Answer:
C. A situation where no economic agent would benefit by changing his or her behavior
Explanation:
An economic equilibrium is when the agents are optimizing their decisions and opposing market forces are equal. This point allows the economic agents to maximize their utility and any change from this point will cause all agents to move away from potential maximum benefits.
In a natural equilibrium there is usually no government intervention so option A is false. Option B gives only one agent potential benefits and as such there is no equilibrium. Option D is conditional and may or may not happen as when the agents find missing information they would optimize again and move to an equilibrium.
Hope that helps.
What Mark is displaying is selective distortion. This term is used when individuals continue to interpret information in accordance to the belief that they are supporting.
In the example, even though the news have reported that his favorite shoe brand uses child labor to manufacture the brand’s shoes, Mark chooses to believe that the media is lying instead of accepting the report as true.
Answer:
5.75%
Explanation:
First, find the coupon payment amount . Using a financial calculator, key in the following inputs for this the bond valuation.
<em>Note: Make adjustment on the rate and time since the coupon payments are made semi-annually i.e 2 times a year</em>.
Maturity of the bond ; N = 14.5*2 = 29
Semi-annual rate ; I/Y = (5.3%/2) = 2.65%
Face value ; FV = 1000
Price of the bond or PV = -1045
then compute semiannual coupon payment ; CPT PMT = $28.743
Annual coupon rate is therefore = $28.743*2 = $57.486
Coupon rate = coupon payment / face value
Coupon rate = $57.486 / 1000
= 0.05749 or 5.75%
Answer: increase the rate of growth of the money supply to restore spending growth.
Explanation:an increase in money supply growth. If the Federal Reserve offsets a negative shock to aggregate demand with increased money growth: both inflation and real GDP growth will rise.
