Describe how the risk premium on corporate securities

Describe how the risk premium on corporate securities

1. Describe how the risk premium on corporate securities affects the relationship between the savings rate and the rate of consumption.2. Determine whether or not a family’s sources and uses of funds can be unequal according to economic market theory? Why or why not?3. Determine the factors and changes in macroeconomic assumptions that can affect the present value of consumption in the multiyear model.4. Evaluate which of these factors is the most important, and then state why.


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