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1 year ago

An increase in the expected inflation rate, other things remaining the same?

Business

1 answer:

NikAS [45]1 year ago

5 0

An increase in the expected inflation rate shifts the short-run Phillips curve upward.

Inflation is the rate of increase in prices over a period of time. Inflation is usually a broad measure, such as a general rise in prices or an increase in the cost of living in a country.

US annual inflation accelerated to 9.1% in June 2022, from 8.6% in May to his highest since November 1981, beating market expectations of 8.8%.

Although high inflation is generally viewed as detrimental, some economists believe low inflation could boost economic growth. The opposite of inflation is deflation, where prices tend to fall. The Federal Reserve is targeting 2% inflation based on the Consumer Price Index (CPI).

Learn more about the inflation rate here: brainly.com/question/1100560

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Curly just graduated from State U and has three job offers: teaching at a prestigious private high school nine months a year wit

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The annual salary for each of these offers is probably:

lowest at the high school

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highest at the investment firm.

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2 years ago

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Give the meaning and nature of Foreign direct Investmen.

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foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. ... However, FDIs are distinguished from portfolio investments in which an investor merely purchases equities of foreign-based companies

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3 years ago

We typically hear of the gains from trade coming through specialization wherein each nation produces more of and exports that go

Brut [27]

Answer:

Generally theoretical models work only in theory. E.g. perfect competition models exist in theory but no market is really a perfect competition market.

The Ricardian model or the H-O model, or other trade models make the mistake of assuming that resources can be allocated at will and almost immediately, e.g. a fisherman can immediately become an engineer and start developing apps. Or a farmer that produces corn or rye (very popular examples) can suddenly start working at a factory producing bluejeans.

In real life, it doesn't happen. Also, trade models never consider natural trade barriers and extra costs related to trade. E.g. it is not the same to sell $10,000 worth of corn (you need a very large truck) than selling $10,000 worth of jeans (all you need is a small delivery van). In real life, trade is not simple, it is actually extremely complicated.

E.g. everyone knows that manufacturing goods in America is not efficient, at best companies can be less inefficient, but no manufacturing company in America is really efficient if we compare them to foreign companies. Even people who work in manufacturing industries know this, but they want to continue working in them. They want the companies to keep producing in America and they want to keep their jobs. Not everyone in America has a college degree in computer programming, finances, is able to design robots, or is a doctor, etc.

In real life, efficient industries have to exist alongside inefficient industries, and the whole economy suffers from it. But it is unavoidable. In the long run, the economy will eventually shift resources to more efficient industries, but it takes a long time, and a lot of people and companies will be against it. E.g. every year there are less shoe manufacturers in America, and eventually sometime in the future there will be none.

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3 years ago

Condensed financial data of Windsor, Inc. follow. Windsor, Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $56

Solnce55 [7]

Answer:

Windsor, Inc.

Statement of Cash Flows

December 31, 2022

Cash flow from operating activities

Net income $108,206

Adjustments to net income $19,005

Depreciation expense $32,550
Loss on disposal of assets $5,250
Increase in prepaid expenses ($1,680)
Increase in accounts payable $24,290
Increase in accounts receivable ($34,860)
Increase in inventory ($6,755)
Decrease in accrued expenses payable ($3,150)

Total cash flow from operating activities $123,851

Cash flow from investing activities

Increase in long term investments ($20,300)

Purchase in new plant assets ($70,000)

Proceeds from disposal of assets $1,050

Total cash flow from investing activities ($89,250)

Cash flow from financing activities

Issuance of common stocks $31,500

Payment of bonds payable ($25,200)

Dividends paid ($18,221)

Total cash flow from financing activities ($11,921)

Total increase in cash $22,680

Cash balance December 31, 2021 $33,880

Cash balance December 31, 2022 $56,560

Explanation:

2022 2021

Cash $56,560 $33,880 +22,680

Accounts receivable 61,460 26,600 +34,860

Inventory 78,750 71,995 +6,755

Prepaid expenses 19,880 18,200 +1,680

Long-term investments 96,600 76,300 +20,300

Plant assets 199,500 169,750 +29,750

Accumulated depreciation (35,000) (36,400) -1,400

Total $477,750 $360,325

Liabilities and Stockholders' Equity

Accounts payable $71,400 47,110 +24,290

Accrued expenses payable 11,550 14,700 -3,150

Bonds payable 77,000 102,200 -25,200

Common stock 154,000 122,500 +31,500

Retained earnings 163,800 73,815 +89,985

Total $477,750 $360,325

Depreciation expense 32,550

Interest expense 3,311

Loss on disposal of plant assets 5,250

Net income $108,206

cash dividend of $18,221

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3 years ago

___ comes from increases in the money supply.

vagabundo [1.1K]

Answer:

Consumer Price Index (CPI)

Explanation:

1- By definition CPI is the weighted average of a consumer's basket volume for any purchase service or good. When money supply increases, GDP increases, and the spending of a customer increases. Hence resulted in increased CPI.

2- Interest rate decreases when money supply increases

3- Inflation is by definition a steady increase in the money supply if a country. So one can be replaced by another. Inflation does not come from money supply increase, it is in fact money supply increase

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2 years ago

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