As a member of the Federal Reserve Board, in an inflationary situation I would suggest a change in the federal funds rate that would be accomplished by raising the base interest rate of the US economy. This would make bonds more attractive and people would stop consuming to invest in public debt securities. In addition, raising interest rates would discourage credit, causing banks to lend less. Since inflation is a monetary phenomenon caused by the excess of currency in circulation, these measures would have a downward effect on inflation, as they reduce the amount of money in circulation in the economy.
Answer:
B) Country A uses fewer resources to produce corn than Country B does.
Explanation:
An absolute advantage is a situation where a country or a company can produce some goods and services using fewer inputs compared to competitors. The company can produce more quantity of using the same amount of inputs than others. A country with an absolute advantage will manufacture a product at a lower cost than other countries or companies.
Absolute advantage enables companies and countries to gain from trade. Through specialization, a company will focus on what it can produce at a lower cost than others, and sell it. Country A has an absolute advantage if it can produce corn at a lower cost than country B.
Answer:
10.25%
Explanation:
The requirement which is Coupon rate can be calculated using EAR formula.
EAR = (1 + APR/n)^n - 1
EAR = (1 + 10.00%/2)^2 - 1
EAR = (1 + 0.1/2)^2 - 1
EAR = (1 + 0.05)^2 - 1
EAR = (1.05)^2 - 1
EAR = 1.1025 - 1
EAR = 0.1025
EAR = 10.25%
10.25% is the coupon rate for annually paying bond.
