Customer's perceptions set the price ceiling - if they see the price as too high they won't buy it, demand will fall, and so will the equilibrium price. Their perception on the fairness of the price will affect how high the price can go before losing sales.
Answer:
B
Explanation:
Inflation is a persistent rise in general price level.
When inflation is expected, Investors ask for an increase in nominal interest rate in order to maintain the value of investments.
When a security becomes more risky, the chances of default of the security increases, so investors ask for an higher total return in order to compensate for the increased risk of default.
Risk premium increases with the increase in risk of a security
Investors are less willing to hold the bond because there is the risk that the security won't be able to make the contractual payments
<span>Suppose you were hired to calculate the Gross Domestic Product (GDP) by using the expenditure approach. You would count buying a new house as investment.
</span>Investment<span> is one of the items to consider to determine GDP by expenditure approach which includes residential construction, since residential buildings can be rented out, even if they are occupied by owners.</span>
The Chavez family has two options when applying a house loan for 30 years which is amounting to $250,000. First, the will not take the points with a monthly payment of $1580 while if they take the points, they will have a monthly payment of $1560. What they did was they did not buy the points and the reason for this was they are planning to sell the house after 5 years.
I believe the answer is: The number of fiscal quarters the employee worked during his or her lifetime and the amount of money the employee contributed to the Social Security Trust Fund.
The amount in Social security trust fund is being added through direct deduction of the employee's base salary before the pension time. Which mean that as the employee use less of their money for their consumption during productive years, the amount of money that they would receive after retiring would be increased.
