Answer:
b. increases the interest rate and so investment spending increases.
Explanation:
According to the IS-LM framework,
An increase in government spending shifts IS upward resulting in higher interest rate as well as GDP. The higher interest rate will hamper investment spending.
The answer is settling on morally revise business choices.
Answer:
The price of the bond is closest $101.36
Explanation:
It is noteworthy that a rational investor pays for a bond today the cash flows derivable from the bonds in future discounted to today's terms.
The future cash flows comprise of the yearly coupon interest of $5.5(5.5% *$100) for 3 years as well as the repayment of the principal $100 at the end of year 3.
To bring the cash inflows today's term, we multiply them them by the discounting factor 1/(1+r)^N , where is the yield to maturity of 5% and N is the relevant the cash flow is received.
The discounting is done in attached spreadsheet leading $ 101.36 present value today.
Answer:
I think Sears need to stop diversifying its product too much and focus on improving internal human resources.
Explanation:
The largest expense that Sears made occurred during their effort to add more female customers to shop at their place.
Sears was known for its DieHard, Craftsman and Kenmore brands that attract mostly male customers to their stores. They started “The Softer Side of Sears” which focused on adding more products for female customers.
But, in the process of doing so, Sears neglected their already successful male products department with a lot of employees who sacrifice a lot of their time and effort into making Sears as big as it is.
In order to restore to its former glory, Sears need to stop focusing on new market with a lot of strong competitors and focused on improving skill set of employees in their successful department. They can do this by investing in their education, increasing the budget for their research and development, etc.
