All categories

3 years ago

The interest rate does not affect the intertemporal budget constraint. a. True b. False

Business

1 answer:

Kruka [31]3 years ago

6 0

Answer:

False

Explanation:

The correct answer is false because the interest rate does affect the intertemporal budget constraint.

A higher interest rate, will cause the budget line to pivot upwards while a lower rate will make the budget line to pivot downward.

The intertemporal budget constraint can used to show a decision on how to save. It refers to the constraint which an individual encounters when making choices for the present and for the future. It reflects a consumer's decision on the amount to consume in the present and the amount to save in the future.

You might be interested in

What is accounting

andre [41]

Answer:

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows. Accounting is the recording of financial transactions along with storing, sorting, retrieving, summarizing, and presenting the results in various reports and analyses. Accounting is also a field of study and profession dedicated to carrying out those tasks.

Explanation:

4 0

3 years ago

Processing a new employee's employment-related paperwork, acquiring necessary keys and identification cards, and establishing an

jeka94

The answer to this question is a part of Employee onboarding and orientation. An Employee onboarding is the process where a new employee will be welcomed in the company and will inform the new employee of the culture of the company, rules and regulations, and the new hired employee will also receives his or her identification cards, and other related paper works with regards the persons tasks. Also in the employee onboarding, the benefits of the employee are also being discussed to ensure that the new hired employee will know what are his benefits and perks. Employee Onboarding may take at least 3 days depending on the program schedule that the human resource officer had made.

6 0

3 years ago

Un trabajador que gana $ 265 diarios, trabaja el domingo que no es su día de descanso, $ 21 de despensa, trasporte $ 25 pagado e

valentinak56 [21]

Responder:

Explicación:

Esta pregunta no solicitó qué responder, sin embargo, podemos conformarnos con la información que se nos proporcionó.

paso uno:

datos dados

Ganancias por día = $ 265

nos dicen que también trabaja los domingos

esto significa que trabaja los 7 días de la semana y los 365 días del año.

El 12% de las ganancias es para ahorros = 12/100 * 265

0,12 * 265 = $ 31,8

también se nos dice que lleva 3 años en servicio

por lo tanto, el número total de días es = 365 * 3 = 1095 días

La ganancia total por día durante tres años = 265 * 1095 = $ 290,175

Segundo paso:

Costo total de comestibles durante 3 años = 21 * 1095 = $ 22,995

Costo total de transporte durante 3 años = 25 * 1095 = $ 27,375

Ahorro total durante 3 años = 31,8 * 1095 = $ 34,821

Costo total de dos comidas durante 3 años = 26 * 1095 = $ 28,470

Paso tres:

Por lo tanto, la deducción total de sus ganancias durante 3 años es

= 22,995 + 27,375 + 34,821 + 28,470 = $ 113661

Y el saldo disponible será 290,175-113661 = $ 176514

5 0

3 years ago

The winner of the first annual Tom Morris Golf Invitational won $105 in the competition which was held in 1899. In 2015, the win

antoniya [11.8K]

$25968406.94.

a. Computation of Effective Interest Rate

Future Value = Present Value * (1 + r)^n

Future Value = $1460000

Present Value = $105

n = Number of Years = 116 Years

Future Value = Present Value * (1 + r)^n

1460000 = 105 * (1 + r)^116

13904.76 = (1 + r)^116

1.0857 = 1 + r

Effective Interest Rate = 8.57%

b.Future Value in the year 2050

Future Value = Present Value * (1 + r)^n

Present Value = $1460000

n = Number of Years = 35 Years

Future Value = Present Value * (1 + r)^n

Future Value = 1460000 * (1 + 0.0857)^35

Future Value = 1460000 * 17.7866

Future Value in the year 2050= $25968406.94.

Learn more about interest rates at

brainly.com/question/25793394

#SPJ2

5 0

2 years ago

You observe the following term structure: Effective Annual YTM 1-year zero-coupon bond 5.2 % 2-year zero-coupon bond 5.3 3-year

Lisa [10]

Answer:

Explanation:

a. If you believe that the term structure next year will be the same as today’s, calculate the return on (i) the 1-year zero and (ii) the 4-year zero.

b. Which bond provides a greater expected 1-year return? O 1-year zero-coupon bond O 4-year zero-coupon bond

The return on one year bond is = 5.2%

The price of 4 year bond today

$=\frac{ 1000}{ (1.055)^4}$

Price of 4 year bond today = 807.22

If yield curves is unchanged, the bond will have 3-year maturity and price will be

$=\frac{ 1000}{(1.054)^3}$

If yield curves is unchanged, the bond will have 3-year maturity and price will be = 854.04

Return

$=\frac{ (854.04 - 807.22)}{807.22}$

Return = 5.8%

The longer term bond has given the higher return in this case at it's YTM fell during the holding period(4 -year)

8 0

3 years ago