Answer:
b. could be low because people might adjust their expectations quickly if they found anti-inflation policy credible
Explanation:
In the given situation, it is mentioned that the rational expectations proponets said that the sacrified ratio would be lesser as the people wants to adjust their expectations in a fastest way in the case when they found that the anti-inflation policy is credible
Therefore as per the given situation, the option b is correct
Answer:
in the primary market and usually with the assistance of an investment banker.
Explanation:
Primary markets are ones where newly issues securities are sold. When companies seek to gain capital from investors, they issue securities that can be bought buy investors in exchange for capital.
Investment bankers are usually involved in the sale of securities in the primary markets. They obtain the securities on behalf of the investors.
Primary markets are also called new issues market
Answer:
A. Increase investment in long-term bonds
Explanation:
According to the Expectations hypothesis which is based on the principle that long-term rate is determined purely by current and future expected short-term rates, such that he expected final value from the accumulation of progression of short-term bonds approximates the final value from investing in long-term bonds.
Hence, given that when the interest rates fall, the prices of the bonds on the market already will rise, then it can be concluded that If the fund manager thinks that interest rates are going to fall, she should Increase investment in long-term bonds
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Answer:
Maintenance total cost: 325,000
Cost Allocated to Packagin from Maintenance 162,500
Explanation:
![\left[\begin{array}{ccccc}&Maintenance&Cafeteria&Assembly&Packaging\\Employees&4&&8&8\\Direct \: Cost&270,000&275,000&&\\Allocate C&55,000&-275,000&&\\Subtotal&325,000&&110,000&110,000\\Allocate M&-325,0004&-15,760&-162,500&-162,500\\Total&&&272,500&272,500\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%26Maintenance%26Cafeteria%26Assembly%26Packaging%5C%5CEmployees%264%26%268%268%5C%5CDirect%20%5C%3A%20Cost%26270%2C000%26275%2C000%26%26%5C%5CAllocate%20C%2655%2C000%26-275%2C000%26%26%5C%5CSubtotal%26325%2C000%26%26110%2C000%26110%2C000%5C%5CAllocate%20M%26-325%2C0004%26-15%2C760%26-162%2C500%26-162%2C500%5C%5CTotal%26%26%26272%2C500%26272%2C500%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We will divide the cafeteria cost by the sum of employees of the department and maintenance.
4+8+8 = 20
275,000/20 = 13,750
Then we multiply this by each department employees and add them to their cost.
Maintenance total cost after adding cafeteria is 325,000
Then we do the same, we divide this amount for the emplyees of the processsing department:
8 + 8 = 16
325,000/16 =20,325.5
Then we multiply by 8 employees: 162,500
Maintenance total cost: 325,000
Cost Allocated to Packagin from Maintenance: 162,500