Answer:
D - Hold less money
Explanation:
Inflation is the persistent increase in the general prices of goods and services over a period of time.
During inflation period, nobody wants to hold more of cash because the value of money gets depreciated as inflation increases (prices of goods increase).
For example, shoe-leather costs increases when there is an increase in inflation and it makes more economic sense to purchase shoe-leather as it preserves the value of money.
Answer:
D. The cost of living in the country is lower than that of France
Explanation:
PPP or Purchasing Power Parity is a measure of the cost of living in different countries. When GDP Per Capita is computed accounting for PPP, significant differences can show up between this measure and Nominal GDP Per Capita, this is because of differences in the cost of living among countries.
If the GDP Per Capita Nominal of a country is lower than that of France, it means that measured by US Dollars, the other country produces less output per person than France. However, if the GDP Per Capita PPP of the same country is higher than that of France, it means that even if output is less, people in the other country can buy more things with less income than people in France. (Remember than when calculating GDP, output is the same as income).
<span>This is known as the law of demand. As price of a product rises, the quantity demanded decreases. Conversely, if the price of a good or service decreases, then the quantity demanded will rise. When producers raise prices of their goods or services, consumers may find other products, called substitute goods to use in place of the normal goods.</span>
Answer:
Travis will have <u>$23,122.59 </u>in his account at the end of seven years
Explanation:
Future value is the compounded value calculated using a specific time and specific rate too.
To calculate the balance after seven years use the following formula
Future value = Present value x ( 1 + periodic interest rate )^numbers of periods
Where
Future value = Balance after 7 years = ?
Periodic interest rate = 4% x 3/12 = 1%
Numbers of periods = 7 years x 12/3 = 28 periods
Placing values in the formula
Balance after 7 years = $17,500 x ( 1 + 1% )^28
Balance after 7 years = $23,122.59
Answer:
True.
Explanation:
It is a true statement.
The firm economic result that is, financial performance depends upon various factors that includes external forces also.
Further, to remain in industry ( or for stable growth ), the firm have to synchronize their activities with the environment.
The question specifies economic environment that relatively impact the firm. So , this statement is true.
