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fredd [130]
3 years ago
7

Assume the Expectations Hypothesis regarding the term structure of interest rates is correct.

Business
1 answer:
S_A_V [24]3 years ago
6 0

Answer:

2.5% is the current two years interest rate

Explanation:

If the first year interest rate is 2% and expected coming year interest rate is 3% based on the hypothetical projection which is believed to be correct, then the interests rate for the two years will be the average of the interest of the two years in focus which gives us:

Current IR = IR (yr 1) + IR (yr 2) / no of years

Current IR = 2 + 3 / 2 = 2.5

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Answer: A limited liability company

Explanation:

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The characteristics of a limited liability company includes:

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2. Members have the option of managing the company by themselves or employing managers.

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3 years ago
Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and de
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Answer:

A). Decrease the money supply so interest rates rise.

Explanation:

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3 years ago
Read 2 more answers
Meaning of jobbers in business studies<br>​
Leni [432]

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3 years ago
A corporation purchased manufacturing equipment for $100,000, with an estimated useful life of 10 years and a salvage value of $
bulgar [2K]

Answer:

The second year’s depreciation for this equipment using the straight line method is 8,500

Explanation:

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3 years ago
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