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artcher [175]
2 years ago
15

Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidi

ze the home-construction industry by giving the home-construction companies $10,000 for every house that they build. As a result of this,
Business
1 answer:
Llana [10]2 years ago
6 0

Answer: the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price.

Explanation:

Since the government decides to subsidize the home-construction industry by giving the home-construction companies $10,000 for every house that they build, then the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price.

Builders will be willing to produce more houses because they'll intend to get the $10000 given by the government and this will be a source of motivation. Therefore, the supply curve will shift to the right.

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When describing the opportunity cost of two producers, economists use the term natural advantage. trading advantage. comparative
tia_tia [17]
Im confused on what your asking 
4 0
3 years ago
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What is the relationship between quality and competitiveness?
Reika [66]

The relationship between them is that to be competitive you need to produce the best Quality

<h3>Quality and competitiveness</h3>

Question Parameters:

  • Quality
  • competitiveness

Generally ,Quality speaks to the originality and all round measure of how good a thing is i comparison to another

While competitiveness is a will or desire to be the best in a group of field

Therefore, the relationship between them is that to be competitive you need to produce Quality

For more information on Measure visit

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3 0
2 years ago
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Suppose that you inherited some 2.25% US Treasury bonds from your grandfather that mature in 2027. Although they were originally
zubka84 [21]

Answer:

we will sell bond and invest for better investments

Explanation:

we know here that Yield on Treasury Bond of Grandfather =  2.25%

so we believe interest rate will be continue for rise

Bond are valued = $950

so we  the Bond and invest the proceed for better interest rate

and

we know  Grandfather bond price will be decrease if rate increase as that we predict

because we know  Bonds prices and the interest rate is inversely proportional to the each other

so as that  if interest rate increases Bonds prices will be decrease

and the Vice Versa

so that we will sell bond and invest for better investments

because here if once the interest rate increase then he will selling point regarding for Bond and price will be fall

8 0
3 years ago
even though most corporate bonds in the united states make coupon payments semiannually bonds issued elsewhere often have annual
GenaCL600 [577]

Answer:

€1,152.66

Explanation:

In order to determine the current price of the bond we need to apply the present value formula i.e to be shown in the attachment below:

Given that,  

Future value = $1,000

Rate of interest = 4.7%

NPER = 23 years

PMT = $1,000 × 5.8% = $58

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

After applying the above formula, the current price of the bond is €1,152.66

3 0
3 years ago
The nominal rate on Sarah’s loan is 7. 250%. If the interest is compounded monthly, what rate of interest is Sarah actually pa
Alexeev081 [22]

In this example, Sarah is actually paying interest, which is compounded monthly at the rate of 7.496%. So, the correct option that matches the above statement is B.

Compound interest can be easily calculated by the way of putting the values given in the formula for compound interest, which is compounded on a monthly basis.

<h3>Calculation of Compound Interest</h3>

  • Compound interest is best defined with the terms as interest given on accrued interest or the accumulated interest in addition to the interest on the principal amount.

  • In the example, the amount of loan is not given. Hence, we are assuming that Sarah took a loan of $10000. It is also not provided that the tenure of the loan taken by Sarah, so we are assuming the time period as one year.

  • The formula to calculate Compound interest is as given below,

  • \rm Compound\ Interest= Principal\ Amount\ x\ (1+ \dfrac {r}{n})^n^t

  • In the formula above <em>r </em>is denoted as rate of interest,<em> </em><em>n </em>is the number of times such interest is paid throughout the tenure and<em> t </em>is the time. So putting the assumed values in the formula, we get,

  • \rm {Compound\ Interest} = \$10000\ x\ (1+ \dfrac {0.0725}{12})^1^2\ x\ 1\\\\\\\\\rm {Compound\ Interest} = \$10749.58\\\\\\Actual\ Interest\ Earned= $10749.58-10000\\&#10;&#10;&#10;

  • So the actual interest actually paid will be $749.58 for the period of 1 year from such calculation.

  • If we calculate such interest paid, the effective rate of interest paid by Sarah will account to 7.496% (rounded off to three decimal places).

Hence, we can say that Sarah will be actually paying the interest at the rate of 7.496% and that the correct option is B.

To know more about compound interest, click the link below.

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8 0
2 years ago
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