if all other characteristics are similar, ____ would have to offer ____.

Answers

Answer 1

If all other characteristics are similar tax-exempt securities would have to offer a higher before-tax yield than taxable securities, option (d) is correct.

Tax-exempt securities, such as municipal bonds, provide income that is not subject to federal income tax. In comparison, taxable securities, like corporate bonds, are subject to taxation on the interest income received. When all other characteristics, such as credit quality and maturity, are similar between tax-exempt and taxable securities, the tax-exempt securities would need to offer a higher before-tax yield to compensate for the tax advantage they provide.

This higher yield helps to offset the tax burden that investors would face with taxable securities, making tax-exempt securities more attractive in terms of potential returns, option (d) is correct.

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The complete question is:

If all other characteristics are similar, ____ would have to offer ____.

a. taxable securities; a higher after-tax yield than tax-exempt securities

b. taxable securities; a higher before-tax yield than tax-exempt securities

c. tax-exempt securities; a higher after-tax yield than taxable securities

d. tax-exempt securities; a higher before-tax yield than taxable securities


Related Questions

How does accountability contribute to democratic life?

Answers

Democracy produces an accountable government because it provides regular, free and fair elections regularly. Democracy gives its citizens the right to information about the government and its functioning. Democracy provides a responsive government as it is formed by elected representatives of the people.

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Where can you find information about how the park is rescuing endangered species? Use the print text feature to find the answer.

A) Page 2
B) Page 3
C) Page 4
D) Page 5

Answers

Answer:

page 4

Explanation:

Answer:

B) Page 3

Explanation:

Since page 3 is entitled "Animal survival", that page should be dealing with endangered species and their preservation.

typical uses of within-class ability grouping reflect the tendency of teachers to:

Answers

The typical uses of within-class ability grouping reflect the tendency of teachers to cater to the diverse learning needs of their students.  Within-class ability grouping is the instructional practice of separating students into groups based on their ability level within the same classroom. This instructional strategy is employed to provide instruction tailored to the unique needs of each group of students, which can be beneficial to both high- and low-achieving students.

A study conducted by the National Research Council in the United States found that within-class ability grouping could lead to more effective instruction and learning. This is because teachers can deliver instruction that is tailored to the needs of each group of students, which may be more effective than instruction that is designed to meet the needs of all students at once. In general, the typical uses of within-class ability grouping reflect the tendency of teachers to provide students with differentiated instruction. This approach recognizes that students learn differently and have varying levels of knowledge and skills. By grouping students according to their ability level, teachers can provide instruction that is tailored to their needs, which can help to improve learning outcomes and increase student engagement.

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one advantage of using web of science and scopus for locating previous research is that they

Answers

One advantage of using Web of Science and Scopus for locating previous research is that they provide comprehensive coverage of scholarly literature across various disciplines.

These databases index a wide range of reputable journals, conference proceedings, and other scholarly publications, making them valuable tools for researchers seeking relevant and reliable information.

Web of Science and Scopus offers extensive coverage of academic literature, including articles from numerous peer-reviewed journals. They employ rigorous selection criteria to ensure the inclusion of high-quality research, helping researchers access reputable sources for their studies.

Moreover, both databases provide advanced search functionalities and citation-tracking features, allowing users to explore the interconnectedness of research and identify influential papers.

By using Web of Science and Scopus, researchers can benefit from the following advantages:

1. Comprehensive coverage: These databases include a vast number of journals and publications, enabling researchers to access a wide array of relevant studies and interdisciplinary research.

2. Reliable and high-quality sources: Web of Science and Scopus index reputable journals, ensuring that researchers have access to trustworthy and peer-reviewed literature.

3. Citation tracking: Researchers can trace the citation history of a particular paper, track its impact, and identify key authors and publications in a specific field.

In conclusion, Web of Science and Scopus offers researchers a valuable resource for locating previous research. Their comprehensive coverage, the inclusion of reputable sources, and citation tracking capabilities make them essential tools for conducting literature reviews and staying updated with the latest scholarly developments.

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What is the result of American dependence on foreign energy sources?
A) loss of jobs
B) increased consumer prices
C) national security threats
D) a and b only
E) all of the above
Please select the best answer from the choices provided

pls help fast it’s timed

Answers

The answer to the question is D
the answer is E all of the above

By far the most successful alternative approach to bail is being released on one's own recognizance.
a. True
b. False

Answers

The given statement, "By far the most successful alternative approach to bail is being released on one's own recognizance," is true because being released on one's own recognizance (ROR) has proven to be highly effective in ensuring court appearances and reducing recidivism rates. The correct option is A.

When a defendant is released on their own recognizance, they are allowed to be released from custody without having to pay bail. This approach is typically reserved for individuals who are considered low flight risks and nonviolent offenders. Studies have shown that ROR is associated with a high rate of court appearances, indicating that defendants released on their own recognizance are more likely to fulfill their legal obligations.

Additionally, ROR has been linked to lower rates of recidivism, as it allows individuals to maintain their employment, family ties, and stability while awaiting trial.
The correct option is A.

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choose the organism that shows the characteristics given in each number. choose more than one.

1. moves from one place to another using its own reflexes or body.
a. narra
b. pencil
c. lizard
d. rock
e. crabs
f. paper
g. fish

2. develops into mature individual or species.
a. narra
b. pencil
c. lizard
d. rock
e. crabs
f. paper
g. fish

3. take in food and excretes wastes.
a. narra
b. pencil
c. lizard
d. rock
e. crabs
f. paper
g. fish

4. breathe.
a. narra
b. pencil
c. lizard
d. rock
e. crabs
f. paper
g. fish

5. reproduce its own kind whether sexual or asexual.
a. narra
b. pencil
c. lizard
d. rock
e. crabs
f. paper
g. fish

Answers

Answer:

do u know de way?

Explanation:

https://youtu.be/rY2ujBWiEbg

Planters established cotton and tobacco plantations in Florida because they a. had to move from Texas after the Mexican War. b. wanted to set up new cities there. c. needed more fertile farmland. d. no longer wanted to live in the United States.​

Answers

Answer:

The Answer is C: Needed more fertile farmland

Explanation:

Its arid, desert terrain offered those escaping religious persecution an unpopulated location in which to seek refuge. Its location would allow access to the Pacific Ocean. Its fertile soil and warm climate allowed planters to establish cotton and tobacco plantations.

In 1606, the king of England gave permission to which group to start a new colony?

Answers

the Virginia Company of London

What is cyber bullying about​

Answers

Answer:

Cyberbullying or cyberharassment is a form of bullying or harassment using electronic means. Cyberbullying and cyberharassment are also known as online bullying. It has become increasingly common, especially among teenagers, as the digital sphere has expanded and technology has advanced

Provide your opinion on relationship or differences between Accounting and accountability?

Answers

Accounting refers to the systematic and comprehensive recording of financial transactions or events, as well as the measurement, processing, interpretation, classification, summarization, communication, and analysis of financial data or information.

This is done in order to assist internal and external stakeholders in making informed decisions. Accountability, on the other hand, refers to the obligation of an individual or organization to account for its actions, accept responsibility for them, and disclose their results in a transparent and verifiable manner. It is a crucial component of governance, and it entails answering to stakeholders who have a vested interest in the entity's activities and outcomes. The two terms, accounting and accountability, are related in that accounting is frequently used to assist in achieving accountability. Accounting is used to keep track of financial transactions and produce financial statements, which are essential components of accountability. In the event that an organization fails to meet its accountability requirements, the accounting function may assist in identifying the source of the issue and determining the appropriate remedy. In conclusion, accounting is a tool for assisting in the achievement of accountability, and the two are inextricably linked.

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What happens in a flower after it has been fertilized with pollen? (SC.4.L.16.1)

Answers

From the anther the pollen grains are first deposited on the pistil's surface, the stigma. There they germinate and form pollen tubes, which grow downward through the style toward the ovules. Fertilization occurs as a sperm cell in a pollen tube fuses with the egg cell of an ovule, resulting in a plant embryo.

If the price of apples rises from $.50 to $1.50 and quantity demanded falls from 1,000 to 900, we can conclude that the price elasticity for apples is

Answers

The price elasticity for apples is inelastic.

Price elasticity measures the responsiveness of quantity demanded to a change in price. If the price elasticity of a good is less than 1, it is considered inelastic, indicating that the change in quantity demanded is proportionately less than the change in price. In this scenario, the price of apples increased from $0.50 to $1.50, while the quantity demanded decreased from 1,000 to 900.

To calculate the price elasticity, we use the formula:

Price elasticity = (% change in quantity demanded) / (% change in price)

Using the given values, we have:

% change in quantity demanded = [(900 - 1,000) / 1,000] * 100% = -10%

% change in price = [(1.50 - 0.50) / 0.50] * 100% = 200%

Price elasticity = (-10% / 200%) = -0.05

Since the absolute value of the price elasticity is less than 1, we can conclude that the price elasticity for apples is inelastic. This means that the change in price had a proportionately smaller impact on the quantity demanded, indicating a relatively lower sensitivity to price changes.

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w.t. stace argued against hard determinism by claiming that _______.

Answers

W.T. Stace argued against hard determinism by claiming that human freedom is compatible with determinism.

According to him, free will is not the freedom to act randomly or without reason but to choose rationally among alternatives, and humans can make meaningful choices despite the limitations of determinism. W.T. Stace, a philosopher, opposed hard determinism by stating that humans can choose their actions, thoughts, and beliefs in a way that is compatible with determinism.

Determinism is the belief that all occurrences, including human behavior and decision-making, are predetermined and beyond our control. Hard determinists claim that this eliminates the possibility of free will, which Stace opposes. Stace claims that free will is the ability to choose between alternatives based on rational deliberation, even if the outcomes of those choices are predetermined. In other words, according to Stace, even if our actions are determined by prior causes, we still have the ability to choose and act freely based on rational deliberation. In this way, he reconciles the apparent conflict between determinism and human freedom.

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What do you think is the rationale for changes in delivery models (for gifted children) as students get older and progress through school levels? Do you think the models used at high school for gifted students level are appropriate?

Answers

The changes in delivery models (for gifted children) as students get older and progress through school levels are necessitated by several reasons. As gifted students get older, they require a more challenging, rigorous, and specialized curriculum that aligns with their unique strengths, talents, and interests.

Therefore, schools need to develop delivery models that provide the students with opportunities to learn at their pace and academic level. At the elementary school level, students can be grouped in homogenous groups or clusters where they engage in enrichment and acceleration activities. These activities are designed to challenge them to think critically and creatively, and they are provided with content that is more challenging than the regular curriculum.

In middle school, gifted students can be provided with the opportunity to take advanced courses in various subjects, participate in research projects, and engage in mentorships and internships with professionals in their field of interest. At this stage, students can start to focus on their strengths and begin to plan for their academic and career goals.

In high school, gifted students can be provided with an even more challenging curriculum, which may include Advanced Placement, International Baccalaureate, and dual enrollment courses. They can also participate in independent research projects, service-learning, and mentorship opportunities. They can engage in competitions, attend academic conferences, and participate in internships and apprenticeships.

Overall, the models used at high school for gifted students level are appropriate. However, the schools should ensure that these models provide gifted students with the necessary resources and support they need to succeed. They should also provide opportunities for students to interact with peers who share similar interests and abilities.

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classify the causes into push and pull factors of the migration of 1947.write its effects in the table below
Please hurry

Answers

Push factors “push” people away from their home and include things like war. Pull factors “pull” people to a new home and include things like better opportunities. The reasons people migrate are usually economic, political, cultural, or environmental.

Causes of migration

Push factors occur where someone is currently living and make continuing to live there less attractive. A push factor could be political unrest, a lack of job opportunities, or overcrowding. Pull factors occur in a potential destination and make it an attractive place to migrate to.

Push factors may include conflict, drought, famine, or extreme religious activity. Poor economic activity and lack of job opportunities are also strong push factors for migration.

Natural disasters, political revolutions, civil war, and economic stagnation are all reasons why people might want to migrate away from a certain area. Job placement, however, is an example of a “pull factor,” something that makes an individual want to migrate to a certain area.

mrs. nosey diverts her sexual and aggressive impulses toward an object of person that is psychologically more acceptable. this defense mechanism is called:

Answers

Mrs. Nosey Diverts her sexual and aggressive impulses toward an object of person that is psychologically more acceptable.

This defense mechanism is called displacement.Displacement is a psychological defense mechanism that transfers and diverts the impulse to a less threatening object or person. According to Sigmund Freud's psychoanalytic theory, displacement is an unconscious defense mechanism used to overcome anxiety. Mrs. Nosey Diverts her sexual and aggressive impulses towards a more suitable psychological object or person.The displacement defense mechanism redirects the sexual or aggressive energy away from its original focus and to a safer one. By redirecting the aggressive or sexual impulses away from their initial target to a less harmful target, displacement enables an individual to control the anxiety caused by the impulses.Psychoanalytic theory suggests that unconscious mind tries to protect individuals from their sexual and aggressive impulses by using defense mechanisms like displacement.

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Select the false statement below concerning survey research. Group of answer choices A mailed questionnaire is the most common survey research method in kinesiology. Survey research is the most common type of descriptive research in kinesiology. One advantage of structured interviews and closed-ended questionnaire items is that the same information is obtained from each participant, and it is obtained in an organized manner. Survey research can be conducted by using several different methods. Survey research has few limitations in terms of applications and information obtained.

Answers

Answer:

survey research has few limitations in terms of applications and information obtained

Explanation:

A survey research has many limitations regarding the applicability of the results and information presented by it. These limitations occur, mainly, due to the lack of homogeneity of the participants, who can present the most diverse characteristics, being a very heterogeneous, dynamic group that cannot be controlled. This prevents the survey from showing immutable data about something specific, and can only be applied in comprehensive and generalized situations. In addition, the data obtained in this type of research can be modified very quickly and lose its applicability.

It should be noted that survey research is research carried out to obtain information about something, based on the opinion of a group of people. An example of an opinion poll is the electoral polls conducted to find out which candidate for some political office is more popular than another, according to the population's intention to vote.

fire prevention codes may include provisions for closing properties for repeat serious code offenses. for what type of facilities would this most likely occur?

Answers

Fire prevention codes may include provisions for closing properties for repeat serious code offenses, most likely occurring in facilities such as commercial buildings, industrial complexes, public venues, or multi-unit residential properties.

Fire prevention codes aim to ensure the safety of occupants and property by setting regulations for fire prevention measures, emergency exits, fire suppression systems, and other related aspects. When properties repeatedly violate fire code offenses, especially serious ones, authorities may enforce provisions to close down the facilities temporarily or permanently until the violations are addressed and resolved.

The specific type of facilities where closure provisions are most likely to occur include commercial buildings (e.g., offices, retail stores), industrial complexes, public venues (e.g., theaters, stadiums), or multi-unit residential properties (e.g., apartment buildings). These are the types of facilities that typically have a higher risk due to larger occupancies, complex systems, or potential public safety concerns. The decision to close a property is made to protect the safety and well-being of individuals and ensure compliance with fire prevention regulations.

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India’s form of government

Answers

Answer:

India is a sovereign socialist secular democratic republic with a parliamentary system of government that is federal in nature and has unitary characteristics. A Council of Ministers, led by the Prime Minister, advises the President, who is the country's political leader.

Explanation:

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Your company is restructuring, and two layers of management have been eliminated. You now report directly to the national sales manager instead of a regional sales manager. a.Innovative communication technologies b.Teaming c.Flattened management hierarchies

Answers

You now report directly to the national sales manager instead of a regional sales manager. This is A) flattened management hierarchies.

Flattened hierarchies enable employee participation or involvement through a decentralized decision-making process. The major goal is for well-trained people to become more productive by direct involvement in decision-making rather to being tightly supervised by several layers of management.

A flat organization is one that has few or no tiers of management between workers and management. As in the given scenario, a specific number of layers are reduced, and workers now report directly to the national sales manager rather than the regional sales manager, resulting in flattened management hierarchies.

Holacracies and other forms of flat hierarchies share a lower-than-normal layer of middle management. Some flat hierarchies lack middle managers between workers and executives, instead relying on self-organizing teams or rotating team leaders to make decisions.

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Correct question:

Your company is restructuring, and two layers of management have been eliminated. You now report directly to the national sales manager instead of a regional sales manager. This is _____.

A) Flattened management hierarchies

B) Changing communication technologies

C) Nonterritorial offices

how did the campaigns in the election of 1860 reflect sectional turmoil in the country

it is also in history

Answers

Answer:

The 1860 United States presidential election was the 19th quadrennial presidential election, held on November 6, 1860. In a four-way contest, the Republican Party ticket of Abraham Lincoln and Hannibal Hamlin, absent from the ballot in ten slave states, won a national popular plurality, a popular majority in the North where states already had abolished slavery, and a national electoral majority comprising only Northern electoral votes. Lincoln's election thus served as the main catalyst of the American Civil War. The United States had become increasingly sectionally divided during the 1850s, primarily over extending slavery into the Western territories. The incumbent president, James Buchanan, like his predecessor, Franklin Pierce, was a Northern Democrat with Southern sympathies. From the mid-1850s, the anti-slavery Republican Party became a major political force, driven by Northern voter opposition to the Kansas–Nebraska Act and the Supreme Court's 1857 decision in Dred Scott v. Sandford. From the election of 1856, the Republican Party had replaced the defunct Whig Party as the major opposition to the Democrats. A group of former Whigs and Know Nothings formed the Constitutional Union Party, which sought to avoid disunion by resolving divisions over slavery with some new compromise. The 1860 Republican National Convention in Chicago nominated Lincoln, a moderate former one-term Whig Representative from Illinois. Its platform promised not to interfere with slavery in the South but opposed extension of slavery into the territories. The 1860 Democratic National Convention adjourned in Charleston, South Carolina, without agreeing on a nominee, but a second convention in Baltimore, Maryland, nominated Illinois Senator Stephen A. Douglas. Douglas's support for the concept of popular sovereignty, which called for each territory's settlers to decide locally on the status of slavery, alienated many radical pro-slavery Southern Democrats, who wanted the territories, and perhaps other lands,

Explanation:

international relations
Illegal migration at the US border. How are some local governments responding?

Answers

Some local governments in response to illegal migration at the US border are implementing various approaches, including humanitarian aid and support, collaboration with federal agencies, community outreach, and legal assistance for migrants.

The issue of illegal migration at the US border is complex and involves multiple levels of government, including local governments. While immigration enforcement primarily falls under federal jurisdiction, some local governments have taken steps to respond to the challenges posed by illegal migration. Here are some common approaches:

Humanitarian Aid and Support: Local governments may establish initiatives to provide humanitarian aid, such as temporary shelter, food, and medical assistance, to individuals and families in need, recognizing the humanitarian aspect of the situation.Collaboration with Federal Agencies: Local governments often cooperate with federal agencies, such as Immigration and Customs Enforcement (ICE), to ensure public safety and address immigration-related issues within their communities.Community Outreach and Integration: Local governments may engage in community outreach efforts to promote understanding and integration of immigrant populations. This can involve establishing programs that provide language assistance, cultural resources, and community support networks.Legal Assistance: Some local governments offer legal assistance or connect migrants with legal aid organizations to ensure that their rights are protected and they have access to due process.

It's important to note that the responses of local governments can vary depending on the specific jurisdiction, political climate, available resources, and the overall approach to immigration matters.

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Which of the following statements is true with regards to Milgram's experiments on obedience?

a) About 65% of the participants would deliver shocks up to the highest setting, which was surprisingly low according to expert psychologist predictions.

b) Subjects would be least likely to obey if the experimenters were students, absent from the room and if subjects had to physically touch the learner to shock them.

c) Hofling tried to replicate Milgram's experiments in a real-world setting but found that trained nurses would not violate rules, even when instructed to by an authority figure.

d) The experimenters specifically picked out participants who were good at acting to be their learners, which calls into question the validity of the experiment

Answers

According to Milgram's experiments on obedience, the following statement is true: b) If the experimenters were fellow students, not present in the room, or required that the subjects contact the learner in order to shock them, participants would be least likely to comply.

Milgram's experiments on obedience showed that individuals would tend to obey orders given by authority figures even when those orders went against their own morals and ethics. In the experiments, the subjects were given the task of administering electric shocks to a person in the adjacent room who was pretending to be in pain. In reality, there were no electric shocks.The study found that the majority of participants continued to deliver the electric shocks to the pretend victim, despite hearing the cries of pain.

Furthermore, the percentage of people who obeyed in Milgram's study was greater than expected, leading psychologists to call into question whether individuals are capable of resisting authority even if the order goes against their own morality and ethical standards. The study discovered that subjects would be least likely to obey if the experimenters were students, absent from the room, and if subjects had to physically touch the learner to shock them.

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Trevor, a high school senior, has always been a great student. However, in the last few months, he has quit the soccer team, lost interest in hanging out with his friends, and has seen a severe drop in his grades. Even though he has always been very close to his parents, Trevor refuses to talk to them regarding his behavior change. As a result, his parents decide to take him to a doctor. His doctor feels Trevor is suffering from clinical depression as a result of a concussion he received earlier in the season. Which perspective BEST explains Trevor's behavior according to his doctor

Answers

Answer:

Biological

Explanation:

Depression

This are disorders that usually affects mood, physical and mental health of an individual.. it is of a prevalence and lifetime. It is characterized by symptoms: females-sadness, males-irritability, anger.

Clinical depression

This is a mental disorder characterized by prolonged weeks of low mood that is persistent across most situations.

There is an evidence of biological factors in Depression. They are simply disorders that have genetic basis and can be treated with drugs that may correct the imbalance. The are usually are accompanied by changes in biological function (sleeping, eating) and there may be brain abnormalities underlie the disorder and anxiety.

What is an example of adolescents' tendency to think more logically during the formal operational stage?

Answers

The example of adolescents' tendency to think more logically during the formal operational stage is an ability to form hypotheses and think about abstract ideas.

Adolescence, the third stage of the developmental stages, includes physical, emotional, and cognitive changes. This stage is characterized by the ability of individuals to think abstractly and hypothetically, as well as develop more complex social skills and relationships.The formal operational stage is a stage of cognitive development that occurs during adolescence. Adolescents begin to develop the ability to think logically about abstract concepts during this stage. They become capable of formulating and testing hypotheses, understanding metaphor and allegory, and grasping the complexities of multiple perspectives.In conclusion, the example of adolescents' tendency to think more logically during the formal operational stage is an ability to form hypotheses and think about abstract ideas.

An example of adolescents' tendency to think more logically during the formal operational stage is their ability to engage in hypothetical-deductive reasoning.

Hypothetical-deductive reasoning is the ability to form and test hypotheses systematically. During the formal operational stage, adolescents can think about hypothetical situations, generate possible explanations or solutions, and systematically evaluate them to arrive at logical conclusions.

For instance, an adolescent in the formal operational stage might be presented with a problem or a hypothetical scenario and be able to consider various options, generate hypotheses, and test them by systematically working through different possibilities. They can use deductive reasoning to evaluate the logical implications of different hypotheses and draw conclusions based on the evidence and reasoning at hand.

This ability to engage in hypothetical-deductive reasoning is a hallmark of the formal operational stage and represents a significant cognitive advancement compared to earlier stages of development.

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pleeeease help!!

what percentage of eligible americans are not registered to vote?

A. 30 percent

B. 35 percent

C. 40 percent

D. 25 percent

Answers

Answer:

40%

Explanation:

Should be correct based on some research i just did.

green < 9 red > 4 red > 4 red > 4

Answers

Answer:

im sorry is this a question? im sorry if it isn't i dont understand what your tryna say..

Explanation:

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Use the data below to make the proper conclusion for question #4.
South Africa
Per Capita GDP: $11,600
Literacy Rate: 93%
Nigeria
Per Capita GDP: $1,900
Literacy Rate: 61.3%
What conclusion can be drawn from the data in the chart above?
A. The standard of living in Nigeria is higher than in South Africa.

B. South Africa is a poorer country than Nigeria.

C. Nigeria's government invests more in education than South Africa.

D. The standard of living in South Africa is higher than in Nigeria.

Answers

Answer:

D) The standard of living in South Africa is higher than in Nigeria

Explanation:

The literacy rate and GDP are higher in South Africa than in Nigeria.

4. Refer to Table 16. 2 and assume that the Fed's reserve ratio is 10 percent and the economy is in a severe recession. Also sup pose that the commercial banks are hoarding all excess reserves (not lending them out) because of their fear of loan defaults. Finally suppose that the Fed is highly concerned that the banks will suddenly lend out these excess reserves and possibly con tribute to inflation once the economy begins to recover and confidence is restored. By how many percentage points would the Fed need to increase the reserve ratio to eliminate one -third of the excess reserves? What would be the size of the monetary multiplier before and after the change in the reserve ratio ? By how much would the lending potential of the banks decline as a result of the increase in the reserve ratio ? L016. 3

Answers

The Fed would need to increase the reserve ratio by 3.33 percentage points to eliminate one-third of the excess reserves. Explanation:Given that the reserve ratio is 10% and the economy is in a severe recession with commercial banks hoarding all excess reserves because of their fear of loan defaults.

The Federal Reserve is highly concerned that the banks will suddenly lend out these excess reserves and possibly contribute to inflation once the economy begins to recover and confidence is restored.By increasing the reserve ratio, the banks' ability to lend will be limited and the banks will be encouraged to hold more of their assets in reserve. This will reduce the excess reserves, which will help prevent inflation in the future.

To eliminate one-third of the excess reserves, the Fed would have to increase the reserve ratio by 3.33 percentage points. This is calculated as:One-third of excess reserves = 1/3 × $63 billion = $21 billion.To find the increase in the reserve ratio, we can use the reserve requirement formula:Required reserves = Reserve ratio × DepositsOrReserve ratio = Required reserves / DepositsWe know that the total deposits are $630 billion (see table). If the Fed wants to eliminate $21 billion in excess reserves, it must make the banks hold an additional $21 billion in reserves. The required reserves will therefore increase by $21 billion.Using the reserve requirement formula, we can calculate the new reserve ratio:Required reserves = Reserve ratio × Deposits($63 billion + $21 billion) = Reserve ratio × $630 billionReserve ratio = $84 billion / $630 billionReserve ratio = 0.1333 or 13.33%Therefore, the Fed would need to increase the reserve ratio by 3.33 percentage points (13.33% - 10%) to eliminate one-third of the excess reserves.The monetary multiplier before the change in the reserve ratio can be calculated as:Multiplier = 1 / Reserve ratioMultiplier = 1 / 0.10Multiplier = 10The monetary multiplier after the change in the reserve ratio can be calculated as:Multiplier = 1 / Reserve ratioMultiplier = 1 / 0.1333Multiplier = 7.5The size of the monetary multiplier will decline from 10 to 7.5 as a result of the increase in the reserve ratio.By increasing the reserve ratio by 3.33 percentage points, the lending potential of the banks will decline. The amount of excess reserves that the banks are hoarding will decrease, and the required reserves will increase. This will limit the banks' ability to lend, resulting in a decrease in the lending potential.

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