In-arrear swaps are popular products in a steep yield curve environment to a fix rate receiver who thinks that short term rates will not rise as fast as the yield curve predicts‚ pocketing up the difference between the fix rate of the standard swap and the one of the in-arrear swap known as the pick up‚ while still paying low Libor resets. Usually‚ clients (corporates or financial institutions) receive fix and pay floating. In a steep yield curve environment‚ because of the delayed resets‚ an in-arrear
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cardinal approach 5.6 Consumer’s surplus 5.7 The ordinal utility approach to consumer behaviour: the indifference curve approach 5.8 Consumer’s budget constraint 5.9 Consumer’s equilibrium in the ordinal utility approach 5.10 Special cases 5.11 Price-consumption curve 5.12 Income-consumption curve 5.13 Price‚ substitution‚ and income effects 5.14 Derivation of the demand curve for a good 5.15 Inferior goods and Giffen goods 5.16 Let us sum up 5.17 Some key words 5.18 Some useful books
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6 Most Important Things to Consider When Choosing a Broker The retail forex market is so competitive that just thinking about having to sift through all the available brokers can give you a major headache. Choosing which broker to trade with can be a very overwhelming task especially if you don’t know what you should be looking for. In this section‚ we will discuss the qualities you should look for when picking a broker. 1. Security The first and foremost characteristic that a good broker must
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be falling. C) can be less than zero. D) never equals average product. Ans: C Exhibit 3 4. (Exhibit 3: Short-Run Costs) Curve A is the _______ cost curve. A) average total B) average variable C) marginal D) total Ans: C Exhibit 4 5. (Exhibit 4: A Firm ’s Cost Curves) The curve labeled V represents the firm ’s _______ curve. A) total cost B) average total cost C) marginal cost D) average variable cost Exhibit 5 | | 6. | (Exhibit 5:
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of an indifference curve? Question 5 answers | | An indifference curve is convex to the origin / | | | The consumer is indifferent between any two points on an indifference curve / | | | The marginal rate of substitution diminishes as you move down the indifference curve | / | | As you move from one indifference curve to another indifference curve closer to the origin‚ utility increases | An indifference curve is Question 6 answers
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In addition‚ the Gini coefficient‚ “which directly relates to the graphical depiction of inequality provided by the Lorenz Curve” ‚ shows Australia rising from 0.307 in 1995/96 to 0.345 in 2007/08. This large increase in the Gini coefficient of around 0.25 to over 0.30 was a result of the 1991 recession‚ in which “long-term unemployment became entrenched and underemployment
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quantity supplied is less than the new quantity demanded at that price. The existence of the shortage will cause the price to rise. As price rises‚ the quantity supplied will increase and the quantity demanded will decrease (along the new demand curve) until equilibrium
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applying a translog variable cost function‚ the capacity utilization has been estimated with respect to two alternative measures of potential output: (i) where short-run average cost is minimum‚ and (ii) whe re short-run and long-run average cost curves are tangent. The results reveal that the capacity utilization in Indian Airlines has been poor in general and also declining over the last decade. Therefore‚ the study suggests a need to improve the capacity utilization‚ which in turn would improve
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Morton & Handley Case Study a. What are the four most fundamental factors that affect the cost of money‚ or the general level of interest rates‚ in the economy? The four most fundamental factors that affect the cost of money are: production opportunities‚ time of consumption‚ risk and inflation. The interest rate given to savers is based on: the rate of return on invested capital‚ savers time preferences for current versus future consumption‚ the riskiness of the loan‚ the expected future
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Q.1. What are indifference curves? Explain the consumers’ equilibrium under the assumptions of ordinal approach. Utility of goods cannot be measured in terms of précised quantitative term. J. R. Hicks and R.G.D. Allen developed Indifference Curve analysis based on ordinal approach. Indifference curve (IC) is defined as the locus of point which show the different combination of two goods or commodities a consumer is indifferent about the point A or B or C or D. According to this analysis the consumer
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