Require the issuer to set aside assets to pay bonds at maturity.
Bonds that require the issuer to set aside a pool of assets used only to repay the bonds at maturity.
<h3>What is Sinking Fund Bond ?</h3>
A sinking fund is maintained by companies for bond issues, and is money set aside or saved to pay off a debt or bond.
- Bonds issued with sinking funds are lower risk since they are backed by the collateral in the fund, and therefore carry lower yields.
- example may be a company issuing $1 million of bonds that are to mature in 10 years. Given this, it creates a sinking fund and deposits $100,000 yearly to make sure that the bonds are all bought back by their maturity date
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The most likely result of this price control would be that the <span>demand for bread will fall, which could result in an excess supply. his excess supply in the market would ultimately force the hand of the manufacturers to stop the production of bread. I hope that this is the answer that has come to your help.</span>
Answer:
MPC = 0.4
Explanation:
Multiplier shows change in income due to change (increase) in investment, or change (decrease) in tax. It is calculated by Marginal Propensity to Consume, as follows -
Multiplier ie k = Δ Income / Δ (govt investment or tax) = 1 / (1 - MPC)
Given : ΔG ie tax fall = 60 ; Targeted income rise = Full employment - actual output = 2000 - 1900 = 100
k = ΔY / ΔG = 100 / 60 = 1.67
k = 1 / (1 - MPC) → 1 - MPC = 1 / k → 1 - MPC = 1 / 1.67 → 1 - MPC = 0.6
MPC = 1 - 0.6 → MPC = 0.4
Answer:
c. both a monopoly and a competitive firm
Explanation:
A monpolistically competitive firm is a firm that has the features of both a monopoly and a competitive firm
Characteristics of a monopoly in a monpolistically competitive firm:
1. Products are differentiated in a monpolistically competitive firm.
2. Firms are price setters.
Characteristics of perfect competition in a monpolistically competitive firm:
1. There is free entry and exist into the industry.
2. There are many sellers
I feel that the answer would be C as that would give it the most time to grow and build, but I have heard many times that IRA's can be better as far as tax. I would go with C, unless your class has specifically been leaning about IRA's.
