It is indeed reasonable.We know this because interest rates rise when the economy is booming and fall when the economy goes into a
recession which is known as procyclic movement. What happens is that during recessions the government usually tries to keepcinterest rates low in order to stimulate investment. It is good because bond prices <span>and interest rates go in opposite directions so bond prices will rise when recession starts. </span>
Answer:
Paradigm
Explanation:
Definition: a typical example or pattern of something; a model.
Answer:
option 14.92%
Explanation:
Data provided in the question;
Expected annual dividend to be paid = $0.65
Expected growth rate = 9.50%
Walter’s stock currently trades = $12.00 per share
Now,
Expected rate of return = 
+ Growth rate
or
Expected rate of return = 
+ 9.50%
or
Expected rate of return = ( 0.054167 × 100% ) + 9.50%
or
Expected rate of return = 5.4167% + 9.50%
or
Expected rate of return = 14.9167 ≈ 14.92%
Hence, the correct answer is option 14.92%
Answer:
Net Exports Increase and net capital outflow increases.
Explanation:
When Microsoft sells copies of Windows in Japan and then uses the proceeds from the sale to buy bonds from the Japanese government. From the perspective of the United States there is an increase in the net exports from the US, because copies of Windows which are a product of the US economy is being sold in Japan.
There will also be a net outflow of capital as a result of purchase of Japanese government bonds. The capital gained from the sale of copies of Windows is not returned to the US economy, but is rather invested in the Japanese economy.
