Answer:
d. Harmon only needs to show the bank his record of income from
his old job, not his new business.
Answer:
$28,000 and $12,000, respectively
Explanation:
Marginal cost = incremental cost from Plan C to Plan D
= total cost (plan D) - total cost (plan C)
= 72,000 - 44,000 = $28,000
Marginal benefit = incremental benefit from Plan C to Plan D
= total benefit (plan D) - total benefit (plan C)
= 64,000 - 52,000 = $12,000
Therefore marginal cost and benefits for Plan D = $28,000 and $12,000, respectively
Answer: 6.6%
Explanation:
The Pure Expectations Theory believes that the future long term rate is a reflection of future short term rates.
In terms of a 5 Treasury Security then, the rate of return to be expected is the risk free rate adjusted for inflation.
The Treasury Security has no risk but for inflation risk hence this is all that should be catered for.
Rate of Return on 5 year Treasury Security = Real Risk Free Rate + Inflation Rate
= 2.5% + 4.1%
= 6.6%
Answer: A) Remainderman
Explanation:
A Remainderman may sound like something from a horror movie but it is a property law term that refers to a person that is billed to take over or inherit an estate after the LIFE ESTATE of the previous owner is terminated.
Life Estate is an agreement where a person owns a property or asset for the duration of their life but as soon as they pass on, the asset or property reverts back to the original owner of a THIRD party.
The Remainderman is the person who the property reverts to.
In the above scenario therefore, the woman is in possession of a Life Estate but the Stepson is the Remainderman.
Answer: C. There has been a decline in the foreign exchange value of the nation’s currency.
Explanation:
The Demand curve of a country can be written as an equation which is
C+I+G+(X-M)
C is consumption, I is investment, G is government expenditure, X is exports, M is imports and X-M is net exports.
When ever consumption, investment, government expenditure or net exports increase the demand curve shifts to the right and whenever they decrease the demand curve shifts to the left.
In this case when the value of the currency foreign exchange declines, the country reduce its imports because they are now more expensive as your currency's value is declining and the exports will increase because they will now be cheaper to foreign buyers as their currency is now gotten stronger. This decrease in imports and increase in exports will increase net exports and an increase in net exports will shift the demand curve to the right