Blond X has a coupon of 5.2 percent. Bond Z has a coupon of 9.2 percent. Both bonds have 15 years to matunity and have a YTM of 74 percent a. If interest rates suddenly rise by 1.6 percent, what is the percentage price change of these bonds? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places) b. If interest rates suddenly fall by 1.6 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) e- What is your conclusion?

Answers

Answer 1

a. If interest rates suddenly rise by 1.6 percent, the percentage price change of the bonds can be calculated using the bond price formula. The price change formula is given by:

Percentage price change = (-Duration) * Change in yield

Using the formula, we can calculate the percentage price change for Bond X and Bond Z. However, the duration of the bonds is not provided in the question. Duration measures the sensitivity of bond-prices to changes in interest rates. Without the duration information, we cannot accurately calculate the percentage price change.

b. Similarly, if interest rates suddenly fall by 1.6 percent, we would need the duration of the bonds to calculate the percentage price change accurately. Without the duration information, we cannot determine the exact percentage price change.

The conclusion is that without the duration of the bonds, we cannot calculate the percentage price change accurately in response to changes in interest rates. Duration is a crucial factor in determining bond price sensitivity to interest rate movements.

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Related Questions

Chloe enjoys her math classes, and she would like to find a career that will allow her to continue to use her math skills. Which career would be a good fit for her? A. accountant B. purchasing agent C. commercial carpenter D. human resources manager

Answers

Accountant would be a good fit for her

Answer:

Just give

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It cost Levi Jeans $14 to create jeans. The company wishes to mark all jeans up by $42.55. What is the retail price and markup percentage of jeans?

Answers

Answer:

0.32902467 but id move the desimal   so it would be 32$ and  90 cents but u can cut   of the cents sorry i suck at math i tried sorry if this didnt do much

Explanation:

APR, a rate advertised by ___ is typically ___ than APY

A) lenders; higher
B) borrowers; higher
C) borrowers; lower
D) lenders; lower

answer: D

Answers

D is the answer look at this

APR, a rate advertised by lenders is typically lower than APY. The correct answer is D.

What is APR?

APR is an acronym for annual percentage rate, it is considered as a cost of borrowing money which is calculated on a percentage that any individual pay each year on their loan.  It does not only include the rate of interest but also the fees you must pay to obtain the loan.

APY is an acronym for annual percentage yield, which is considered the actual rate of return on the investment after considering the effect of investment returns.

APR is a rate advertised by lenders that is typically lower than APY as the cost of overall borrowing is lower, and the accounts of APR are also lower. If the difference between APR and APY is higher, the frequency with which interest compounds also increases.

Therefore, option D lenders and lower is the appropriate answer.

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Did the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand?It weakened both aggregate demand and the growth of the economy.It occurred without weakening either aggregate demand or the growth of the economy.It occurred without weakening aggregate demand, but did slow down the growth of the economy.It weakened aggregate demand, but did not slow down the growth of the economy.

Answers

Answer:

Option B (It occurred without weakening either aggregate demand or the growth of the economy) is the appropriate choice.

Explanation:

There was a low unemployment rate, increased efficiency as well as higher demand in the US economy throughout 1998 and 2008. In those years, the ICT industry was at its height as well as the GDP growth of the Us economy would have been at its height, beginning between 1998-2001 and lasting until the 2008 subprime mortgage crisis. U.S. aggregate demand has also improved leading to increased job rates including GDP growth of about 4 percent every year and a rise and the per capita income.

Some other options offered are not relevant to something like the situation described. So, the option here is just the best one.

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question 2 the model in question 3 is investigating the determinants of household consumption in south africa. use the eview output below to answer the questions that follows dependent variable: consumption method: least squares date: 11/18/10 time: 00:31 sample: 20052014 included observations: 10 a. detect the main problem on the model (3 marks) b. explain
Question: Question 2 The Model In Question 3 Is Investigating The Determinants Of Household Consumption In South Africa. Use The Eview Output Below To Answer The Questions That Follows Dependent Variable: CONSUMPTION Method: Least Squares Date: 11/18/10 Time: 00:31 Sample: 20052014 Included Observations: 10 A. Detect The Main Problem On The Model (3 Marks) B. Explain

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Aggregate consumption expenditure is considered to be a major variable in determining a country’s growth, and is mostly used in forecasting the economic prospects of a country. Thus, understanding of a country’s consumption behaviour plays a central ...
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Question 2 The model in question 3 is investigating the determinants of household consumption in South Africa. Use the Eview Output below to answer the questions that follows Dependent Variable: CONSUMPTION Method: Least Squares Date: 11/18/10 Time: 00:31 Sample: 20052014 Included observations: 10 a. Detect the main problem on the model (3 Marks) b. Explain the two causes of the problem identified in (a) (6 Marks) c. In detail explain the consequences that are Likely to be experienced if the OLS regression model suffers from such a problem (6 Marks) d. Explain other methods which can be used to detect the problems identified in (a) (5 Marks) e.

Answers

The main problem is not specified in the given question and does not provide sufficient information to determine the main problem. The question does not provide sufficient information to pinpoint the main problem in the model investigating the determinants of household consumption in South Africa.

 

Step 1/3:

The main problem detected in the model investigating the determinants of household consumption in South Africa is not specified in the given question.

Step 2/3:

To accurately identify the main problem in the model investigating the determinants of household consumption in South Africa, it is necessary to analyze the specific details provided in the Eview output. Unfortunately, the question does not provide the required information to determine the main problem. Without understanding the variables, statistical methods, and other relevant factors employed in the model, it is not possible to offer a comprehensive explanation.

Identifying the main problem requires a thorough examination of the model's components, including potential issues related to data quality, model specification, or statistical assumptions. Additionally, understanding the context and dynamics of household consumption in South Africa is crucial for detecting specific challenges that may affect the model's accuracy and reliability. Without this information, it is difficult to provide an in-depth analysis or propose meaningful solutions.

Step 3/3:

The question does not provide sufficient information to pinpoint the main problem in the model investigating the determinants of household consumption in South Africa. It is essential to have access to the specific details of the Eview output, such as the variables, statistical methods, and other relevant factors, in order to accurately detect and explain the main problem.

To gain a deeper understanding of the determinants of household consumption in South Africa, it is recommended to explore research studies, statistical analysis techniques, and economic factors that influence consumption patterns. By delving into the literature and examining related research, one can uncover potential problems and limitations in the model.

Furthermore, understanding the socio-economic context of South Africa is vital for comprehending the unique challenges and dynamics of household consumption in the country. Factors such as income inequality, employment rates, government policies, and cultural influences can significantly impact consumption behavior.

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What do interior designers use CAD to do? Select one task that an interior designer could use CAD for and compare it to how that task could have been done prior to the invention of CAD.

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The majority of designers will utilize AutoCAD to produce floor plans and room mockups for both commercial and residential structures.

The majority will begin with a 2D layout as they collaborate with a customer to plan the overall positioning of important furniture or fixtures. The ability to transform 2D floor plans to 3D with the Room Builder feature is one of the best aspects of software like AutoCAD 2010 for interior designers and space planning, making it simple to show clients exactly how their finished room will look. Although not the only tool used by interior designers for planning, AutoCAD is unquestionably the industry standard. Do you want to know how much money you can make working with interior designers in AutoCAD? The extent of your abilities will determine that, but being able to create striking room designs within the programme will undoubtedly help you to stand out.

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How do banks create money?
a) by issuing loans and opening checking accounts
b) by holding money in their vaults
c) by charging interest
d) by printing it

Answers

C

Banks do not really have any goods to sell, they’re in the business of holding money for others and loaning that money out to others, normally with interest. It is the interest off of loans that normally create income and allow the bank to have a positive cash flow.

The correct answer is option B) by holding money in their vaults.

How does a bank make money?

Banks make money from service charges and fees. These fees vary based on the products, ranging from account fees (monthly maintenance charges, minimum balance fees, overdraft fees, non-sufficient funds (NSF) charges), safe deposit box fees, and late fees.

Where do banks borrow money from?

Banks can borrow from the Fed to meet reserve requirements. The rate charged to banks is the discount rate, which is usually higher than the rate that banks charge each other. Banks can borrow from each other to meet reserve requirements, which are charged at the federal funds rate.

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Help this is super confusing

Help this is super confusing

Answers

Answer: Reasons

Explanation: Crystals are collected for jewelry, sugar, salt, computer chips. So if it shows you all those examples it would be collected for many reasons. I hope this helped!

5. The process of establishing and maintaining contacts with key managers in your own and other organizations, and using those contacts to weave strong relationships that serve as informal development systems is called

Answers

Answer:

networking.

Explanation:

Networking is defined as the process of creating a network of contacts that can be beneficial to an individual's professional life.

This form of relationship is widely used in the professional field, and can confer advantages in helping professional development, obtaining relevant information, the opportunity to get a new job, etc.

It is an interesting way to establish and maintain interpersonal relationships, as long as they are strongly based on ethics, obtaining a solid base of relationships with co-workers will bring significant benefits to an individual's career.

HELP FAST! What is the correct answer?!?!

HELP FAST! What is the correct answer?!?!

Answers

The retailer/store pays the interchange rate.
retailer/store for sure!

A small publishing company is releasing a new book. The production costs will include a one-time fixed cost for editing and an additional cost for each bock printed. The total production cost C (in dollars) is given by the function C=750+18.95N, where N is the number of books. The total revenue eamed (in dollars) from selling the books is given by the function R=34.60 N. Let P be the profit made (in doliars). Write an equation relating P to N. Simplify your answer as much as possible.

Answers

The equation relating profit (P) to the number of books printed (N) is P = 34.60N - 750 - 18.95N.

To determine the equation relating profit (P) to the number of books printed (N), we need to consider the costs and revenue involved in the production and sale of the books. The production cost (C) is given by C = 750 + 18.95N, where 750 represents the one-time fixed cost for editing and 18.95N represents the additional cost for each book printed.

The revenue earned (R) from selling the books is given by R = 34.60N, where 34.60 represents the revenue per book sold.

To calculate the profit (P), we subtract the production cost from the revenue: P = R - C. Substituting the given equations for R and C, we have P = 34.60N - (750 + 18.95N).

Simplifying the equation, we combine like terms: P = 34.60N - 750 - 18.95N. This gives us the final equation relating profit to the number of books printed.

In this equation, the term 34.60N represents the revenue earned from selling the books, while the term 18.95N represents the production cost for printing each book. The constant term -750 represents the fixed cost for editing, which is subtracted from the revenue and production cost.

By using this equation, the small publishing company can calculate the profit they will make based on the number of books they plan to print and sell.

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Using the numerical example in problem 5, assume now that foreign limits immigration, so that only three workers can move three from home. calculate how the movements of these three workers affects the income of five different groups: a. workers who were originally in foreign. b. foreign landowners. c. workers who stay in home . d. home landowners. e. the workers who do move .

Answers

Option (a) workers who were originally in foreign is correct.

The following effect will occur first when only three employees are allowed to go from home to foreign, the number of focus in foreign grows to five as a result: workers who were originally in foreign.

What is  foreign limit immigration?The United States Congress passed the first immigration statute with severe restrictions in 1917. This law, which featured numerous crucial elements that opened the way for the 1924 Act, was made possible by the uncertainty about national security created during World War I.According to several visa categories under the INA, the United States may issue up to 675,000 permanent immigrant visas annually. The INA places no cap on the annual admission of spouses, parents, and children under 21 who are citizens of the United States, in addition to the 675,000 visas already allotted for that purpose.Here when foreign bans immigration, there is free movement of labor from home so that only three workers can move from home to their. Module labor productivity declines The true wage Falls spans the age range of 8 to 16.

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What house designs are eco friendly?

Answers

Answer:

Cob.

Straw Bale. ...

Underground Homes. ...

Rammed Earth Construction. ...

Earth Sheltered Homes.

Solar Roofing. ...

Bamboo Flooring. ...

Cork Flooring.

Explanation:

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From the perspective of the ____, the price at which a unit is exchange is the marginal cost of that unit

Answers

Answer:

From the perspective of the SELLER, the price at which a unit is exchange is the marginal cost of that unit

Each of the following is an example of corporate governance except : a. Adding non-executives to the board of directors b. Properly disclosing financial information C. Ignoring shareholders' rights d. Controlling executives' salaries

Answers

Answer:

C. Ignoring shareholders' rights

Explanation:

Corporate governance refers to the way corporate companies are controlled and directed. The board of directors provides corporate governance in a company. Good corporate governance establishes a  framework that protects shareholders' rights in the company.

Some of the shareholders' rights include

1.  Right to vote

2. Right to transfer ownership

3. Right to dividends

4. Right to inspect corporate documents

The board of directors must ensure fair treatment of all shareholders, including the minority. The board has to put in place mechanisms that address shareholders' concerns and offers redress when their rights are violated.

A good time to observe the dress code to prepare for your first day is during
a your interview
b. your second day
your Orientation
d the weekend

Answers

a, your interview :)

A good time to observe the dress code to prepare for your first day is during an interview. Thus, option A is correct.

What is interview?

A planned interaction in which one party asks questions and the other responses is known as an interview. A one-on-one conversation between an interviewer and an interviewee is referred to as a "interview" in everyday speech.

In general, the individual should dress professionally or in business clothes for a job interview. The interview is a dialogue in which you and your prospective employer exchange information.

Therefore, it can be concluded that During an interview is a wonderful opportunity to review the dress code in order to get ready for your first day. Therefore, choice A is correct.

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50 POINTS

Sayid is a corrections officer in county jail. What might be one task that Sayid performs as a part of his job?
A. responding to a house fire across the country
B. accompanying inmates to and from court
C. investigating a rash of bike thefts
D. cleaning graffiti from the local skate park

Answers

B. she works at the jail and not like a detective like in C. where she's investigating there.. so B.

Answer:

Sayid is a corrections officer in county jail. What might be one task that Sayid performs as a part of his job?

B. accompanying inmates to and from court

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The interest rate a company pays on loans depends in part on
A. its current ratio, debt-asset ratio, and operating profit as a percentage of global sales revenues.
B. its credit rating and the length of the term of the loan (1-year versus 5-year versus 10-year)--the longer the payback period, the higher the interest rate.
C. its debt-equity ratio and interest coverage ratio in the prior year.
D. whether its credit rating is above or below a B rating--all loans made to companies with a B or lower rating are made at prime plus 3.5%, while loans to companies with a credit rating of B+ or above are made at prime plus 1.5% [prime is defined as the "base" or "lowest" interest rate that creditors charge very low-risk customers who put up 200% or more collateral]
E. the extent to which its default risk ratio is above/below 3.0.

Answers

The interest rate a company pays on loans depends in part on credit rating and the length of the term of the loan the longer the payback period, the higher the interest rate.

Option B is correct.

What does the term "interest rate" mean?

An interest rate tells you how much borrowing costs and how much saving pays off. As a result, if you're a borrower, the interest rate is the percentage of the total loan amount that you pay to borrow money.

What kinds of interest rates exist?

The three main types of interest rates are as follows: the effective rate, the real interest rate, and the nominal interest rate. The stated rate at which interest payments are calculated is what is referred to as the nominal interest on an investment or loan.

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Take a law that the city/state passed and talk about its history of it and how it came into being and then debate both sides of that bill supporter/non-supporters. Use this outline for the topic: Homeless In venice beach

Answers

Venice Beach's homeless crisis law was enacted to address the issue of homelessness in the area. Its supporters believe it provides a solution while non-supporters argue that it infringes on the rights of the homeless.

The Venice Beach Homeless Crisis Law was enacted in 2020 to address the increasing number of homeless individuals in the area. It seeks to regulate camping and storage of personal property on sidewalks and streets. The bill's supporters argue that it provides a solution to the growing crisis by promoting public health, safety, and cleanliness while also protecting the rights of residents.

On the other hand, non-supporters argue that the law infringes on the rights of homeless individuals. They claim that the law will criminalize homelessness and expose them to fines and penalties that they cannot afford. Non-supporters further argue that the bill does not provide a long-term solution to the issue of homelessness. Rather, it only addresses the symptoms and does not address the root cause of the problem.

In conclusion, the Venice Beach Homeless Crisis Law was passed to address the issue of homelessness in the area. While supporters believe it is an effective solution, non-supporters argue that it infringes on the rights of the homeless and does not provide a long-term solution to the issue.

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The current price of a German bond is €98 and the current exchange rate is €1 = $1. 5. The bond pays a coupon of €10 per period. ‘You expect the bond price to increase to €105 at the end of the period. Also, you expect the exchange rate to become €1= $1. 15 at the end of the period. What is the expected dollar rate of return on the German bond for the period?

Answers

The expected dollar rate of return on the German bond for the period is 16.15%.

Expected capital gain = €105 - €98 = €7

Expected exchange rate = €1 = $1.15

Expected dollar bond price = €105 × ($1.15/€1) = $120.75

Expected coupon payment = €10 × ($1.5/€1) = $15

Initial dollar bond price = €98 × ($1.5/€1) = $147

Expected dollar rate of return = ($15 + €7 × ($1.15/€1)) / $147 = 16.15%.

A bond refers to a debt security issued by a corporation, government or other organization, which serves as a means of borrowing funds from investors. When an entity issues a bond, it is essentially borrowing money from investors who buy the bond, and promising to pay them back with interest at a predetermined time in the future.

Bonds are generally considered to be less risky than stocks because they provide a fixed income stream and a predetermined repayment date. The interest rate on a bond is called the coupon rate and is typically fixed for the life of the bond. Bonds are usually bought and sold on the bond market, which is a separate market from the stock market. Investors can use bonds to diversify their portfolios and reduce their overall risk because the returns on bonds tend to be less volatile than stocks.

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A Pew Research Center study found that 89 percent of cell phone owners had used their phones during the last social gathering they attended, but they weren't happy about it; 82 percent of respondents said their use of smartphones in social settings hurt the conversation. Do you split your attention between your screen and face-to-face conversations? Do you believe it's possible to be sufficiently present while texting?

Answers

Yes, it is easy to fall into the trap of splitting our attention between our screens and face-to-face conversations, but we must be mindful of the negative impact this can have on our social interactions.

The results of the Pew Research Center study are not surprising, as many people today seem to be attached to their smartphones. While cell phone use may be convenient, it can also lead to a breakdown in face-to-face communication and hinder social interaction. Personally, I do my best to avoid using my phone during social gatherings and focus on engaging with those around me.

However, I do understand that there are certain situations where texting or checking notifications may be necessary, such as emergencies or important messages. It's possible to balance technology use and social interaction, but it requires mindfulness and consideration for those around us

Therefore, by making a conscious effort to limit our phone use in social settings, we can improve the quality of our face-to-face interactions and strengthen our relationships with others.

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Alex wants to pay off his credit card balance before he gets married. he decides to take the $2,340 out of his savings and apply it to his credit card debt of $6,590. the credit card has an apr of 16.5%. what will alex's minimum monthly credit card payment be in order to pay off his debt in 14 months?

Answers

Based on the amount of credit card debt that Alex has and the APR on the credit card, his minimum payment to pay off his debt in 14 months will be $335.80 per month.

How much should Alex pay?

The balance on the credit card after Alex applies some of his savings to the debt is:

= 6,590 - 2,340

= $4,250

The minimum payment can be found using a credit card calculator where you input the balance above, the APR, the payback period of 14 months.

The minimum amount is:

= $335.80 per month

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Answer:

$335.80 x month

Explanation:

if oil prices decline, the short-run aggregate supply curve shifts _____ and output supplied will _____.

Answers

If oil prices decline, the short-run aggregate supply curve shifts to the right, and output supplied will increase.

This is because lower oil prices lower the production costs of firms that rely heavily on oil as an input, such as transportation and manufacturing industries. As a result, firms can produce and supply more goods and services at lower costs, leading to an increase in output supplied in the short run.

The shift in the short-run aggregate supply curve to the right also leads to lower prices for goods and services, as firms are able to produce more efficiently. However, in the long run, the increased output supplied may lead to higher prices if the increase in demand exceeds the increase in aggregate supply.

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The assumption of asymmetric information means that:.

Answers

It means that one party in a transaction is in possession of more information than the other.

can i doit without pay

Answers

Answer:

what?

Explanation:

Henry recently set up a retail store in his hometown. He studied the pattern that other storeowners followed in obtaining new customers. All their current customers had referred the store to their friends and family. Their awareness basically spread through word-of-mouth. Henry knew that his store offered the same quality as the other stores did. His store was also on the same street as the other retail stores. Given the setting, the other storeowners were already charging their customers the bare minimum in order to remain competitive. Which P of marketing should Henry concentrate on to distinguish his retail store?

Answers

Answer :

Promotion is the P of marketing Henry may focus on to differentiate his retail shop.

Explanation :

In marketing, there are seven (7) P's that make up the marketing mix. The four (4) most important P's in the marketing mix are P-product, P-price, and P-place. P-promotion According to the text, Henry cannot utilize the first P, which stands for product, because he is aware that his store offers the same quality as the others.

Henry can't utilize the second P, Price, as a marketing technique since he knows that other business owners are already charging the bare minimum to stay competitive. Henry can't utilize the third P, which stands for Place, because his business is on the same street as the other retail stores, and he can't improve on that. Henry's lone marketing tool for beating the competition is the fourth P, which stands for Promotion.

This is because word-of-mouth knowledge established by other business owners is insufficient to create widespread awareness; word-of-mouth can only reach friends and relatives. As a result, the P in marketing that Henry may use is Promotion. He may achieve this by creating global awareness through advertisements on television, radio, social media, printing handbills, and sales promotions such as lottery draws, festive sales, clearance discounts, and offering consumers bonuses such as the buy three, get one free promotion.

How do management accountants help managers make business decisions?

Answers

Answer:

Relevant costs analysis

Audience targeting

Make or buy evaluations

Define Budgets

Explanation:

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A client who believes that current economic events will make market conditions more stable over the upcoming 30 days could profit by:

Answers

Answer: b. selling VIX calls

Explanation:

The client could make some money selling VIX calls. Call options give the holder the right to buy an underlying asset at a set price in future and they will do so if the market price of the underlying asset increases past the call price of the asset (exercise price).

If the client expects that market conditions will be stable then an increase in stock price is not expected. They can sell calls and make money from the premium they will charge for the calls knowing that they would not have to sell any stock to the holder as the value will not appreciate.

Which element of design can be used to create emphasis or de-emphasis on a garment? a space b shape c line d texture please answer this question before moving on.

Answers

Emphasis is the phase of the format that catches the viewer's attention. Usually the artist will make one area stand out by using contrasting it with other areas.

The location should be one-of-a-kind in size, color, texture, shape, etc. Movement is the course the viewer's eye takes through the work of art, often to focal areas.

How do you create emphasis in design?

Three factors of art: color, value, and texture, are beneficial in creating emphasis through contrast. Using texture in solely one spot or placing a light object in an otherwise dark environment will attract the interest of the viewer.

What system is used for emphasis?

Still, specially for academic writing, italics or underlining is the favored way to emphasize phrases or phrases when necessary. Writers generally choose one or the different approach and use it constantly throughout an person essay. In the final, posted version of an article or book, italics are generally used.

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The public power company is an example of which market structure?
A. Perfect competition
B. Monopolistic competition
C. Oligopoly
D. Monopoly

Answers

Answer:

D. Monopoly

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. Thus, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.

Hence, the public power company is an example of a monopoly because they serve as the only power utility provider to the public.

Additionally, a public power company refers to a company that provides power (electricity) utility to the general public of a society.  

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