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3 years ago

In order to achieve price stability, inflation must be zero. a. True b. False

1 answer:

3 0

False, inflation does not need to be zero to achieve price stability. Although the ideal rate of inflation is zero, that's likely not going to happen. Most record a low inflation rate of of 1% give or take, but not zero. The key factor in price stability is to have a low and consistent inflation rate over time.

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Palmer Products has outstanding bonds with an annual 8 percent coupon. The bonds have a par value of $1,000 and a price of $865.

Andre45 [30]

The yield to maturity on the bonds is 10.0868%

<u>Explanation</u>:

Given,

Annual coupon rate = 8% = 0.08

Par value = $ 1000

Price = $ 865

N = 11 $\times$ 1 .

PV = $ 865

PMT = ( Par Value $\times$ The coupon rate) / F

= ( 1000 $\times$ 0.08 ) / 1

= 80.

FV = 1000.

Financial calculator solution

the yield to maturity = I = 0.1008668

= 10.0868% .

6 0

3 years ago

Use information from the Washington Post article "Why We've Been Hugely Underestimating the Overfishing of the Oceans" to determ

antiseptic1488 [7]

Answer:

"Why We've Been Hugely Underestimating the Overfishing of the Oceans"

Determining whether each statement is true or false:

a. False

b. True

c. False

d. True

Explanation:

The article "Why We've Been Hugely Underestimating the Overfishing of the Oceans," was published by the Washington Post on January 19, 2016. It was written by Chelsea Harvey. It tried to show how the world fish stock had been declining due to overfishing. This is why it provided a report contrary to the FAO report.

While the FAO report noted that the peak of worldwide catches was at 86 million tons in 1996, the contrary and independent report, using "catch reconstruction" showed that the peak was at 130 million tons in 1996. The reconstructed research also showed that worldwide fish catches had suffered declines ever since the 1996 peak, thereby threatening "world food security and marine ecosystems". The contrary report also suggested that all stakeholders must collaborate so that fish stocks can rebuild naturally.

3 0

3 years ago

__________ unemployment refers to persons who purposefully quit their jobs and have not yet found a new job.

Westkost [7]

It would be frictional unemployment

6 0

3 years ago

Identify whether the actions or scenarios would likely increase or decrease the natural rate of unemployment. You are currently

Oksanka [162]

Answer:

increases natural rate of unemployment

extra financial benefits for the unemployed

a large number of young people entering the labor force

an increase in union membership

Decreases natural rate of unemployment

reducing workers' collective bargaining rights

Explanation:

natural rate of unemployment is unemployment that exists when there is only structural and frictional unemployment in an economy

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.

Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

If the unemployed are given extra benefits, there would be less incentive to find a job, thus unemployment would increase

An increase in union membership increases bargaining power of employees. this can lead to increase in wages. increase in wages reduces demand for labour and this increases unemployment. reducing collective bargaining right has the opposite effect on unemployment

a large number of people entering the labour force increases frictional unemployment

4 0

3 years ago

The managers at Movo Automobile Inc. want to diversify their business by acquiring a consumer electronics company. This acquisit

quester [9]

Answer:

C.principal-agent problems.

Explanation:

The acquisition of Movo Automobile is a typical example of AGENCY COST. Under the Agency cost theory, managers are agents of shareholders who represents principal in the principal - agent problem.

Agency cost is a situation where agents become selfish and pursue strategies and policies that will promote the self interest of agents and cause dissatisfaction to principals.

4 0

3 years ago