Answer:
It distorts relative prices, causing a misallocation of resources.
Explanation: Inflation is an economic term used to describe a situation in a country's market when there is a sudden rise in commodities sold in the market. Inflation can be as a result of an increase in demand of commodities sold in the market.
It has a negative effect, when the prices are distorted and the purchasing power is not properly allocated to the buyers.
It is referred to as a life savings account<span />
Answer:
C) The invisible hand
Explanation:
Daniel here seeking to produce and increase his welfare is "led by an invisible hand" to negotiate with his suppliers and to sell goods to his neighbors in a way that everybody is better off as a result from these transactions.
This is also a clear example to what Adam Smith was referring to the invisible hand:
"in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. " Adam Smith, The Wealth of Nations, Book 4, Chapter 2
Non of the above all of the others take from you or make problems.
Answer:
5.52%
Explanation:
The coupon rate is given below:
Given that
Future value = $1,000
Present value = $1,055
NPEr = 18 × 2 = 36
PMT = $1,000 × 6% ÷ 2 = $30
The formula is shown below:
=RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the rate is
= 2.76% × 2
= 5.52%
