Solution :
It is given that :
Amount of investment or the principle amount , P = $ 100
Time of investment , t = 6 years
Rate of interest compounded annually r = 6 %
Therefore the future amount of this investment in a 6 year time is given by,
Therefore, after 6 years the investment of $ 100 will give an amount of $ 141.
The corridor is the vertical section of the supply curve of reserves in the federal fund market.
Answer:
The answer would be PRICE SIGNALING
Explanation:
Price signaling may occur when consumers have imperfect information about product quality. To infer quality, consumers may rely on previous experience or may use some of the product’s observable characteristics, such as the product’s price. We examine the scenario whereby the firm can endogenously change consumers’ beliefs about the product’s quality by altering both the price and quality of its product. Our main findings are that, in this type of setting, price signaling causes the firm to raise its price, lower its quality, and dampen the degree to which it responds to cost shocks. If the cost of adjusting quality is sufficiently high, the dampening effect is pronounced in the downward direction, meaning that price signaling causes prices to respond less to cost decreases than cost increases.
30-minute launch window opens at 10:56 p.m.
