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siniylev [52]
2 years ago
10

Suppose a severe drought results in a poor harvest and leads to higher overall food prices. This situation is a _____ shock and

is likely to lead to _____ inflation.
Business
1 answer:
Scrat [10]2 years ago
3 0

Suppose a severe drought results in a poor harvest and leads to higher overall food prices. This situation is a "supply" shock and is likely to lead to "cost-push" inflation.

<h3>What is cost-push inflation?</h3>

Cost-push inflation happens when a good or service's supply changes but its demand remains the same. Cost push is one of the two causes of inflation. The other is demand-pull inflation.

The causes of cost-push inflation are-

The most frequent causes of it include

  • monopolies,
  • wage increases,
  • natural disasters,
  • the introduction of regulations, and
  • changes in exchange rates.

In this situation, the supply levels fall down due to loss of harvest and demand remains the same. This will drive up the prices, leading to inflation.

Learn more about inflation, here

brainly.com/question/1082634

#SPJ4

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Answer:

$42,500 payments at the beginning of each of the next twenty-five years. Assuming Wither Spoon Company's borrowing costs are 8% per annum

Explanation:

Assuming Wither Spoon Company's borrowing costs are 8% per annum

th e option that is least costly to the company is Location C because it only requires $42,500 payments at the beginning of each of the next twenty-five years.

Hence Location A which may be purchased immediately for $500,000 cash and Location B which may be acquired with an immediate down payment of $100,000 and annual payments of $39,900 at the end of each of the next twenty years are not the best option for the company to choose from which therefore makes LOCATION C the best option for Wither Spoon Company because it save cost as as well the least costly to the company.

6 0
3 years ago
Prepare various types of budgets
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I’m happy to answer this question if you can give me more detail.
6 0
3 years ago
No matter what way you approach raising money for your business, you will need a ________. written business plan family investme
Alborosie

Answer:

The correct answer is letter "A": written business plan.

Explanation:

A business plan outlines the objectives a company wants to achieve and the strategies it decided to use for such purpose. Business plans are set after the company has identified and recorded the core competencies and resources it has to make the project become reality. Business plans are useful to establish the steps an organization should follow to accomplish every firm's ultimate goal: <em>generate profit</em>.

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3 years ago
Strieby Corp. operates a business with three separate entities as subsidiaries that operate as a unitary business: Matty Corp.,
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Answer:

Those that will be required to file a California return are; Matty,

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3 years ago
True or False: Computing interest using the sum-of-the-digits method allocates more interest at the beginning of a loan than at
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Answer:

True

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You are the lessor and you will lease a machine during 4 years. The lease requires 4 equal payments of $100,000 at the beginning of the year. After the lease, the asset's salvage value = $0.

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Using the sum-of-the-digits method, you will allocate interest as follows:

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The largest portion of interests is allocated during the beginning of the loan.

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