A. Mood, interest.
Keeping your MOOD and INTEREST in mind will dictate what you say and how you say it.
Answer:
the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.
Explanation:
"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." This policy directive follow the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.
<u>The reason is that in the short-run, deficits offer economic solutions by being an antidote to recessions, hence they could be a strategy of recession management in the short run</u>
<u>However in the long-run, deficits are not advisable as they could lead to debts because the major way to manage such deficits is by external borrowings. </u>
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I think that the answer would be D
<u>Solution and Explanation:</u>
1. the Yield to maturity
FV = 1,000
PMT = FV multiply with Coupon rate
, PMT = 1,000 multiply with 0.1 = 100
N = 5
, PV = -1,197.93
CPT I/Y
I/Y = 5.380166647
Therefore, the Yield to maturity = 5.380166647%
Where: FV – fair value, PV – Present value
2. Current yield = Coupon payment divided by Price
Current yield = 100 divided by 1,197.93
By solving we get,
Current yield = 0.08347733173
Therefore, the Current yield = 8.347733173%
Answer: a) It captures the full price that customers might be willing to pay for a product.
Explanation:
The cost-plus pricing method involves using the total cost to come up with a selling price by simply adding a markup that the company would like as profit to the total cost of the product per unit and then selling it at that price.
It is easy to justify to stakeholders, simplifies pricing processes and is quite easy to measure or estimate.
It however does not capture how much a customer may be willing to pay for for a good as it is based on the company's expenses and preferred profit.
