Explanation:
The aggregate demand curve is downward sloping. It implies price levels are falling and the quantity of output will increase as well as the domestic income. The theories that can explain why the aggregate demand curve is downward sloping: the Pigou's wealth effect, the Keynes's interest-rate effect, and the and Mundell-Fleming's exchange-rate effect.
B: Press the clutch then take out the gear
Answer: 1.9%
Explanation:
First derive the Market return as this is needed in the Capital Asset Pricing Model by using the same model:
Required return = Risk free rate + Beta * ( market return - Risk free rate)
Using stock Y:
12.4% = Risk free rate + 1 * (market return - Risk free rate)
12.4% = Rf + market return - Rf
Market return = 12.4%
Use this to calculate the Risk free rate:
Stock Z:
8.2% = Rf + 0.6 * (12.4% - Rf)
8.2% = Rf + 7.44% - 0.6Rf
Rf - 0.6Rf = 8.2% - 7.44%
0.4Rf = 0.76%
Rf = 0.76% / 0.4
= 1.9%
Answer:
E. strengthen a claim by indicating that it applies even to exceptional cases
Explanation:
Answer E
Correct. In this sentence, the author makes the claim that melancholy can make one’s imagination “torpid” (sluggish), and that lack of appropriate occasions can prevent the mind from coming up with “sallies and excursions” (clever remarks). He strengthens the claim by extending it to the most exceptional cases when he indicates that it applies to any mind “however volatile,” that is, even to those that are normally the liveliest and most wide-ranging.
