The correct answer is the fourth.
In 2009, the TARP year the US economy was declining due to the severe subprime crisis that took place in 2008, which led to the bankruptcy of large banks.
If Congress passed a tax increase at the request of the president to reduce the budget deficit, but the Fed held the money supply constant, then the two policies together would generally lead to lower income and a lower interest rate.
<h3>What is
budget deficit?</h3>
When ongoing expenses are higher than regular operating revenue, a budget deficit results. Budget deficits may result from specific unforeseen circumstances and initiatives. Tax increases and spending reductions are two ways that nations might deal with budget problems.
Inflation, or the ongoing rise in prices, is one of the main threats posed by a budget deficit. A budget deficit in the US may lead to the Federal Reserve releasing more money into the economy, which fuels inflation. Year after year, ongoing budget deficits may result in inflationary monetary policy.
The relationship between deficits and interest rates is more clearly demonstrated when the deficits are used to fund government spending than by tax reductions. If tax cut recipients save part of the money they receive from the tax cut, the impact of the tax cut on interest rates should be minimized.
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Answer:
6.98%
Explanation:
Blunt's total market value = $86,000
stocks outstanding = 1,500
market value per share = $86,000 / 1,500 = $57.33
excess cash = $6,000
excess cash per share = $6,000 / 1,500 = $4
if excess cash is distributed, the price per share will decrease by $4 or by $4 / $57.33 = 6.98%
if instead of distributing excess cash among stockholders, the company repurchased treasury stock, then the stock price would probably increase, instead of decreasing.
Every point on budget line graph represents each number of possible unit that can be purchased with a given income.
<h3>
What is a budget line graph?</h3>
Budget line graph shows series of combinations of two products that can be consumed by an individual at a given price and income.
- Budget line is said to be a constraint line graph because an individual cannot go beyond the limits of consumption.
- Each unit of goods is indicated on the graph using with a dot and only the combination of the two goods that falls within budget can be purchased.
Therefore, every point on budget line graph represents each number of possible unit that can be purchased with a given income.
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Answer:
The correct option is B,$2,631,204
Explanation:
The amount Wine corporation would realize from the sale of the bonds is the present value of all cash flows payable by the bond which includes the annual interest payments as well as the principal repayment in 10 years.
amount of interest payment=$3,000,000*8%=$240,000
The $240,000 would be received by investors for 10 years
The principal is the face value of $3000,000 payable in year ten
Present of face value=$3,000,000*0.3855=$1156500
present value of all interest payments=$240,000*6.1446=$1474704
Total present values=$1474704
+1156500
=$2631204
