Answer:
C. Annuity B has a smaller present value than annuity A
Explanation:
Answer:
The maximum possible change in real GDP is $25 million
Explanation:
Data provided in the question:
Increase in investment = $5 million
Marginal propensity to consume = 0.8
Now,
Spending multiplier, m = 1 ÷ [ 1 - Marginal propensity ]
or
m = 1 ÷ [ 1 - 0.8 ]
or
m = 5
Therefore,
Increase in GDP = m × Increase in investment
or
Increase in GDP = 5 × $5 million
or
Increase in GDP = $25 million
Hence,
The maximum possible change in real GDP is $25 million
Answer:
(C). Basing the credit decision on the receipt of public assistance income.
Explanation:
According to the Equal Credit Opportunity Act, applicants who have the capacity to contract are eligible to apply for credit and should not be discriminated against by any creditor.
<u>The act prohibits the creditor from refusing to grant credit on the basis of</u> age, religion, race, sex, marital status, or <u>whether the applicant receives public assistance income.</u>
Answer:
B. being unwilling to sell a vase for a price that is greater than the price you would be willing to pay to buy the vase if you didn't already own it
Explanation:
Answer:
The correct statement is They obligate the issuing company to repay the bonds at a specific date.
Explanation:
Bonds are issued by governments and corporations when they want to raise money. By buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date.
A bond is referred to as a fixed income instrument since bonds traditionally paid a fixed interest rate. They are high-risk investments for the issuing company, while they're low-risk for investors.
After repayment of bond on a specific date, the periodic interest that accrue will be paid to the investors subsequently.