The correct answer is d). We have that government spending can also give way to products and services, just like private enterprises, thus there is no double-counting there. Services such as haircuts have their own value, which are separate from any other material products. Finally exports are also not counted twice; Raw materials though would be counted twice if we counted them for the GDP since their value is incorporated in the value of the final product. For example, we cannot count towards the GDP the value of rubber production in a country since then, if we counted the value of the tires too, we would count the value of the rubber in the tires twice (one time as rubber/ one time as part of the tire).
Answer:
d. other things being equal
Explanation:
"Ceteris Paribus" refers to a latin phrase which means other things remaining equal.
The term is used to convey the constancy of other variables while establishing a relation between factors.
For instance, in the law of demand, ceteris paribus is used to convey factors other than price being constant.
The term is often used to convey cause- effect relationship between parameters.
In economic context, the term conveys the effect one variable casts over another.
Answer:
Bond Price = $1115.075775 rounded off to $1115.08
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM or market interest rate will be,
Coupon Payment (C) = 1000 * 0.067 = $67
Total periods (n) = 14
r or YTM = 0.055 or 5.5%
The formula to calculate the price of the bonds today is attached.
Bond Price = 67 * [( 1 - (1+0.055)^-14) / 0.055] + 1000 / (1+0.055)^14
Bond Price = $1115.075775 rounded off to $1115.08
The answer is: A. Equity financing
In most cases, companies choose to do this if they want to expand their operation.
Corporations do this by selling the shares of their company to the public or a select group of investors. When the partial ownership is traded with capital, the corporations would have an obligation to share their profit to the shareholders in the form of dividend.
