Investing is important to make the cash flow of the economy.
Explanation:
The most vital component of a growing economy is the cash flow.
If the cash is not flowing from one business and one hand to another the economy is bogged down and then a slowdown occurs all across with a ripple effect.
Investments constantly bring capital in for the companies that are then able to spend that investment and to bring more and more money into the cash flow of the economy thus strengthening the circulation and creating growth.
This growth is what ultimately results in the growth of the whole economy.
Answer:
b. the market for wallpaper is in equilibrium.
Explanation:
Efficient allocation of resources means that the cost to produce the last unit of wallpaper and the benefit from that unit equals.
It must be the case that the cost of obtaining the product (which is equal to the benefit to the buyers) is the same as the cost of producing the product. That is the price.
The quantity where demand and supply meets in the equilibrium quantity (supply curve intersect demand curve)
That's the market equilibrium, where the price and quantity that buyers are willing to buy and suppliers are willing to sell is the same.
Answer:
b) fall to 8 percent.
Explanation:
First, irrespective of the duration of the bond, if the price is equal to the bond's face value, it means that the coupon rate is equal to the yield to maturity (YTM).
Initial YTM = 10%
Since this is a perpetually coupon paying bond, you use PV of perpetuity to find the rate;
PV = Coupon PMT / rate
Given PV as $1,250, new annual rate would be;
1,250 = 100/rate
solve for rate by cross multiplying;
1,250rate = 100
divide both sides by 1,250
rate = 100/1,250
rate = 0.08 or 8%
Therefore, the
interest rate would fall to 8 percent.
When you get hired for a well-paying job, you will most likely view older used cars as<u> inferior goods.</u>
<h3><u /></h3><h3><u>What are inferior goods?</u></h3>
As consumer income rises, customer demand declines for a class of inferior goods. Low-cost alternatives to "normal products," or necessities like food and household supplies, are frequently found in inferior goods. For instance, when someone's wage is cut, they might buy cheaper, poorer things than they would otherwise. When their earnings increases again, they're more likely to buy regular things rather than cheap ones.
The word "inferior" refers to the product's price and perceived worth rather than its quality. The quality may occasionally be inferior to an equivalent standard good, but it may also occasionally be the same. In reality, there are occasions when the only distinctions between regular goods and equal substandard goods are the packaging and price of the goods.
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