<u>The equilibrium rate of return on a 1 year T-bond is 5%</u>
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<h3>Equilibrium rate</h3>
This is the interest rate at which the demand meet the supply at a particular point.
<h3>Equilibrium rate of return</h3>
This is the sum of dividend yield plus the rate of capital gains.
we can also say that the equilibrium rate for a 1 year T-bond in this case is the sum of the real risk free rate and the expected inflation.
Data
- Real risk free rate = 3%
- Expected inflation = 2%
Hence, the equilibrium rate of return will be 3% + 2% = 5%.
From the above, the equilibrium rate of return is 5%
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The statements regarding multiple referrals that are true are:
- Multiple referrals increase the power of the leadership.
- Multiple referrals is more common in the U.S. House than the U.S. Senate.
- Complex bills that concern many different issues may be assigned to different standing committees.
<h3>What is Multiple Referral?</h3>
This refers to the process where a proposed bill in the legislature is sent for a second reading.
Hence, we can see that in the United States legislature, multiple referrals help to increase the power base of the leadership and are more common in the U.S. House than in the U.S. Senate.
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Memorising interviews questions and answers because you don’t want to sound too rehearsed
C) sound waves do not travel in a vacuum. It's also true
