Answer: d. Decision-making lag
Explanation:
When policy makers have identified that there is a problem that needs fixing but cannot seem to agree on the way forward, this is known as a <em>Decision - Making Lag or simply the Decision Lag.</em> It is one of the 3 specific inside Policy Lags and can be devastating due to the uncertainty of time it might take.
For instance, the economists suggesting dropping the federal funds rate by 0.25% might have the backing of one half of the Fed and the other Economists, the other half. Arguments could therefore go on for weeks before a decision is made.
Answer:
1. Decrease, increase
2. Supply curve shifts to the right
3. NCO will rise
4. Real exchange rate falls and net exports rises
Explanation:
Fiscal deficit occurs when government spending's exceed government revenue. When the government lowers its export subsidies while keeping other spending's and taxes unchanged, it leads to a fall in the fiscal deficit.
1. However, the reduction in expenditure on export subsidies <em>decreases</em> the fiscal deficit, thereby <em>increases </em>public savings.
2. As public savings increase it leads to an increase in funds available to be loaned out. So the <em>supply curve</em> for loanable funds will <em>shift to the right</em> from S1 to S2. This will lead to a <em>fall</em> in the interest rate.
3. As we know that net capital outflow is inversely related to the interest rate. A fall in the interest rate above will lead to a <em>rise</em> in net capital outflow.
4. When net capital outflow increases, people move funds out of the country. Thus, supply of dollars will increase. While demand for dollars has remained unchanged, it leads to a<em> fall</em> in the real exchange rate. As exchange rate falls, the equilibrium level of net exports will <em>rise</em>.
The dept of corrections is responsible for the rehabilitation and incarceration of people who committed criminal acts... to sum it all up; the Prison system.
Answer:
the risk free rate of return is 4.8%
Explanation:
The computation of the risk free rate of return is shown below:
As we know that
Expected rate of return = Risk free rate of return + beta × (market rate of return - risk free rate of return)
Here we assume the risk free rate of return be x
So ,
16.35% = x + 1.5 × (12.5% - x)
16.35% = x + 18.75% - 1.5x
16.35% - 18.75% = -0.5x
x = 4.8%
Hence, the risk free rate of return is 4.8%
Answer:
$630
Explanation:
Calculation for her new premium if she transfers to the Superior Insurance Company
First step
Drivers aged 24 to 49 0.05
Discount for cars with antitheft device 0.11
Driving Course 0.03
Accident Free 0.06
TOTAL 0.25
Second step is to Calculation for her new premium
New premiun=$840*(1-0.25)
New premium =$840*0.75
New premium =$630
Therefore her new premium if she transfers to the Superior Insurance Company will be $630
