People often have different expectations. If people have rational expectations, the sacrifice ratio could be much smaller than suggested by the short-run Phillips curve is a false a statement.
- The sacrifice ratio is said to be smaller than suggested by former estimates. The short-run phillips curve will ten to shift downward and the economy would reach low inflation very fast.
Rational expectations is known to be an economic theory. It simply states that when making decisions, individual agents will capitalize their decisions on the information that is best and available and they also learn from past trends.
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Answer:
a. involves serving buyers in the target market niche at a lower cost and a lower price than rival competitors.
Explanation:
A focused low-cost strategy involves serving buyers in the target market niche at a lower cost and a lower price than rival competitors.
There are 2 market strategies involved here: a low-cost strategy in a niche market segment.
Hence, Focused Low-Cost Strategy is when a business focuses on a niche, and since a small business cannot feasibly achieve low prices on all of its products, it can try and focus on a small niche and try to be the lowest cost provider in the market for that specific niche.
Answer:
$929 approx
Explanation:
<u>Assumption</u>: <u>Since face value of the bond is not provided, it has been assumed to be $1000 and solved accordingly.</u>
The present value of a bond i.e bond price is the sum total of the present value of it's future coupon payments in addition to redemption value, both discounted at yield to maturity rate. It is expressed as
where, = Present Value of the bond
C = Annual coupon payment
YTM = Yield to maturity rate
n = No of years to maturity.
Here, C = $55 (assumed par value of each bond as $1000)
YTM = 7.25% per annum
n = 5 years
Putting these values in above equation, we get,
Hence, 4.073 × 55 + 1000 × 0.7047
= $929 approx
Hence, Pierre should pay less than it's face value for such a bond.
Answer:
Check the following explanations
Explanation:
The Federal Reserve is responsible for making monitory policies in the US. When the interest rates are increased by the Fed Reserve it lead's to cascading effects in the economy as a whole, it lead to :-
- Increased cost of borrowings, which reduces investments.
- Higher mortagage interest payments, leading to reduced usage, fall in the house prices.
- Increased Returns on Savings, leading to less expenditure and high saving behaviour of the people.
- Currency Appreciation, due to increased demand of local currency at the international market.
- Higher Government Debt Intererst Payments.
Answer:
Situation analysis
Explanation:
situation analysis is an analysis done before the start of a business and it is a part of a business plan. it includes an analysis of the firm's abilities, its potential customers, potential competitors and economy
Market analysis is the analysis of the market of a good. Market analysis includes :
- analysis of the customers and their purchasing patterns
- analysis of competitors
- an analysis of the economy
A SWOT analysis is an analysis of a firms strengths, weaknesses, and opportunities