((51÷2)×21)÷3=178.5 this is answer
Answer:
economy will never deviate from the natural rate of unemployment for any anticipated policy
Explanation:
For any anticipated policy the economy will never deviate from the natural rate of unemployment. According to the theory of rational expectations, people will use all resources available to build an opinion on the economic event, and respond accordingly.
Therefore response is 3 (people should correctly predict the policy outcome and adapt accordingly).
Answer:
The answer is option (c) Short 34 contracts
Explanation:
Solution:
Given that
The information about the portfolio is as stated below:
The value of the portfolio = $8.5 million
The beta = 1.3
The future contract of S&P price = $1310
The size of contract = 250
Now,
To hedge the risk completely, the desired beta is =0
Thus,
The number of contracts is calculated as follows:
The Number of contract = (desired beta - portfolio beta)*portfolio value/(future price*contract size)
So,
The number of contracts = (0 - 1.3)*8500000/(1310*250) = -34
Then,
The negative sign means it is going short.
Hence,
A total of 340 contracts must be short.
Answer:
The statement is: True.
Explanation:
In making business relationships, an agent acts as a third party that is legally authorized to establish businesses for one of the entities involved. The entity that uses the agent as an intermediary is called the principal. The agent must follow the principal's instructions avoiding to be biased by self-interest.
Answer:
MPC = 0.4
Explanation:
Multiplier shows change in income due to change (increase) in investment, or change (decrease) in tax. It is calculated by Marginal Propensity to Consume, as follows -
Multiplier ie k = Δ Income / Δ (govt investment or tax) = 1 / (1 - MPC)
Given : ΔG ie tax fall = 60 ; Targeted income rise = Full employment - actual output = 2000 - 1900 = 100
k = ΔY / ΔG = 100 / 60 = 1.67
k = 1 / (1 - MPC) → 1 - MPC = 1 / k → 1 - MPC = 1 / 1.67 → 1 - MPC = 0.6
MPC = 1 - 0.6 → MPC = 0.4
