Answer:
$400
Explanation:
So we know that is 15 years you will have $6000
so $6000 divided by 15 years.This will bring you how much money you have to deposit each year..
6000/15
400
so..
you will have to deposit $400 every year in 15 years.
Answer:
Solution for question 1
It is not necessary that action that lower the short term interest rate will lower the long term interest rate also.
So given statement is false.
Solution for question 2
Because of subprime crisis in 2008 most of the Market collapsed and there is a huge problem of liquidity. Yield on US treasury security was decreased and so the price of treasury securities was increased.
Hence, given statement is true.
Solution for question 3
Countries with strong balance sheet mean countries are developed and so interest rate in these countries is lowered.
Hence, given statement is true.
Solution for question 4
One of the major function of Federal Reserve is to control economic activities. In the Era of globalization all countries economy is depend on other economy. So interest rate in USA highly dependent on other countries.
Hence, given statement is true.
The expansionary fiscal policy will shift the aggregate demand curve from <u>AD0</u> to <u>AD1</u> and equilibrium will move from point <u>a</u> to <u>b</u> if the economy starts below full employment.
<h3>What is the below
full employment?</h3>
Its means when an the short-run real gross domestic product is lower than that same long-run potential real gross domestic product.
Hence, the economic situation will elicit a policy of expansionary fiscal which will affect the aggregate demand graph.
Therefore, the aggregate demand curve from <u>AD0</u> to <u>AD1</u> and equilibrium will move from point <u>a</u> to <u>b</u> if the economy starts below full employment.
Read more about aggregate demand
<em>brainly.com/question/1490249</em>
C.
Allocative efficiency in simple terms basically means there is no wastage, therefore if producers produce at price equals marginal coat, they are producing at the point where consumers are willing to pay that final price. Refer to the poorly drawn diagram for reference.
Answer:
r = 0.09672 or 9.672%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the dividend paid recently
D0 * (1+g) is dividend expected for the next period /year
g is the growth rate
r is the required rate of return or cost of equity
55 = 3 * (1+0.04) / (r - 0.04)
55 * (r - 0.04) = 3.12
55r - 2.2 = 3.12
55r = 3.12 + 2.2
r = 5.32 / 55
r = 0.09672 or 9.672%
