Answer:
B. a change in the money supply changes real variables but not nominal variables
Explanation:
Money neutrality is an economic theory that says that money supply only affects nominal varabmles but not real variables.
Answer:
Her Yearly Repayment will be approximately $5771
Explanation:
For an Amortized Loan, to calculate the payment amount per period, we use the formula:
A=[P(1+r)ⁿ]/[(1+r)ⁿ-1]
where A=Payment per period
P= Initial Principal/Loan Amount
r= Interest rate per period
n= number of payments period
From the information provided,
P=$20000
n=4 years
r=6%=0.06
Therefore Yearly Repayment Amount A=[Pr(1+r)ⁿ]/[(1+r)ⁿ-1]
=[20000X0.06(1+0.06)⁴]/[(1+0.06)⁴-1]
=[1200(1.06)⁴]/[(1.06)⁴-1]
=[1200X1.2625]/[1.2625-1]
=1515/0.2625
=$5771.43
Answer: Reactive change
Explanation:
The reactive change is one of the type of concept that is specifically implemented in an organization by essential changing made in the system without any delay.
In this type of changes, the changes are made by the outside forces in an organization and with the helps of this change the companies basically interesting the various types of policies for the flexibility of the employees.
According to the given question, the Given example is best illustrating the reactive change concept as it is necessary for the employees of the company. Therefore, reactive change is the correct answer.
Answer:
The second option is the cheapest.
Explanation:
Giving the following information:
The first company offers free installation and equipment, but will charge you $401.00 per year forever. The second company charges $783.00 for installation, but will charge you $204.00 per year forever. Assume that payments are at the END of the year. Your personal interest rate is 5.00% per year
To calculate the present value, we need to use the formula for a perpetual annuity:
PV= Cf/i
Cf= cash flow
i= interest rate
Option 1:
PV= 401/0.05= $8,020
Option 2:
PV= 204/0.05 + 783/1.05= $4,825.71
The second option is the cheapest.
Answer:B. if transaction costs are low, private bargaining will result in an efficient solution to the problem of externalities.
Explanation:
The coarse theorem:
If there is a conflict between parties this will lead to an effecient results irrespective of who won the right to the property as long as the transaction cost related to the price negotiation is insignificant.
