Hello <span>Gabbypittman20!
Answer:This answer is very tricky...but at least you have a teacher to help you.
</span><span>The answer to this question would
buy new clothes before buying a computer. Explanation:
See, this is a Need or want question. You NEED clothes but you WANT a computer. Get it? contact me for more information.
FLVS teacher,
~Sarah Bunkly
</span>
The reason that interest rate risk is greater for <u>long</u>-term bonds than for <u>short</u>-term bonds is that the change in rates has a greater effect on the present value of the <u>Par Value</u> than on the present value of the <u>Coupon</u>.
<h3>What is a Long-term Bond?</h3>
Long-term bonds are investments that span a maturity term of at least 10 years and up to 30 years.
They usually pay a higher interest rate than the short-term bonds which span between a year and three years.
See the link below for more about long-term bonds:
brainly.com/question/3521722
Inflation is the situation in which the same amount of money is worth less- meaning that it will have less purchasing power (so one can buy less for 100 dollars now than 10 years ago) - the correct answer is "purchasing power". Lower purchasing power reduces the number of goods that people can afford.
The type of fiscal policy which might be most effective in correcting this problem is:
- <u>C) Increasing government spending in order to increase aggregate demand.</u>
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According to the given question, we are asked to state the type of fiscal policy which might be most effective in correcting this problem of the village which loses its aggregate output.
As a result of this, we can see that the fiscal policy which can solve this problem is by increasing the government spending so that the aggregate demand would be <em>increased</em>.
Therefore, the correct answer is option C
Read more here:
brainly.com/question/24777291
