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A key feature of a macroeconomic model is whether it assumes that prices are flexible or sticky. According to most macroeconomists, models with flexible prices describe the economy in the long run, whereas models with sticky prices offer a better description of the economy in the short run. Which one of thoughts discussed above do you support? Why? Support your answer with evidence.
Currently, we Ethiopian faced a problem of war in some part of Ethiopia such as State of Amhara, State of Afar and Tigray. This problem caused low production, output, high unemployment rate, low aggregate demand. The macroeconomics has considered the state of macroeconomics, the philosophies that have been most important in the 21th century. Given the situation, what would a state of macro economics recommend be done? And as off you what would be done?
How often does the price you pay for a clean your shoes? What does your answer imply about the usefulness of market-clearing models for analyzing the market for shoes shine?
What do you think are the defining characteristics of a science? Does the study of the economy have these characteristics? Do you think macroeconomics should be called a science? Why or why not?
Suppose the production function a firm producing Q requires the use of only labor and
capital. The production function for the product is given by: Q-1/4K3/4. The amount of capital used is fixed at 5 units. Then,
A. Determine MPL and APL function
B. Determine MP and AP function
C. Compute MRTSKL & MRTS LK
If this market has very elastic supply and very inelastic demand how would the burden of a text on rubber bands be shared between consumer and produces use the tool of consumer surplus and producer surplus in your answer
ABBA Corp has issued ABBA Bond on discount on April 6, 2010. This 8 percent bond is
redeemable at par on April 6, 2030, or on any optional redemption date. The expected
yield of the bond on the date of issue was 10 percent p.a. Coupon for the bond is paid
quarterly. The earliest possible ABBA Corp could redeem the whole bond (but not in part)
is at the end of its 12-year deferment period with a 12 percent call premium. An investor
has decided to purchase this bond today, December 21, 2019, when the interest rate has
increased by 2 percent (from the last known rate).
i) Compute his current yield on the date of purchase.
ii) Compute his yield to call.
a) Aspian Tres Bhd issued a bond on March 18, 2019. The terms were as follows:
Currency Denomination Malaysian Ringgit
Denomination/Par Value MYR100,000
Maturity Date March 18, 2029, or an optional redemption date
Redemption/payment basis Redemption at Par Value
Interest Payment Dates March 18
September 18
Optional Redemption Date The issuer has the right to call the instruments in
whole (but not in part) at 10 percent call premium
starting March 18,2024 with a reducing premium of
200 basis point annually thereafter.
Interest Rate Fixed rate of 6% for the whole term of bond
A fund manager with XYZee Fund in Singapore is considering this bond on November
1st, 2020:
.
i) Compute the amount paid for a unit of this bond in the investor’s local currency if the
expected return on this bond is expected at 6.6 percent and the exchange rate is
SGD1/MYR3.06. (Disregard fees and other expenses)
1. A local grocery store purchases a dozen of eggs for P60. 00 and sell it for P84. 00. Compute for the:
a. Mark-up
b. Mark-down
c. Gross margin
d. Gross margin ratio
3. After a reduction of trade discount rate of 25% of the merchandise purchased, the invoice price was P13, 000.00. what was the list price?
4. A television is listed at P333,000.00 less discount of 5%, 7% and 9%. Fins the net price.
5. Two suppliers offer identical sets of kitchen wares at the same list price. However, company ABC gives trade discount series of 20%, 15% and 5%, while company DEF offers 25%, 10% and 54%. Which is a better discount for the buyer?
What do you think are the defining characteristics of a science? Does the study of the economy have these characteristics? Do you think macroeconomics should be called a science? Why or why not?
