Answer:
the exchange rate and the trade deficit to decrease.
Explanation:
A deficit can be defined as an amount by which money, falls short of its expected or required value.
Generally, deficit in financial accounting is usually as a result of expense exceeding revenue or revenue falling below expenses at a specific period of time.
For instance, when liabilities exceeds assets or import exceeds export there would be a deficit in the financial account.
Generally, a deficit on the current account ultimately implies that the value of goods and services exported is lower than the value of goods and services being imported in a particular country.
In 2013, government began with a budget deficit and a trade deficit. During the year, the government changed its policy and is now running a budget surplus.
Hence, this change in policy will cause the exchange rate and the trade deficit to decrease if all other factors hold constant
Answer:
25.94%
Explanation:
Assume, Face value of bond =$1000
Purchase price of twenty year zero coupon bond = 1000/((1+i)^N)
. Where, yield = 5% =0.05
, N= number of years to maturity =20
==> Purchase Price = 1000/(1.05^20)
Purchase Price = 1000/2.65329770514
Purchase Price = $376.89
Selling Price after one year: 1000/(1+I)^19. Where i=yield=4%=0.04, N=19
Selling Price=1000/(1.04^19)
Selling Price = 1000/2.10684917599
Selling Price = $474.64
Rate of Return = (474.64/376.89) - 1
Rate of Return = 1.25935949481281 - 1
Rate of Return = 0.2594
Rate of Return = 25.94%
Answer:
$10.10
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.
Consumer surplus = willingness to pay of a consumer - price of the good
Producer surplus is the difference between the price of the product and the least price the producer is willing to sell his product
Producer surplus = price of the product - least price the producer is willing to sell his product
Consumer surplus
Jeff : $7.25 - $5 = $2.25
Samir: $9 - $5 = $4
Total consumer surplus = $2.25 + $4 = $6.25
Producer surplus
Ist manufacturer = $5 - $3 = $2
2nd manufacturer = $5 - $3.15 = $1.85
Total producer surplus = $2 + $1.85 = $3.85
Total social welfare = $3.85 + $6.25 = $10.10
I hope my answer helps you
1. D. to participate in the day-to-day operations.
Let's say that you buy a stock for microsoft, it doesn't make you able to come to their offices and help them handling the customers.
2. C. the risk of bankrupt is less
when you sell your company's stock to other buyers, that buyers will also take the risk from all your company's activity because technically they own a part of your company, which make the risk of going bankrupt is less, but you surrender a part of ownership of your company
3. B. Preferred Stock
Where a company liquidates its assets, they will distribute the payment to all the holders of preferred stock first.
If there's any leftover after the company distribute the payment to preferred stock holders, than that leftover is distributed to the common stock holders
Hope this helped you out
