The economic growth and tax alleviation reconciliation act of 2001 expansionary or contractionary: sweeping U.S. tax.
Economic growth can be described as the increase or development inside the inflation-adjusted market price of the products and services produced by an economic system over a certain period of time. Statisticians conventionally measure such growth because the percent charge of growth is inside the real gross domestic product or actual GDP.
Economic growth method a boom in actual GDP – a boom inside the fee of countrywide output, income, and expenditure. essentially the benefit of financial increase is better residing requirements – higher actual incomes and the capacity to dedicate greater resources to areas like health care and schooling. extensively talking, there are fundamental assets of economic growth: growth in the size of the body of workers and growth inside the productivity (output in step with hour worked) of that team of workers. either can increase the overall size of the economy however best sturdy productivity growth can grow according to capita GDP and earnings.
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Answer:
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Answer:
The options for answering this question would be the following:
A) higher; lower
B) lower; lower
C) higher; higher
D) lower; higher
The correct answer is: A) higher; lower.
Explanation:
The price of a bond can be above or below its parity for many reasons, including interest rate adjustments, if the credit rating of the bond has changed, supply and demand, a change in the creditworthiness of the bond issuer , if the bond has been redeemed or if it is likely to be (or not) redeemed, a change in prevailing market interest rates, and an endless number of other factors.
As with other financial assets, bond prices are determined by supply and demand. Each government sets the supply of state bonds, issuing more if necessary. Demand, on the other hand, depends on whether or not it is an interesting investment.
Interest rates can have a major impact on bond demand. If interest rates are lower than the coupon on a bond, the demand for that bond will increase - it represents a better investment. But if interest rates rise above the coupon percentage, demand will drop.
Some bonds are actively traded, while others may have no activity (there are neither buyers nor sellers interested) for weeks. As a general category, municipal bonds tend to be more sensitive to supply and demand forces than other fixed income categories. This has the net effect of increasing your market risk: If your bond is not popular with other investors at a time when you need to sell, the price you will get for the bond in the secondary market will be hit.
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➷ It is an example of 'hard power'
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