Answer: increase in the yield to maturity will lower a bond's coupon rate and hence its price.
Explanation:
The yield to maturity is the percentage of return that'll be paid on a bond as long as the investor holds the security till it matures.
It should be noted that the price of a bond moves inversely with the yield to maturity as a rise in the yield to maturity leads to a reduction in the bond's price and a reduction in the yield to maturity will bring about increases in price of a bond
The fundamental purpose of the starting phase of a project is ________.the answer is: (s<span>etting the ground rules for the collaboration)</span>
Answer:
Currently the price of homes has exceeded the 2006 peak, just before the housing bubble burst. The price index has increased more than 40% since 2012.
It has been many years now of a strong economy, with an economic expansion lasting for 11 years (since June 2009), which is actually record breaking. A lot of economists were expecting a recession soon, with the current health crisis not helping, and the recession finally arrived on June 2020.
The combination of historically high prices for homes and an economic recession can be very hurtful. The advantage of the current situation is that the level of delinquent or subprime mortgages is currently much lower than 14 years ago. Actually, the amount of debt per household has decreased since 2006, and is quite stable right now at moderate or low levels. Many households spent much of the past years paying off debt, so they didn't have time to take new debt.
If the recession gets worse, a price correction will be inevitable, but it wouldn't be as large as the 2007 decrease. Only in a few cities in California, Washington, Nevada and Oregon can you find situations similar to 2006, where a strong supply hasn't been enough to balance the prices due to a stronger demand and high mortgage debt. But even there, the situation will not be as bad.
Answer:
The correct answer is option d.
Explanation:
If a demand curve is linear and downward sloping, different points on the line can show different values of slope. The value of slope will be equal to the ratio of change in price to change in quantity demanded. The value of slope will be the same throughout the line.
The price elasticity is the ratio of change in quantity to change in price. The price elasticity can be different for different points on the demand curve.
The points on the lower parts are more inelastic while the points on the upper portion are more elastic. The midpoint represents unit price elasticity.
Since the upper portion is more price elastic, an increase in price will cause a more than proportionate decrease in the quantity demanded. This will cause the total revenue to decrease.
Answer: less than the multiplier effect of a change in government spending.
Explanation:
The multiplier effect of government transfers refers to the measure by which the aggregate demand will increase by as a result of government transfers increasing.
This multiplier is less than the multiplier effect of a change in government spending. This is because government spending affects more people in the economy as it targets both companies and consumers. Government transfers on the other hand, target only welfare and unemployment payments amongst others so it cannot have the same effect as government spending.
