Answer:
A. Increase investment in long-term bonds
Explanation:
According to the Expectations hypothesis which is based on the principle that long-term rate is determined purely by current and future expected short-term rates, such that he expected final value from the accumulation of progression of short-term bonds approximates the final value from investing in long-term bonds.
Hence, given that when the interest rates fall, the prices of the bonds on the market already will rise, then it can be concluded that If the fund manager thinks that interest rates are going to fall, she should Increase investment in long-term bonds
Writes in their own language as used colloquially.
Answer:
The Jerry's adjusted basis in his partnership interest at the end of the year is $45,500
Explanation:
The adjusted basis of Jerry in his partnership is shown below:
= Partnership interest - Ordinary loss + long term capital gain + dividend - non deductible expense + cash contribution - share reduction
= $50,000 -$15,000 + $3,000 + $2,000 - $500 + $10,000 -$4,000
= $45,500
The ordinary loss, share reduction, and non deductible expense would decrease the Jerry interest in partnership firm while all other cost would increase his interest. That's why the amount is added and subtracted.
Hence, the Jerry's adjusted basis in his partnership interest at the end of the year is $45,500
Answer:
B. is equal to the total of frictional and structural unemployment.
Explanation:
The natural rate of unemployment is the sum of frictional and structural unemployment at any given time. Economists estimate that for the United States this rate is around 3.5%.
Unemployment has a natural rate because no matter how good the economy is doing, some people either do not want to work, are in between jobs (frictional unemployemt), or lack the skills necessary to get employed and need to undergo training (structural unemployment).
