Answer: Interest rate rises
Explanation:
When interest rates rises, or move up cost of borrowing becomes higher and expensive. This results in the demand for lower-yield bonds dropping, which causes their prices to drop.
A decrease in interest rates will always lead to investors moving money from the bond market to the equity market, which results in the rise or influx of new capital. This puts the banks market value of equity at a disadvantage.
Answer:
In a macroeconomic perspective, the balance of trade (BOT) simply refers to the difference between the value of the imports and exports of a country. In measuring the relative strength of a country's economy, economists make use of the balance of trade. Also, in considering the balance of payments, the balance of trade is the largest component considered.
In balance of trade, TRADE DEFICIT and TRADE SURPLUS are usually considered in relation to their import and export activities
The Trade Deficit results when a country imports more good and services than it exports. While the Trade Surplus results when a country exports more goods and services than it imports.
Since 1976, the United States had a trade deficit. This was as a result of their dependency on oil imports and consumer products. While since 1995, China which produces and exports many of the world's consumable goods has recorded a trade surplus.
When trade deficit occurs, countries affected borrow money to pay for their goods and services but when trade surplus occurs in a country, such country lends money to deficit countries.
Formula for BOT = Total Value Of Imports minus (➖) Total value of exports.
Answer:
True
Explanation:
The nominal GDP is divided by the real GDP to calculate GDP deflator which is used to calculate the CPI and Inflation rate. So it is true that the GDP delfator is used to calculate inflation rate.