Answer:
no
Explanation:
An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future.
Answer:
The answer is:
10% fixed rate = Company X's external borrowing (rate);
11.8% fixed rate = Company Y's payment to X (rate);
LIBOR + 1.5% = Company X's payment to Y (rate);
LIBOR + 1.5% = Company Y's external borrowing rate.
Explanation:
First, X will borrow at 10% fixed and Y will borrow at LIBOR + 1.5% floating; both at notational principal of $10 million.
Then; they will enter into a interest swap where:
- X will pay to the swap the interest rate of Libor +1.5% and receive from the swap the fixed interest rate of 11.8%. Thus, X interest income and interest expenses will be: Borrowed at fixed 10% and payment at Libor+1.5% to the swap; Receipt of 11.8% from the Swap=> Net effect: X borrowed at LIBOR - 0.3% ( saving of 0.3%).
- Y will pay to the swap the fixed interest rate 11.8% and receive from the swap LIBOR +1.5%. Thus, Y interest income and interest expenses will be: Borrowed at LIBOR +1.5 and payment 11.8% fixed to the swap; Receipt of Libor + 1.5% from Bthe Swap=> Net effect: Y borrowed at 11.8% fixed ( saving of 0.2%).
Answer:
A. aggregate demand intersects short-run aggregate supply
Explanation:
Short run occurs when the amount a firm wishes to supply is equal to the amount demanded from the consumers. It is the area on the graph where the aggregate demand curve intersect with the short run supply curve.
Or, simply put, when the aggregate output supplied is equal to the aggregate output demanded. The equilibrium is made up of equilibrium prices and quantity.
Answer:
C, they analyze police reports about crimes reported by victims
Explanation:
Option A is wrong because is disregard hard crimes that conducted by blue-collar people (such as theft, store robbery, or even gang attacks).
Option B and D are wrong because 'Potential' victims do not always translate to actual victims, This will make the data that collected by the firm become misleading. They wouldn't find out the type of crimes that often happen in real life and wouldn't be able to design a proper solution for them.
Option C is the best choice from the available options. Even though it's not perfect. There are a lot of crimes that often goes unreported by the victims (such as domestic abuse)
Answer: Option (A) is correct.
Explanation:
Correct Option: Normal profits because economic profits will attract new firms and there are no entry restrictions.
In a monopolistically competitive market, firms will earn an economic profit in the short run, so new firms attracted with these profits and decided to enter into the market in the long run.
There is no barriers on entry and exit of the firms in the monopolistically competitive market. When new firms enters into the market, as a result supply of differentiated products increases.
This causes the firm's market demand curve to shift leftwards. It will continue shifting to the left in the firm market demand curve till the point where it is nearly tangent to the average total cost curve.
At this point, firms earns zero normal profit and can earn normal profits in the long run same as a perfectly competitive firm.
