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2 years ago

In a planned economy, prices of commodities are controlled by _________.

Business

1 answer:

GalinKa [24]2 years ago

4 0

The correct answer is C. The government

Explanation:

The key feature of a planned economy is the strong influence and control of government in the economy. Indeed, in a planned economy it is the government the entity that decides on trade and production, this includes the prices of goods and the types of products that should be manufactured. Moreover, this does not occur in market economies because in these customers, produces and the law of supply/demand determine factors of the economy. According to this, in a planned economy prices are controlled by government.

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Which of the following is an example of deregulation? A. The price of cable TV has risen to $40 a month in November 2013. B. B

stiks02 [169]

Answer: Option C

Explanation: In simple words, the removal of restrictions on some particular product or industry by the authorities is called deregulation.

Deregulation is the process that is used when the Govt of any country wants to develop a particular industry and wants the free market flow in that industry or that particular product.

This process usually happens in economies due to the political pressures. Hence from the above we can conclude that the correct option is C .

5 0

2 years ago

Which of the following statements is most correct? a. All else equal, if a bond’s yield to maturity increases, its price will fa

Andrei [34K]

Answer: d. A B and C are correct.

Explanation:

A bond's price and it's Yield to Maturity (YTM) are inversely related such that when Yield to Maturity rises, the price of the bond falls. This is a because a higher YTM signifies that the bond is riskier so it will compensate by being cheaper.

If a bond is downgraded by Ratings agencies then it means that the bond is now riskier. As it is riskier investors will charge more interest for taking on the risk. The interest is the YTM and so it rises.

A Subordinate bond means that if the company were to go into bankruptcy for instance, the Subordinate bond would only be paid for after the bond that is not Subordinated. This means that there is a chance that Subordinate bond holders will not get anything from the liquidation of the company. Investors will therefore charge a higher YTM to cater for the risk that this happens.

4 0

2 years ago

2. In a recent large PowerBall lottery, the prize was reported to be worth $590 million, which could be taken in 25 equal annual

deff fn [24]

Answer:

5.5%

Explanation:

This is an Annuity Due question. In an annuity due, recurring payments occur at the beginning of the yearIt is asking for the RATE. Using a financial calculator(on BEG mode), input the following;

Duration; N = 25

Recurring payment; PMT = 23.6

Present value ; PV = -334

One-time future cashflow; FV = 0

Then compute the interest rate; CPT I/Y = 5.499%

Therefore, the lottery commission is using about 5.5% interest rate.

3 0

3 years ago

Neo-mercantilists equate political power with economic power and economic power with:______a. corruption.b. a balance-of-trade s

butalik [34]

Answer: balance of trade surplus

Explanation:

Neomercantilism is a policy regime whereby export was encouraged while import was, discouraged. It also controls capital movement, and advocatee for currency decisions to be a government decision.

Neo-mercantilists equate political power with economic power and economic power with balance of trade surplus which is when the value of exports are more than that of imports.

7 0

2 years ago

Calculate the values for each of the questions. Assume that in each country there are no taxes, international trade, or inflatio

Inessa [10]

Explanation:

a. The computation is shown below:

As we know that

Multiplier = 1 ÷ 1 - MPC

1.5 = 1 ÷ 1 - MPC

So, MPC is 0.3333

Now the real GDP is

= Multiplier × Government spending

= 0.3333 × $70 billion

= $105 million

So the change in real GDP is

= $105 million - $70 million

= $35 million

b. The computation is shown below:

As we know that

Multiplier = 1 ÷ 1 - MPC

Multiplier = 1 ÷ 1 - 0.6

So, multiplier is 2.5

Now the real GDP is

= Multiplier × Government spending

= 2.5 × $16 billion

= -$40 million

c. As we know that

Real GDP = Multiplier × Government spending

$280 billion = Multiplier × $70 billion

So, the multiplier is 4

Now the MPC is

Multiplier = 1 ÷ 1 - MPC

4 = 1 ÷ 1 - MPC

So, the multiplier is 0.75

3 0

2 years ago