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amm1812
3 years ago
11

If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then

economics would say that expectation formation is:________.A) irrational.B) rational.C) adaptive.D) reasonable.
Business
1 answer:
vaieri [72.5K]3 years ago
7 0

Option C

If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economics would say that expectation formation is:  adaptive.

<u>Explanation:</u>

Adaptive expectations hypothesis implies that investors will modify their expectations of future behavior based on current prior behavior. In finance, this impact can effect people to produce investment decisions based on the way of contemporary historical data, such as stock price activity or inflation rates, and modify the data to prophesy future exercise or rates.  

If the market has been trending downward, people will possible expect it to proceed to trend that way because that is what it has been acting in the recent past.

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On February 28, 1991, Master Inc. had total assets with a fair market value of $1,200,000 and total liabilities of $900,000. On
Katen [24]

Answer:

d. If Master is an insurance company

Explanation:

According to the given question, on January 15, 1991, Master made a monthly installment note payment to Acme Distributors, a creditor. Master Inc. had total assets with a fair market value of $1,200,000 and total liabilities of $900,000 on February 28, 1991. However, Master voluntarily filed a petition in bankruptcy on March 15, 1991. If the equipment was sold for less than the balance due on the note to Acme and a creditor challenged Master's right to file, the petition would be dismissed if Master is an insurance company.

Insurance is an entity that protects from financial loss. It is a form of risk management.

8 0
3 years ago
Annapolis Company purchased a $1,000, 6%, 5-year bond at 97 and held it to maturity. The straight line method of amortization is
Roman55 [17]

Answer: $330

Explanation:

The Net cash received is the Total Money received minus the Total money paid.

The total money paid is calculated as such,

= $1,000 x 97%( this a DISCOUNT bond meaning that it was sold for less than Par. This number signifies how much in percentage of Par it was purchased for)

= $970

$970 is the Total Amount paid.

The Total Amount Received would be,

= Principle on Maturity + Interest for 5 years

= 1,000 + 1,000(0.06) * 5 years

= $1,300

Net Cash Received is therefore,

= Total Amount Received - Total Amount Paid

= 1,300 - 970

= $330

$330 is the net cash received over the life of the bond investment.

5 0
3 years ago
(2) _____ is the federal branch responsible for creating guidelines and monitoring workplace safety.
olchik [2.2K]

Answer:

OSHA

OSHA is the branch responsible for monitoring workplace safety.

3 0
3 years ago
Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers' ___
Mandarinka [93]

Answer:

D) zone of tolerance.

Explanation:

Zone of tolerance: It defined as the service acceptance level of the customer beyond which the customer does not tolerate the service. it is an area between desired service and acceptable service, the acceptable service is the standard service in the market, which is made by advertisements and other communication sources.

In the given case, Nicole is able to deliver the acceptable service to the customer instead of being understaffed as she knows customer´s "zone of tolerance" before going elsewhere.

8 0
3 years ago
You own a bond with a par value of $1,000 and a coupon rate of 8.50% (semiannual coupon). You know it has a current yield of 7.0
Gre4nikov [31]

Answer:

Answer for the question:

You own a bond with a par value of $1,000 and a coupon rate of 8.50% (semiannual coupon). You know it has a current yield of 7.00%. What is its yield to maturity? The bond has 6 years to maturity. Current Yield = (annual payment / price). (hint: solve for price to answer the question). Group of answer choices

is given in the attachment.

Explanation:

5 0
3 years ago
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