The figure depicts the market for short-term bonds. Suppose uncertainty about the future will lead investors to move to the short end of the market. (Assume this shock only affects the demand for short-term bonds) Using the line drawing tool, show the effect of this shock on the short-term bond market. Properly label your line. Carefully follow the instructions above, and only draw the required object. Quantity of bonds, B Price of bonds, P

Q: What are the two types of cashflows? Define each

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Q: It refers to annuity that doesn’t start until some time in the future.   a Late Annuity   b…

A: An annuity refers to a contract designed to provide a certain a amount of income which is payable at…

Q: Define the term disbursements?

A: Money: The term money refers to anything that can be used as a medium of exchange and it has a unit…

Q: Other than lenders, who else might use your credit score and why?

A: Credit decisions are made by lenders. Credit reporting agencies sell credit reports on their…

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A: Although looking for a home can be exciting and enjoyable, serious homebuyers should begin their…

Q: Why would someone choose a fixed rate loan over a variable rate loan?

A: In the field of economics, a loan is defined as the act of lending money or resources by one party…

Q: Solar panels on your house will save you $2,000 per year in electricity expense. The panels will…

A: The time it takes to recoup the value of AN investment is mentioned because the payback amount.…

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: You can afford a $350 per month car payment. You've found a 3 year loan at 6% interest. How big of a…

A: Monthly payment that can be affordable is equal to $350 So A=350 The rate of interest  is 6% per…

Q: An account was opened with $1,000 three years ago. Today, the account balance is $1,150.30. If the…

A: Interest is an amount earned on any investment. It can be basically classified as• Simple Interest…

Q: The advantage of a loan is that: its transaction costs are low. it can be tailored to the needs of…

A: Loan: A loan is a sum of money borrowed from a lender with the agreement that it will be repaid,…

Q: You purchased a winning ticket for a $5 million lottery which pays $500,000 immediately and the rest…

A: Here in this question, To decide whether we have to go with the deal or not. We have to find the…

Q: Calculate Savings rate when income is $22000 and the APS is 0.48

A: APS is the average propensity to save. It is the ratio of savings and income.

Q: You opened a savings yesterday by depositing $10,000. You would like to be able to withdraw $2,000…

A: The amount that the lender charges the borrower over and beyond the principal amount is referred to…

Q: If your receive $500 in simple interest on a loan that you made for $10,000 for 5 years, what was…

A: here we calculate the interest rate charged which are as follow-

Q: What will be the Savings given that income is $3200 and APS is 0.48

A: The data presented in the question above is:- Income = $3200 Average propensity to save = 0.48…

Q: Find the savings if the income is $8443 and the consumption is $4022

A: Here, given information is: Income: $8443 Consumption: $4022 To find: savings

Q: What is the cheapest loan?

A: A loan is the lending of money by an individual or a group to another individual or a firm, with an…

Q: GIVE TWO EXAMPLES ON DEFERRED ANNUITY

A: In a market, deffered annuity refers to the amount of  moeny that an individual will gain in the…

Q: Write the different loan terms?

A: A loan is when one or more people, organisations, or other institutions lend money to other persons,…

Q: ?Borrow $100 today at 4% interest. How much do you owe after 5 years

A: Principal = $100 Interest rate = 4%

Q: The value of savings is $390 and income is $650 Calculate APS

A: The information given to us:- Savings of household = $390 Income of household = $650 We have to find…

Q: What are other ways to invest in Real estate? Are they long term or short term?

A: Real estate refers to land and any physical property or structures that are permanently attached to…

Q: If you put your $100 into a saving account which earns 5% interest, how long does it take for your…

A: Given information: Amount kept in saving account = $100 Interest rate = 5%

Q: jerry bought a house for $400,000 and made an $80,000 down payment. the rest of the cost was paid…

A: Jerry purchased a house for $400,000 with an $80,000 down payment and financed the remaining cost…

Q: At what rate of interest will an investment double itself in 10 years?

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: A financial institution (loan shark ) is willing to lend you $400. You pay $450 after one week. a)…

A: The effective interest rate will be including the compounding period into consideration while…

Q: Determine the future worth of her savings after 8 years.

A: First, we find the present worth of her savings after 8 years, then we can calculate future worth…

Q: A person starts her own business, quitting a job in which she was making $125 000 a year. Expenses…

A: Economic profit is accounting profit minus opportunity cost or in other words it also includes…

Q: Is the cash flow broken into four parts? What are they?

A: Answer - Cash Flow - Cash flow means the amount of cash present at a given time which cash used in…

Q: Maria takes out a 30-year mortgage at 5.5% to buy a house that costs $280,000. She must have a down…

A: Note: As per the guidelines, we are allowed to only answer up to 3 sub-parts, so we will answer the…

Q: Explain the content and purpose of a credit report?

A: A credit report is a detailed summary of a person's credit history and financial behavior. It…

Q: How much money is in the account now

A: The formula for calculating the simple interest involves multiplying the principal (P) which is the…

Q: What is the Deferred Savings Plan?

A: A  deferred savings plan is a plan  which allows the taxpayer to pay money in  the plan and  then…

Q: What is the U.S 6 month interest rate?

A: In the mentioned question we have been asked about the 6-month interest rate of the U.S.