The right answer is community settings :D
Family members can give advice but if they are not a business partner, then they don't have much of a say in the business.
Answer:
6%
Explanation:
Current interest rate on one year bond = 5%
Forward interest rate on one year bond = 7%
To Calculate the interest rate on two year bond we use this:
Interest rate = [Current interest rate on one year bond + Forward interest rate on one year bond]/2
Interest rate = [5 + 7]/2 = 12/2 = 6%
Therefore,
The interest rate on two-year bond is equal to 6%.
It is because Thaler places a higher value on bottles of wine whe he owns them than when he does not own them. This is the reason as to why Thaler makes the statement " i am a good enough economist to know there's a bit of an inconsistency there'? Thaler's behavior is also inconsistence since he was ignoring the nonmonetary opportunity cost of the wine.
