Answer: must offer higher
Explanation:
The financial world of investment is inter-correlated and products can sometimes be substitutes for one another. What this means is that if one financial product is not offering enough return on investment or is risky or for any other reason shakes their confidence in it, then investors tend to run to financial products that are perceived as better.
This is why when interest rates are stable and stocks are volatile, stock markets tend to lose value and bond markets sometimes gain value as investors leave the stock market and come to the bond market.
In the scenario described, the interest rate in the money market is 5%. If interest bearing financial assets are only at 2%, investors will leave/ not invest in those interest bearing bonds because the rate is lower. The sellers of such assets will therefore have to make them more attractive by increasing the the interest rates to find willing buyers.
Answer:
Nakawé, LLC produces and sells greeting cards in a competitive market. The total cost of producing 1000
greeting cards is $4000. The price of a greeting card is $4.
What is this firm's economic profit (or loss)?
Explanation:
or loss
<span>This is called a brand. This helps a company distinguish itself from other companies and in some circumstances, a brand might make the product more appealing to the customer by adding a certain personality to it. This helps the consumer relate to the product more.</span>
The media mix is the combination of media used and the frequency of advertising in each medium.
Answer:
$961.54
Explanation:
To calculate the real price of the TV you would have to determine the present value of the TV's price. The future price of the TV is $1,000 and your discount rate is 4% annual (the same as your bank), so the present value of the TV =
present value = future value / (1 + rate) = $1,000 / 1.04 = $961.54
