Answer:
Cost of capital is the overall rate of return expected by investors while the discount rate is the minimum rate of return used for appraising a project in order to obtain the net present value.
Explanation:
Cost of capital is calculated as cost of equity multiplied by the proportion of equity in the capital structure plus cost of debt multiplied by the proportion of debt in the capital structure plus cost of preferred stock multiplied by the proportion of preferred stock in the capital structure.
Discount rate is the rate used for determining the attractiveness of a project. This rate is used for determining the net present value of a project.
Answer:
Expansionary fiscal policy; lead to a budget deficit
Explanation:
A balanced budget is when the income of the government equals government's spending
A recession is when the GDP of a country for two consecutive quarters is negative. It is a period of slowdown in economic activities.
If there is a recession, the government would want to increase money supply by conducting an expansionary fiscal policy but would be prevented from doing so because of the balanced budget rule as an expansionary fiscal policy would lead to a budget deficit.
A budget deficit is when government spending exceeds income
The process of linking relief and development is often a major deviation from the missions of both development and relief agencies.-----False
Linking relief and development:
The key to linking relief and development from the development side is to find ways of reducing (a) the frequency and intensity and (b) the impact of shocks, which will in turn reduce the need for emergency relief.
What is development and relief agencies?
IRD is a nonprofit, nongovernmental organization responsible for implementing relief and development programs worldwide. IRD's mission is to empower the world's most vulnerable communities to achieve self-sufficiency through innovative solutions, applied knowledge and targeted expertise.
Learn more about development and relief agencies:
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A decrease in demand for cameras would likely be caused by increased abilities in cell phones for filming
