The actions of the consumers in buying more gasoline when prices drop is the<u> income effect. </u>
<h3>What is the income effect?</h3>
- It is one of the determinants of demand.
- When market prices drop or income rises, consumers have more money to buy more goods.
The price of gasoline dropped and this increased the relative income of consumers because they were able to buy more gasoline.
This is therefore the income effect.
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The average nominal risk premium on the long-term government bonds was 2.6 percent.
A risk premium is the expected investment return on an asset that is higher than the risk-free rate of return. The risk premium on an asset is a form of compensation for investors. It compensates investors for tolerating the additional risk in a given investment over that of a risk-free asset. Subtracting the return on risk-free investment from the return on investment yields the risk premium.
The nominal risk premium is:
Nominal Risk-Free Rate - Inflation Premium = Real Risk-Free Rate. Nominal rates are the rates we encounter on a daily basis, such as interest rates from banks and other financial institutions.
Nominal risk premium = 6.1 % -3.5 %
= 2.6%.
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<span>Student loans, which are given to those in college by the federal government, are most commonly known as the loans with the small interest rates. These loans are fixed rates and will not increase overtime, they just accumulate monthly untilt he loans are paid off. </span>
Fair use allows individuals to break copyright so long as they b. <span>Can prove they are not infringing on copyright.
Using another person's work without his permission is considered copyright infringement. However, fair use allows people to use other people's work without their permission, as long as the works used are for commentary, criticism, new reporting, or educational purposes. As long you can prove that a work was not used for infringement purposes, you can break copyright.</span>
Answer:
See explanation section
Explanation:
The five activities of the operating cycle of a merchandiser with credit sales include the following activities. The arranging activities after merchandise acquisition are as follows:
D. Purchase merchandise; → A. Prepare merchandise for sale; → C. Make credit sales to customers; → E. Monitor and service accounts receivable; → D. Collect cash from customers on account.
