Consider the wealth effect, interest rate effect, and international trade effect. Of these, the wealth effect is the most significant and the international effect is the least significant.
<h3>What is the wealth effect?</h3>
This is the theory that states that people spend more money on commodities as they experience an increase in their wages.
<h3>What is the international effect?</h3>
This is the theory that the given differences that exist in nominal interest rate of countries is useful for prediction of changes in interest rate.
Read more on wealth effect here; brainly.com/question/26960365
Answer:
bonds require payment of periodic interest and par value at maturity bonds.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
The disadvantages of bonds are listed below as;
1. Bonds typically require a payment of periodic interest.
2. Bonds require a payment of the principal amount.
3. Bonds can decrease a person's return on equity.
4. The payments of a bond by the bond issuer may become burdensome when cash flow and income are quite low.
The economic term for the practice of assigning small parts of a complicated job to individual workers who specialize in doing there just smart part is called spe<span>cialization</span><span>. Specialization is achieved when the assigned personnel is master of his art and the resources are focused on the particular field. This leads to an efficiency called allocative efficiency.</span>
