Homework Answers
Answer- b. (1) Inverse; (2) Direct
When the interest rate is higher, the investments are less, because the cost of borrowing increases, therefore people need high return investments.
From the graph below it is clearly visible that interest rate vs investment graph has a negative slope which means that they have inverse relationship.
Energy Cost and production have a direct relationship. As the energy cost increases it means more energy has been used to produce output and therefore the production increases. Similarly if energy cost decreases less energy is used, therefore production would be less, as energy is essential for production.
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Interest rates and investment typically have a ----(1)---- relationship while energy cost and production typically have...
39. The risk structure of interest rates is A. The relationship among interest rates of different...
39. The risk structure of interest rates is A. The relationship among interest rates of different bonds with the same maturity B. The structure of how interest rates move over time. C. The relationship among interest rates on bonds with different maturities. D. The relationship among the prices and interest rates.
7) Given the relationship between interest rates and planned investment planned investment A) increases if the inte...
7) Given the relationship between interest rates and planned investment planned investment A) increases if the interest rate drops from 6% to 4%. B) increases if the interest rate rises from 6% to 8%. C) is unaffected by any changes in interest rates. D) both A) and B) are correct. 8) To combat a recession with fiscal policy, the government should A) reduce government spending. B) reduce taxes on consumers to increase consumer disposable income. C) lower interest rates and...
Yield curve is chart of interest rates (yield) usually with maturities of 1 month to 30...
Yield curve is chart of interest rates (yield) usually with maturities of 1 month to 30 years. The interest rates depicted in the yield curve are of which type? Select one: O a. Annualized rates O b. Forward rates O c. Holding rates O d. Spot rates The relationship between a bond's price (present value) and bond's yield to maturity is inversely proportional; L.e. one goes up when the other goes down and vice versa. Because of that relationship, if...
1.Which of the following is probably the most sensitive to changes in real interest rates? Select...
1.Which of the following is probably the most sensitive to changes in real interest rates? Select one: a. Government purchases b. Exports c. Consumption d. Imports e. Investment 2.When interest rates increase, Select one: a. government purchases will increase to offset the decline in consumption, investment, and net exports. b. expenditures may increase or decrease. c. investment will increase. d. expenditures increase. e. expenditures decrease. 3.If real GDP is greater than potential GDP, Select one: a. the rate of inflation...
Bacterial cells typically have — while eukaryotic cells have — Select one: a. One linear chromosome;...
Bacterial cells typically have — while eukaryotic cells have — Select one: a. One linear chromosome; many circular chromosomes. O b. Two circular chromosomes; numerous circular chromosomes depending on the species. O c. A single circular chromosome; many linear chromosomes. O d. Several circular chromosomes; many linear chromosomes. Which of the following gives additional protection to some bacteria? Select one: O a. The capsule. O b. The nucleoid O c. The plasma membrane. O d. The cell wall. Chloroplasts Select...
Which one of the following is not a non-price determinant of supply? Select one: O a....
Which one of the following is not a non-price determinant of supply? Select one: O a. Available production technology b. Consumers' income c. Resource prices d. The number of producers O o e. The price of related goods and services Another term for a negative relationship is Select one: O a. a fixed relationship O b. an inverse relationship c. a constant relationship d, a direct relationship e a marginal relationship.
1) Interest rates typically display a ____ pattern (relative to the business cycle). A) procyclical B)...
1) Interest rates typically display a ____ pattern (relative to the business cycle). A) procyclical B) cyclically neutral C) countercyclical D) random
a. no relationship b. moderate inverse relationship c. strong direct relationship d. weak direct relationship Using...
a. no relationship
b. moderate inverse relationship
c. strong direct relationship
d. weak direct relationship
Using the following regression statistics select which one of the following best represents the relationship between monthly salary and cost of rent. Regression Statistics: [Multiple R=0.944744; R Square=0.892542; Intercept=1230.242; Rent=6.666983]
The relationship between interest rates and bond maturity is called: A) Liquidity premium B) Yield to...
The relationship between interest rates and bond maturity is called: A) Liquidity premium B) Yield to maturity C) Term structure of interest rates D) Maturity risk E) Inflation premium 2.
The 1-year interest rates on Canadian dollar and U.K. pound are 2% and 5 % respectively....
The 1-year interest rates on Canadian dollar and U.K. pound are 2% and 5 % respectively. If the current spot rate is 2 Canadian dollar per pound, then the 1-year forward rate (F Canadian $/£) implied by the covered interest rate parity approximation would be Select one: o a. 0.97 O b. 1.94 O c. 2.06 d. 2.15 If the 12-month interest rates for the United States and Germany are both 1%, and 1$= 1.20 € in the spot market,...
39. The risk structure of interest rates is A. The relationship among interest rates of different bonds with the same maturity B. The structure of how interest rates move over time. C. The relationship among interest rates on bonds with different maturities. D. The relationship among the prices and interest rates.
7) Given the relationship between interest rates and planned investment planned investment A) increases if the interest rate drops from 6% to 4%. B) increases if the interest rate rises from 6% to 8%. C) is unaffected by any changes in interest rates. D) both A) and B) are correct. 8) To combat a recession with fiscal policy, the government should A) reduce government spending. B) reduce taxes on consumers to increase consumer disposable income. C) lower interest rates and...
Yield curve is chart of interest rates (yield) usually with maturities of 1 month to 30 years. The interest rates depicted in the yield curve are of which type? Select one: O a. Annualized rates O b. Forward rates O c. Holding rates O d. Spot rates The relationship between a bond's price (present value) and bond's yield to maturity is inversely proportional; L.e. one goes up when the other goes down and vice versa. Because of that relationship, if...
Bacterial cells typically have — while eukaryotic cells have — Select one: a. One linear chromosome; many circular chromosomes. O b. Two circular chromosomes; numerous circular chromosomes depending on the species. O c. A single circular chromosome; many linear chromosomes. O d. Several circular chromosomes; many linear chromosomes. Which of the following gives additional protection to some bacteria? Select one: O a. The capsule. O b. The nucleoid O c. The plasma membrane. O d. The cell wall. Chloroplasts Select...
Which one of the following is not a non-price determinant of supply? Select one: O a. Available production technology b. Consumers' income c. Resource prices d. The number of producers O o e. The price of related goods and services Another term for a negative relationship is Select one: O a. a fixed relationship O b. an inverse relationship c. a constant relationship d, a direct relationship e a marginal relationship.
a. no relationship
b. moderate inverse relationship
c. strong direct relationship
d. weak direct relationship
Using the following regression statistics select which one of the following best represents the relationship between monthly salary and cost of rent. Regression Statistics: [Multiple R=0.944744; R Square=0.892542; Intercept=1230.242; Rent=6.666983]
The relationship between interest rates and bond maturity is called: A) Liquidity premium B) Yield to maturity C) Term structure of interest rates D) Maturity risk E) Inflation premium 2.
The 1-year interest rates on Canadian dollar and U.K. pound are 2% and 5 % respectively. If the current spot rate is 2 Canadian dollar per pound, then the 1-year forward rate (F Canadian $/£) implied by the covered interest rate parity approximation would be Select one: o a. 0.97 O b. 1.94 O c. 2.06 d. 2.15 If the 12-month interest rates for the United States and Germany are both 1%, and 1$= 1.20 € in the spot market,...
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