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3 years ago

One reason that consumers and businesses might not act rationally is

1 answer:

4 0

Answer: One reason that consumers and businesses might not act rationally is they may not realize their actions are inconsistent with their goals.

Rationality stand for choice or state where an individual is rational, i.e. being supported on or accordant to rational motive. It connote the conformance of an individual beliefs with his reasons to do so.

Therefore the correct option in this case is (b)

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A worker gets a raise of $120 per month and quickly decides to spend $90 of the money on necessities and the occasional luxury,

musickatia [10]

Answer:

MPC = 0.75

Explanation:

Marginal Propensity to Consume (MPC) is a part of Keynesian macroeconomic theory and is calculated by the change in consumption divided by the change in income. It quantifies the increased consumption which occurs with an increase in disposable income

$MPC = \frac{/Δconsumption}{/Δincome}$

$MPC = \frac{90}{120}$

$MPC = 0.75$

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3 years ago

The downside of increased reliance on technology in the workplace includes ____.

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3 years ago

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Which herbs are useful from cosmetic point of view ? also name the products made from them

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Aloe Vera is a very common item found in cosmetics. Such items as body lotions, creams, sunscreen, serums, and moisturizers all use aloe vera!

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2 years ago

In the business world, you need this trait so you can stay ahead of the competition. independence risk-taking self-assurance con

lesya692 [45]

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Explanation:

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3 years ago

Assume that the six-month Treasury spot rate is 1.6% APR, and the one-year rate is 2% APR, both compounded semiannually. What is

damaskus [11]

Answer:

Explanation:

Coupon rate = 2%, Par value = $1000

Treasury bond pays coupon semi annually

Coupon payment = (Coupon rate * par value) / 2 = (2% x 1000) / 2 = 20 / 2 = $10

Cash flow in six months = Coupon payment = $10

Cash flow in 1 year = Coupon + par value = 10 + 1000 = 1010

Discount rate for cash flow in 6 months = six-month Treasury spot rate i= 1.6% APR

Semi annual discount rate for cash flow in 6 months = 1.6% / 2 = 0.8%

Discount rate for cash flow in 1 year = 1 year Treasury spot rate i= 2% APR

Semi annual discount rate for cash flow in 1 year = 2% / 2 = 1%

Price of Treasury bond = present value of cash flow in six months discounted at semi annual discount rate + Present value of cash flow in 1 year discounted at semi annual discount rate

Price of Treasury bond = 10 / (1+0.80%) + 1010 / (1+1%)^2 = 10/1.0080 + 1010 / (1.01)^2 = 9.9206 + 990.0990 = 1000.02

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3 years ago