What is the name of the theory that a nation's power is based on its wealth?

One-year Treasury securities yield 4%. The market anticipates that 1-year from now 1-year Treasury securities will yield 2.1%. I

Lesechka [4]

Answer:

3.05%

Explanation:

According to Pure Expectation Theory, the future short term interest rates are actually the forward rates.

Mathematically,

(1 + r2,0)^2 = (1 + r1,0)^1 * (1 + r1,1)^1

Here,

r2,0 is the rate of interest for 2 year treasury security from today

r1,0 is the rate of the interest for 1 year treasury security from today

r1,1 is the rate of the interest for 2 year treasury security from Year 1

By Putting Values, we have:

(1 + r2,0)^2 = (1 + 0.04)^1 * (1 + 0.021)^1

(1 + r2,0)^2 = 1.06184

By taking square-root on both sides, we have:

(1 + r2,0) = 1.0305

r2,0 = 3.05%

8 0

4 years ago

When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quanti

olga55 [171]

Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A

Explanation:

The following can be deduced form the question:

P1 = $50

P2 = $70

Q1 = 500 units

Q2 = 400 units

Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100

Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100

% change in quantity = (400 - 500)/(400 + 500)/2 × 100

= -100/450 × 100

= -22.22%

% change on price = (70 - 50)/(70 + 50)/2 × 100

= 20/60 × 100

= 33

Price elasticity of demand = % change in quantity / % change on price

= -22.22 / 33

= -0.67

This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.

Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A

7 0

3 years ago

A concrete block making company is developing an aggregate capacity plan from the following sales forecast for its 6” and 8” con

prohojiy [21]

We need to see that table pls send a picture to it also if u may pls mark me braliest

7 0

3 years ago

An ISP is granted a block of addresses starting with 150.80.0.0/16. The ISP wants to distribute these blocks to 2600 customers a

stepan [7]

A the first groupings has 200 medium-side busi es-es each needing 128 addresses

4 0

3 years ago

The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% co

irinina [24]

Answer:

Equivalent units

Materials = 12,700 units

Conversion cost = 11,940 units

Explanation:

Equivalent Units E.U) are notional whole units which represent incomplete work and are used to apportion costs between between work in progress and completed work.

Equivalent Units = Degree of completion (%) × units

We will use the weighted average method

Weighted average method

The weighted average method of valuation of work in progress does not separate opening work-in progress from the newly introduced.

Using the weighted average method

Equivalent unit for material cost

Since direct materials are added at the the beginning of the production process the equivalent unit of direct material

EU = (100% × 10,800) + (100% ×1900) = 12700

Note that 100% represent the degree of completion.

Equivalent unit for conversion cost

Item Equivalent unit

Transferred out 100%× 10,800 = 10,800

Closing inventory 60% ×1900 = 1140

Total equivalent unit = 11,940

5 0

3 years ago