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3 years ago

5. A nation's frictional unemployment rate is 1%. Its cyclical rate of unemployment is 9.7%, and its structural

Business

1 answer:

umka2103 [35]3 years ago

7 0

Answer:

14.7%

Explanation:

Frictional unemployment occurs when a person willingly quits his/her job in order to seek a better job.

Structural unemployment occurs when a person's skills do not fit the skills required by the firms that are hiring.

Cyclical unemployment results from a decrease in economic activity.

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Which theory would most likely explain why a commercial bank, which usually focuses on short-term securities, would switch to lo

den301095 [7]

Answer:

preferred habitat

Explanation:

According to the preferred habitat theory, if the expected returns from investment of a particular investment maturity is large enough, investors would shift from their preferred maturities.

In this question, there is a shift from the preferred maturity (short-term securities) to a long-term securities when interest rate changes

The pure expectations theory assumes that bonds of any maturity are perfect substitutes for each other. For example, if an investor buys a 10 year bond and holds it for 1 year, the return is the same as buying a 1 year bond. The theory also assumes that risk premium does not exist and a security only earns its risk free rate

Liquidity premium theory states that risk premium increases with the maturity of a bond. The theory predicts that the yield curve is upward sloping due to liquidity premium

According to the segmented market theory, each bond maturity segment can be thought of as a segment market in which yield are a function of the demand and supply for funds in that maturity.

5 0

3 years ago

Assume that bananas cost $0.50 in 2002 and $1 in 2007, whereas pears cost $1 in 2002 and $1.50 in 2007. Suppose that 4 bananas w

daser333 [38]

Answer:

Real GDP [2002] = 5, Real GDP [2007] = 6.5, Nominal GDP [2002] = 5, Nominal GDP [2007] = 11

GDP Deflator = 169, Implicit Inflation rate = 69%

Explanation:

Real GDP is the value of goods & services produced, at base year prices. Current year = 2007, Base year = 2002 here.

2002 : Qb = 4 , Qp = 3 , Pb = 0.5 , Pp = 1

2007 : Qb = 5 , Qp = 4 , Pb = 1 , Pp = 1.5

Real GDP [2002] = Pb(02) Qb(02) + Pp(02) Qp(02)

= (0.5)4 + 1(3) = 2 + 3 = 5

Real GDP [2007] = Pb(02) Qb(07) + Qp(07) Pp(02)

= 0.5 (5) + 1 (4) = 2.5 + 4 = 6.5

Nominal GDP [2002] = Pb(02) Qb(02) + Pp(02) Qp(02)

= (0.5)4 + 1(3) = 2 + 3 = 5

Nominal GDP [2007] = Pb(07) Qb(07) + Pp(07) Qp(07)

= 1 (5) + 1.5 (4) = 5 + 6 = 11

GDP Deflator [currrent year 07] = Nominal GDP (07) / Real GDP (07) x 100

(11 / 6.5) x 100 ~ 169

So, implicit inflation rate is 69%

6 0

3 years ago

DAR Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under P

Eddi Din [679]

Answer:

a) Share price of company is $28.20.

b) So value of unlevered firm is $4.512 million.

Explanation:

Share price = Value of debt / (160,000 - 110,000)

= $1,410,000 / 50,000

= $28.20

Share price of company is $28.20.

VAlue of all equity firm = Number of share outstanding × Price per share

= 160,000 × $28.20

= $4.512 million

Value of levered firm is $4.512 million.

Since tax rate is zero, so value of levered firm equal to value of unlevered firm.

So value of unlevered firm is $4.512 million.

6 0

3 years ago

A firm uses machine hours to allocate overhead cost. During the period, budgeted variable overhead is Rs. 10000 and budgeted

iVinArrow [24]

Answer:

Explanation:

If you do hours X units and then put it on the end of the Variable you get C. Hope this helped #brainiest

4 0

3 years ago

EB1.

GaryK [48]

Answer:

1,350 units; 918 units

Explanation:

Ending inventory:

= Beginning inventory + Units started - Units completed and transferred

= 750 + 9,500 - 8,900

= 1,350

Equivalent units of ending work in process for Materials:

= 100% complete × Ending inventory

= 100% × 1,350

= 1,350 units

Equivalent units of ending work in process for Conversion:

= 68% complete × Ending inventory

= 68% × 1,350

= 918 units

3 0

4 years ago