on the stock of CD will be 10.86%.
<h3>What is rate of return?</h3>
The capital gains made from investment in such asset class(s) over a specific period is the rate of return of such investment. In the above case, the rate of return using the given values will be,
Hence, the required rate of return is calculated as 10.86%.
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Answer:
C.Occurrence of a trade war
Explanation:
Strategic Trade Policy depicts policy adopted by certain countries to effect strategic interactions between firms in an international oligopoly. These include policy instruments (export subsidy, import tariff) by trying to shift profits from international to domestic firms.It is likely to develop their firms status in international markets & raise level of domestic welfare.
Many economists are skeptical about government's analytical capacity to determine optimal amount of intervention, as per theory application. If non optimal (over protection intervention) is used, it might lead to risk retaliation by other international firms & action reaction leads to occurrence of trade (commercial) war.
Answer:
The correct answer is option e.
Explanation:
Suppose the US treasury is planning to issue $50 billion of new bonds. An increase in the supply of bonds will cause the supply curve to shift to the right. As a result, the price of bonds is likely to decline.
There is an inverse relationship between bond prices and interest rate. So this decline in the bond prices will cause the interest rate to increase.
Time is what changes every minute and space is outside of the human body