Q1 1. Assume that the current interest rate is 8%. Let’s say that investors know that normally interest rates are 10%. How would this affect investors’ decisions with regard to how much money and bond holdings to keep? Investors will want to hold more cash instead of bonds. Because the investors know that normally interest rates are 10% which is more than the current interest 8%. That is to say investors expect the interest rates would increase in the future which will cause the decrease of value
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1. Distinguish between an absolute advantage and a comparative advantage. Cite an example of a country that has an absolute advantage and one with a comparative advantage. Absolute advantage is when a monopoly exists in a country when it is the only source and product of an item. Meanwhile‚ a comparative advantage is when a country can supply products more efficiently and at a lower cost than it can produce other items. South Africa has an absolute advantage because of its diamonds. The United States
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Chapter 2: Date of Macroeconomics 1. What components of GDP (if any) would each of the following transactions affect? What will happen to GDP? Explain. a. A family buys a new refrigerator. Answer: Consumption increases because a refrigerator is a good purchased by a household. GDP increases. b. Aunt Jane buys a new house. Answer: Investment increases because a house is an investment good. GDP increases. c. Ford sells a Mustang from its inventory. Answer: Consumption
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1 1 2 3 C Motion I 7 (a) From 1 January 2009 to 10 January 2009‚ the watch runs slower than the actual time by 9 minutes. Therefore‚ when the actual time is 2:00 pm on 10 January 2009‚ the time shown on the watch should be 1:51 pm on 10 January 2009. Practice 1.1 (p. 6) D (a) Possible percentage error 10 −6 = × 100% 24 × 3600 = 1.16 × 10 % 1 (b) = 1 000 000 days 10 −6 –9 It would take 1 000 000 days to be in error by 1 s. (b) Percentage error 9 = × 100% 9 × 24 × 60 = 6.94 × 10–2%
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When it comes to corporate business and the common business the government needs to intervene to make the playing field fair for everyone involved. When competitors seek out the next get big money merger or expansion‚ this is where I believe the government steps in. with the government putting in place regulation such as fiscal policy‚ and monetary policy‚ the grounds of society become equal to the groups of power that have greater economic influence. My stand point on government regulation has
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Introduction: With the interest rates having been cut four times since December 2009‚ by 350 basis points‚ the South African Reserve Bank (SARB) declared that the domestic economy is slowing. Two consecutive quarters of negative growth is evidence that an economy is in recession. The contraction in growth is believed to have been caused by a slump in export demand‚ forcing both manufacturers and miners to cut production. The SARB’s monetary policy committee is in meeting to discuss further rate
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1. People like Ferraris. Ferrari’s cost as much as consumers are willing and able to pay for them! The cost of Ferrari does depend on markets and prices‚ which makes up the market system. Resource prices also determine the cost a product or good. The higher the resource price‚ the higher the cost of production‚ and price of the good would be‚ which brings you to supply and demand. If you able to produce a product at a certain price and consumers keep buying‚ then you would not have to make any adjustments
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Introduction to Macroeconomics Chapter 1 Introduction to Macroeconomics 1.1 INTRODUCTION • • • • • • • Economics is divided into two main branches: microeconomics and macroeconomics. Macro means large‚ and micro means small. Microeconomics takes a close-up view of the economy by concentrating on the choices made by individual participants in the economy such as consumers‚ workers‚ business managers and investors. Microeconomics stresses on the role of prices in business and personal decisions
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GRADE 9/9 Lind Chapter 9; Exercise 12 The American Sugar Producers Association wants to estimate the mean yearly sugar consumption. A sample of 16 people reveals the mean yearly consumption to be 60 pounds with a standard deviation of 20 pounds. a. What is the value of the population mean? What is the best estimate of this value? The value of population mean is unknown. The best estimate of this value is the sample mean of 60 pounds. b. Explain why we need to use the t distribution. What assumption
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Lesson 4 1. If an economy produces final output worth $5 trillion‚ then the amount of gross income generated by that production: is $5 trillion 2. Which of the following would not be ian expenditure on a final good or service? a medical clinic’s purchase of flu vaccine 3. Which of the following would be included in GDP? payment of the monthly telephone bill by Mr. Laconic 4. Consumption in the expenditures approach to calculating GDP includes: purchases of medical services at the local clinic
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