A derivative<span> is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, index, or security. ... Similarly, a </span>stock<span>option is a </span>derivative<span> because its value is "derived" from that of the underlying</span>stock<span>.</span>
The demand curve for bonds shifts to the left and the interest rate rises.
<h3>Influence of the demand curve</h3>
When bonds are not frequently traded, and the market becomes less liquid, the demand for the bonds falls.
As a result, with a fall in demand, the curve will move towards the left. To overcome the less liquid position, bond suppliers will raise the interest rate to attract investors and capital in the market
To overcome the less liquid position, bond suppliers will raise the interest rate to attract investors and capital in the market
Therefore, the correct answers are left and rise.
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Answer:
it can still gain from international trade in that commodity, by getting it at a lower opportunity cost than if it produced it domestically.
Explanation:
A country has comparative disadvantage in production if it produces at a higher opportunity cost when compared to other countries.
The country with a comparative disadvantage can gain from trade by trading the good with a country that has comparative advantage in the production of that good. i.e. the country produces at a lower opportunity cost
For example, country A produces 10kg of beans and 5kg of rice. Country B produces 5kg of beans and 10kg of rice.
for country A,
opportunity cost of producing beans = 5/10 = 0.5
opportunity cost of producing rice = 10/5 = 2
for country B,
opportunity cost of producing rice = 5/10 = 0.5
opportunity cost of producing beans = 10/5 = 2
Country B has a comparative disadvantage in the production of beans and country A has a comparative disadvantage in the production of rice
Country B should buy beans from A and A should buy rice from B
The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.
<h3 /><h3>How does expansionary monetary policy affect trade?</h3>
- Increases in the stock market are a result of expansionary economic policy since it boosts economic activity. Fiscal and monetary channels can be used by policymakers to carry out an expansionary strategy. It is typically used when inflationary pressures are low and the economy is headed towards a recession.
- When a central bank employs an expansionary monetary policy, it helps to boost the economy. This boosts the availability of money, brings down interest rates, and raises demand. It promotes economic expansion. It reduces the currency's worth, which decreases the exchange rate.
- The following are the general effects of monetary policy on economic activity, as measured by changes in (real) interest rates. Financial institutions can obtain funds at cheap interest rates when interest rates fall. They are able to lower their lending rates for loans to businesses and households as a result.
- Expansive monetary policy can be quite successful in the early stages of a financial and economic collapse, reducing uncertainty spikes and tail risks and preventing negative feedback loops (e.g. Mishkin 2009).
What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?
The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.
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<span>Sales during the last four periods are in the order from older to recent as 100, 200, 130, and 300.
Moving average is a successive average calculated from the successive segments.
So the third month moving average MA3 = (200 + 130 + 300) / 3 = 630 / 3 = 210
So the answer is 210.</span>
