Seeing a brand can cause consumers to automatically think of the attributes of the firm. True or False

A movement along the phillips curve shows that the unemployment rate and inflation rate are.

Gemiola [76]

Changing in response to the supply-side policy.

<h3>What causes a movement along the Phillips curve?</h3>

An increase in AD is a shift from point A to point B. Inflation rises, and the jobless rate falls when AD rises. A shift from point A to point C corresponds to a reduction in AD.
The Phillips curve is a diagram that illustrates the economic link between the rate of unemployment and the pace at which wages are changing in terms of money. It reflects the belief of economist A. William Phillips that wages tend to increase more quickly when unemployment is low.
According to the Phillips curve, unemployment and inflation are inversely related. Lower unemployment is correlated with higher inflation, and vice versa.

A movement along the phillips curve shows that the unemployment rate and inflation rate are.

Changing in response to the supply-side policy.

To learn more about the Phillips curve, refer to:

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3 0

1 year ago

Dixonville has had fundamentally the same demographics, economic system, and social structure for decades. In recent years

Mekhanik [1.2K]

Dixon ills has fundamentally historically and natural law

4 0

3 years ago

Expected cash dividends are $4.00, the dividend yield is 8%, flotation costs are 6% of price, and the growth rate is 5%. Compute

Brut [27]

Explanation:

$\text { Dividend, } \mathrm{D}= 4 \\\text { Dividend yield rate }=\mathrm{D} / \text { Current price }=8 % \\\text { Current price }, \mathrm{P} 0=\mathrm{D} / 8 \%=\$ 4 / 8 \%=$ 50$

$\text { Flotation cost, } \mathrm{F}=8 \% \text { of current price }=\$ 50 * 8 \%=\$ 4 \\
\text { Growth rate,g }=4 % \\
\text { Cost of new common stock, } \mathrm{Ke}=[\mathrm{D} 1 /(\mathrm{P} 0-\mathrm{F})]+\mathrm{g} \\ =[\$ 4 /(\$ 50-\$ 4)]+4 \% \\
=0.086956522+0.04 \\
=0.126956522=12.7 \% \text {(Rounded) }$

12.7%

6 0

3 years ago

A 30-year maturity bond making annual coupon payments with a coupon rate of 8.5% has duration of 12.88 years and convexity of 23

marin [14]

Answer:

a. Predicted Price = $1815.52

b. Predicted Price = $1,834.64

c. Predicted Price = $1425.4

Explanation:

The actual price of the bond as a function of yield to maturity is:

Yield to maturity --- Price

7% $1,620.45

8% $1,450.31

9% $1,308.21

a.

Using the Duration Rule, assuming yield to maturity falls to 6%:

Predicted price change = (-D/(1 + y)) * ∆y * Po

Where D = Duration = 12.88 years

y = YTM = 7%

∆y = 6% - 7% = -1%

Po = $1,620.45

So, Predicted Change = (-12.88/(1 + 0.07)) * -0.01 * 1,620.45

Predicted Change = 195.0597757009345

Predicted Change = $195.06 ----- Approximated

Therefore the new Predicted Price

= $1,620.46 + $195.06

= $1815.52

b.

Using Duration-with-Convexity Rule, assuming yield to maturity falls to 6%

Predicted price change

= [(-12.88/(1 + 0.07)) * (-0.01) + (½ * 235.95 * (-0.01²))] * 1,620.45

= 214.1770345759345

= $214.18 ------ Approximated

Therefore the new Predicted Price

= $1,620.46 + $214.18

= $1,834.64

c.

Using the Duration Rule, assuming yield to maturity rise to 8%:

Predicted price change = (-D/(1 + y)) * ∆y * Po

Where D = Duration = 12.88 years

y = YTM = 7%

∆y = 8% - 7% = 1%

Po = $1,620.45

So, Predicted Change = (-12.88/(1 + 0.07)) * 0.01 * 1,620.45

Predicted Change = -195.0597757009345

Predicted Change = -$195.06 ----- Approximated

Therefore the new Predicted Price

= $1,620.46 - $195.06

= $1425.4

4 0

3 years ago

5. ________ is a short-term security, or note, containing a borrower's promise to pay O A trade draft O Equity financing O Comme

erastovalidia [21]

Answer:

Commerical paper

Explanation:

Commerical paper is a short-term security, or note, containing a borrower's promise to pay.

There was a previous question like that, so i remember the answer.

~<u>rere</u>

5 0

2 years ago

Read 2 more answers