Answer:
c. the GDP deflator and the consumer price index.
Explanation:
Two alternative measures of the overall level of prices are the GDP deflator and the consumer price index.
The GDP deflator can be defined as a measure of the changes in prices for all of the finished goods and services produced domestically in an economy in a particular period of time, usually a year. This simply means that, the gross domestic product deflator measures the inflation in an economy.
Consumer price index (CPI) can be defined as a measure of the aggregate or average changes in price level of a weighted market basket of finished goods and services that consumers purchased over a specific period of time. The CPI is also a measure of the inflation in an economy over a specific period of time.
Answer:
Using
standard discounted cash flow analysis where we try to equate the PV of annuity of additional income with the PV of the money that is to be spend on additional education. There are three scenarios, which are tabulated as follows. It appears that interest rate of 5% or 6% is the one which makes it a good decision to go for higher educaiton. Rates higher than this aren't helpful.
Explanation:
The demand for silver decreases, other things equal, when the gold market is suddenly expected to boom.
This is the logical consequence of the fact that silver and gold are used as investment commodities to preserve the value of your assets. If market predicts a quick increase in the prices of gold, the market will sell its assets in silver to purchase assets in gold to make a greater profit.
Answer:
A. The crossover point in units is 9000 units
B. Alternate B or Proposal B should be chosen
Explanation:
a.
Let x be the number of units.
The profit equation for option 1 can be written as (20-11)x - 62000
The profit equation for option 2 can be written as (20-14)x - 35000
The crossover point is where both optons yield equal profit thus equation 1 = equation 2.
(20-11)x - 62000 = (20-14)x - 35000
9x - 62000 = 6x - 35000
9x - 6x = 62000 - 35000
3x = 27000
x = 27000 / 3
x = 9000 units
b.
At 8300units,
Profit from proposal A is = 9(8300) - 62000 = 12700
Profit from proposal B is = 6(8300) - 35000 = 14800
Thus option B is more profitable at this unit.
5 steps are taken to manage risk. This is referred to as the “Risk Management Process.”
