Answer:
A change in the real money supply can result either from change in the nominal money supply through Federal Reserve policy ( holding the price level constant) or from a change in the price level( holding the nominal money supply constant).The change in the nominal money supply causes a shift of the aggregate demand curve, whereas a change in the price level causes a movement along the aggregate demand curve.
Explanation:
Answer:
D: Optimum Order size
Explanation:
Economic Order Quantity (EOQ) is a formula applied in logistic and supply chain management to calculate a business's ideal order size. As the name suggests, the order EOQ provides an order quantity that makes economic sense.
Economies of scale suggest that a bigger order size is better because the business will save transport costs. However, ordering in large quantities increases the cost of holding stock. The economic order quantity strikes a balance between these two important factors.
Answer:
8.53 years
Explanation:
Calculation for the duration of the bond
The first step is to calculate for Change in Bond Price
Change in Bond Price = -(30)/1,170
Change in Bond Price = -0.0256×100
Change in Bond Price =-2.56%
Second step is to find the Effective Duration
Effective duration = -0.0256/0.0030
Effective Duration = 8.53 years
Therefore the duration of this bond will be 8.53 years
Answer:
c. The price of Bond A will decrease over time, but the price of Bond B will increase over time
Explanation:
Bond A has a higher coupon rate than market thus, investor will accept to purchase the bond for a higher price until the YTM of this bond equals the market rate
Bond B is the opposite, is paying lower thus, will we purchase for less.
As times passes both will get their market value closer to the face value of the bond because, at maturity the bond will pay 1,000.
Making Bond A lower his price while B increases.
Answer and Explanation:
an Advocate of EMH believes that investor are kin to analyze and uncover any new information which may generate greater returns on the investment. also for that purpose they are willing to spend time and resourses.
it acts as an incentive for them as they believe efficient pricing of security depends upon requirement of rigorously efficient market information.
