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Oksanka [162]
3 years ago
8

If the government imposes a price floor on wheat at $5 and agrees to purchase any surpluses, how much will the government be for

ced to spend?
Business
1 answer:
eimsori [14]3 years ago
7 0
<span>The answer is that the government will be forced to spend $15,000,000.
government imposes a price floor on wheat at $5 
there will be a surplus of $3,000,000
</span><span>the government will be forced to spend = $5 x $3,000,000 = $15,000,000</span>
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Assume that John's marginal tax rate is 40%. If a city of Austin bond pays 6% interest, what interest rate would a corporate bon
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Answer:

B. 10%

Explanation:

Given that

Tax rate = 40%

Net tax rate = 6%

Recall that

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Therefore,

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3 years ago
Which of these is an example of the line marked "Artificial Price"?
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As the question is incomplete and examples are not given here but in actual and complete question options are:
<span>Farm subsidies
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Minimum wage
Rent controls
</span>And among these options, the correct option is "Farm subsidies".

Farm subsidies are viewed as a prime zone for spending reductions, yet are restricted by the effective homestead hall and individuals from Congress from agribusiness states.
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3 years ago
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You are a sales director for a company and have noticed employees are showing up towork dressed inappropriately. customers have
pochemuha
You could say something like "From this day forth all staff in the in-house sales department and <span>the traveling sales department. All men must wear suit and tie, and all women must be dressed in jeans and a long sleeve shirt!?"</span>
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2 years ago
Select the true statement about default risk. It is the risk that the bond's price will fall below its par value. Bondholders ha
Novosadov [1.4K]

Answer:

Bondholders have a degree of legal protection against default risk, but it is not comprehensive.

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 par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium. A bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance while a bond that is issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.

Default risk in bonds refer to the risk that a bond issuer (borrower) is unable to pay the principal or interest agreed upon in the contract with the bondholder (lender) in a timely manner.

Hence, the true statement about default risk is that bondholders have a degree of legal protection against default risk, but it is not comprehensive.

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3 years ago
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