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1 year ago

The situation where the buying power of money in terms of goods and services increases is called:_____

Business

1 answer:

Alla [95]1 year ago

6 0

The situation where the buying power of money in terms of goods and services increases is called <u>deflation</u>

In economics, deflation is a general decline in the price level of goods and services. Deflation occurs when inflation falls below 0% (negative inflation). Inflation depreciates a currency over time, while sudden deflation increases it. As a result, more goods and services can be purchased with the same currency than before. Deflation is different from disinflation, which is a slowdown in the rate of inflation. H. Inflation is declining but still positive.

Economists generally consider sudden deflationary shocks to be a problem in the modern economy. This is because the real value of debt increases, especially if deflation occurs unexpectedly. Deflation can also exacerbate the recession and lead to a deflationary spiral.

Learn more about deflation here: brainly.com/question/13562161

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Rubbermaid Plastics plans to purchase a rectilinear robot for pulling parts from an injection molding machine. Because of the ro

liubo4ka [24]

Answer:

The present worth of the cost savings if the company uses an interest rate of 15% per year on such investments is $442108.5079.

Explanation:

Present Worth = $100,000/(1 + 15%) + $100,000/(1 + 15%)^2 + $100,000/(1 + 15%)^3 + $200,000/(1 + 15%)^4 + $200,000/(1 + 15%)^5

= $442108.5079

Therefore, the present worth of the cost savings if the company uses an interest rate of 15% per year on such investments is $442108.5079.

3 0

3 years ago

Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of $1,000. Currently, the bond can be

Nataly [62]

Answer:

YTM = 8.93%

YTC = 8.47%

Explanation:

$P = \frac{C}{2} \times\frac{1-(1+YTC/2)^{-2t} }{YTC/2} + \frac{CP}{(1+YTC/2)^{2t}}$

The first part is the present value of the coupon payment until the bond is called.

The second is the present value of the called amount

P = market price value = 1,200

C = annual coupon payment = 1,000 x 12% 120

C/2 = 60

CP = called value = 1,060

t = time = 6 years

$P = 60 \times\frac{1-(1+YTC/2)^{-2\times 6} }{YTC/2} + \frac{1,060}{(1+YTC/2)^{2\times 6}}$

Using Financial calculator we get the YTC

8.467835879%

$P = 60 \times\frac{1-(1+YTM/2)^{-2\times 10} }{YTM/2} + \frac{1,000}{(1+YTM/2)^{2\times 10}}$

The first part is the present value of the coupon payment until manurity

The second is the present value of the redeem value at maturity

P = market price value = 1,200

C = coupon payment = 1,000 x 12%/2 = 60

C/2 = 60

F = face value = 1,060

t = time = 10 years

Using Financial calculator we get the YTM

8.9337714%

4 0

3 years ago

Which of the following activities are prohibited by the Clayton Act when they lead to less competition? Each of these answers is

mariarad [96]

Answer: All of the Above

Explanation:

The Clayton Act of 1914 was passed to curb unfair business practices as well as to protect the rights of labour.

Some practices that were prohibited when they led to less competition include,

- A firm acquiring a major percentage of the stocks of a competing firm because this could signify an amalgamation of efforts on the part of both firms and they could therefore have some control over Pricing.

-A director from one business sitting on the board of a competing firm because this could lead to cooperating or Corperate espionage.

- A buyer is forced to buy multiple products from a producer in order to get a desired product is expressly forbidden.

5 0

3 years ago

vSelected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: Sales $ 2 comma 000 comma 000 Oper

ioda

Answer:

Capital turnover = 2.5 times

Explanation:

given data

Sales = $2,000,000

Operating income = $400,000

Total assets = $800,000

Current liabilities = $120,000

Target rate of return = 13%

Weighted average cost of capital = 6%

to find out

Portland Porcelain Works Coffee Mug Division capital turnover

solution

we get here Portland Porcelain Works Coffee Mug Division capital turnover that is find here by dividing sales by total assets

Capital turnover = $\frac{sales}{total\ assets}$ ......................1

put here value

Capital turnover = $\frac{2,000,000}{800,000}$

Capital turnover = 2.5 times

5 0

2 years ago

EB1.

aleksandr82 [10.1K]

Answer:

$110

Explanation:

The contribution margin per unit refers to the revenue available per unit to pay for fixed costs and profits.

The formula for contribution margin is selling price per minus variable costs per unit.

, i.e., contribution margin = selling price -variable costs

=$150-$40

=$110

8 0

3 years ago