Answer:
The correct answer is (b) positive economics.
Explanation:
The positive or descriptive economy seeks to explain how the economy works based on reality, that is, empirically. Therefore, try to explain what it was, what it is and what it will be, explaining the consequences of different economic phenomena.
In making a positive economy, economists are considered to act as scientists, moving their moral considerations away from the reality analyzed. Thus, they focus on explaining the cause-effect relationships between facts and economic variables objectively.
The positive economy starts from an economic phenomenon and seeks to find its cause (what was) and its consequences (what will be). This is about establishing a chain of cause-effect relationships between the different economic phenomena, so that the consequences on the reality of any change in the variables studied can be known.
The type of bond which investors would buy that they may choose to exchange their bond for shares of common stock in the company is known as convertible bonds.
<h3>What is a Bond?</h3>
This refers to the fixed income investment which is used to show that a loan is taken by either an individual or corporation.
With this in mind, if an investor wants to later exchange their bond for shares of common stock in the company, then they would have to buy convertible bonds,
Read more about convertible bonds here:
brainly.com/question/9817093
Answer:
IF mrs Jones wants to make 14% on the bond this is her required return and what the ytm of the bond should be to make her want to buy the bond. Because the bond pays a coupon of 12% she will want to pay less than the face value of the bond, so that the overall return can be 14%. Whenever the coupon rate of the bond is less than the required return or ytm, the bond is sold at a discount. In order to find at what price should she buy the bond we will need a financial calculator and input the following
FV= 10,000
YTM= 3.5 ( We divide 14 by 4 to find the ytm because the bond has quarterly compounded payments)
PMT= 300 ( We find out the 12% of 10,000 and divide it by 4 because the bond has quarterly payments)
N= 48 (12 years into 4 because there will be a total of 48 quarters and 48 payments)
Put these values in a financial calculator and compute the PV
PV= 8,845
The present value of the bond is 8,845 if the required return is 14% which means she should be willing to pay $8,845 for the bond today.
Explanation:
Answer:
The answer is: Quantitative easing
Explanation:
Quantitative easing is a type of monetary policy in which the central bank purchases predetermined quantity or amount of government securities or other financial assets to increase the supply of money, encourage lending and investment and inject liquidity into the economy. It is a unconventional monetary policy which is used when the standard expansionary monetary policy is ineffective and during low or negative inflation.
<u>Therefore, the given policy is known as </u><u>Quantitative easing.</u>
