The statement "bikes shortage should be developed" is correct.
The following information should be considered:
- In the case when the firm wants to sell the product at a lower price so there should be a product shortage.
- The demand and supply should not achieve at equilibrium.
- There is no inelastic demand that should be developed.
- The no of bikes generated should not be increased.
Therefore we can conclude that The statement "bikes shortage should be developed" is correct.
Learn more about the product shortage here: brainly.com/question/12596577
Answer:
Indirect; investment.
Explanation:
John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.
The Keynesian link between the money market and the goods and services market is indirect. Changes in the money market must affect the investment market before the goods and services market is affected.
According to the Keynesian Transmission Mechanism, the link between the money market and the goods and services market is indirect; because at first, short-term interest rates are lowered by an increase in the supply of reserves and then with time both the bond and bank loan rates falls. Consequently, this would make investments and aggregate demand (AD curve shifts rightward) to rise or increase as a result of the low cost of capital for investors and by extension it boost the level of production or quantity of output (real gross domestic product or Real GDP).
<em>This ultimately implies that, the interest rates affects the real and costs of capital (monetary changes). </em>
Answer:
Explanation:
a. If you believe that the term structure next year will be the same as today’s, calculate the return on (i) the 1-year zero and (ii) the 4-year zero.
b. Which bond provides a greater expected 1-year return? O 1-year zero-coupon bond O 4-year zero-coupon bond
The return on one year bond is = 5.2%
The price of 4 year bond today

Price of 4 year bond today = 807.22
If yield curves is unchanged, the bond will have 3-year maturity and price will be

If yield curves is unchanged, the bond will have 3-year maturity and price will be = 854.04
Return

Return = 5.8%
The longer term bond has given the higher return in this case at it's YTM fell during the holding period(4 -year)