The correct answer is B.
A price floor is a policy established by economic authorities that consists on setting a threshold so that the price of a certain product or service cannot decrease under that. It distorts the market outcome when it is larger than the equilibrium price, because the amount supplied at the price floor level would the larger than the amount demanded by consumers and, hence, there is an excess of supply or surplus. Therefore, <u>the market does not clear because the rationing function of prices has been externally influenced. </u>
A price ceiling is a similar policy established by economic authorities. A threshold is set so that the price of a certain product or service cannot increase over it. It distorts the market outcome when it is smaller than the equilibrium price, because the amount supplied at the price ceiling level would the smaller than the amount demanded by consumers and, hence, there is an excess of demand of shortage. Again, <u>the market does not clear because the rationing function of prices has been externally distorted. </u>
<em>A market clears when the equilibrium is reached and the amount supplied equals the amount demanded, so that the desires of both producers and consumers meet. </em>
Answer:
The stock price will be $25.72 in ten years from now.
Explanation:
The stock price in ten years from now will be equal to the present value of perpetual growth dividend stream from the stock; with the first dividend in the stream is the eleventh year dividend which is calculated as: Dividend in Year 0 x (1+growth rate)^11 = 1.42 x 1.04^11 = $2.186.
So, the stock price will be calculated as:
Stock price = 2.186/ ( 12.5% - 4%) = $25.72.
So, the answer is: The stock price will be $25.72 in ten years from now.
Answer: The correct options are;
Option C
Option E :
Explanation:
The recent crisis led to more debt to GDP ratio jumped from 69% in 2008 to 79% in 2009. This level is higher than the maximum in the Great Depression and the increase in percentage points over two years is the same as that over six years during the great depression
Also,
The banking system was not hit hard during the great depression because the central banks of different countries were less coordinated, had different
objectives and policy instruments and some countries still had obligations and/or debts from
World War I. All countries had separate currencies, and lenders of last resort did not exist to
the extent they do today.
According to a discussion paper titled "The Great Recession versus the Great Depression: Stylized Facts on Siblings That Were Given
Different Foster Parents".
Answer:
you want us to write a 5-7 page paper for you? that's on you. it's for questions, not whole papers
The main type of Insurance company includes:
- General insurance company
- Life insurance company
- Reinsurance company
<h3>What is the role of
Insurance company?</h3>
These are financial institution that provide insurance covers to intending policyholders.
Therefore, the main type of Insurance company includes general insurance company, Life insurance company and Reinsurance company.
Read more about Insurance company
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