Answer:
A. buy; rise; fall
Explanation:
As for the provided information, we know,
As the supply of money exceeds the demand people will have more investing power, accordingly people will <u><em>buy</em></u> more bonds,
as more and more people will try to buy the bonds the price for bond because of high demand will automatically due to demand and supply proportion will <em><u>rise,</u></em>
and then to control the demand of bond, and control the purchase of bond, the nominal interest rate provided on bonds will <em><u>fall.</u></em>
Answer:
As the first payment occurs on option 7 n interest rate higher enough can make the 50 dollars received first make the difference.
The switch produced at a rate of :
300%
Interest rate below this mark favor option 6
while higher than this favor option 7
Explanation:
Option 6
perpetuity of 100 discounted 1.5 year
perpetuity of 50 every 3 years discounted 3 years
as the payment are every three years we calcualte an equivalent rate:
Option 7
perpetuity of 50 discounted 1 year
perpetuity of 100 every 2 years discounted 2.5 years
equivalent biannual rate
having the formulas
we can do it on excel solver to look at which rate the switch produces
Answer:
Decrease by $250,000
Explanation:
Calculation for what would be the effect on net income.
We would be using Differential Analysis method to find the effect on the net income
Differential Analysis
Continue with Luggage Department; Eliminate Luggage Department; Effect on Income
Sales
1,000,000 0 -1,000,000
Variable cost
-250,000 0 250,000
Direct fixed costs
-500,000 0 500,000
Indirect fixed costs
-300,000 -300,000 0
Net Income
-$50,000 -$300,000 -$250,000
Therefore in a situation where the luggage department is eliminated, the income would decrease by $250,000
Answer:
Sociological School of jurisprudence.
Explanation:
The Sociological School of Jurisprudence believes that both laws and societies are closely related to each other. It states that laws are social phenomenons, therefore they evolve as societies evolve. Laws have a major impact on how societies function, but the laws themselves originate from societies' needs.
For example, less than 100 years ago homosexuality was illegal in most of the world and homosexuals would be punished with jail time or even killed in some countries. Now western societies (North and South America, most of Europe and Australia + NZ) have changed and accept homosexuality as something normal. But there still exist societies where homosexuals are criminals and are still sent to jail or killed.
