Answer:
This statement is describing demand pull inflation.
Explanation:
If the aggregate demand increases the demand curve will shift rightwards. But if the increase in demand is higher than increase in supply this will lead to an increase in the price level. The output level will increase but constant increase in price will cause inflationary pressures. This is referred toa as demand-side inflation.
Answer:
16.96%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 5.8% + 1.8 × (12% - 5.8%)
= 5.8% + 1.8 × 6.2%
= 5.8% + 11.16%
= 16.96%
The (Market rate of return - Risk-free rate of return) is also called market risk premium
Answer:
Brand equity, like that enjoyed by coca-cola, results from favorable consumer experience with a product.
Explanation:
Brand equity is a term that describes the value of a brand based on the reputation of its products in the market. As in the case of the coca-cola brand equity is achieved because the product is liked by a huge number of customers.
Brand equity also has a wide effect on the financial status of a company. The product that is more valued will be sold more. Even increasing the price for that product wouldn't matter as the brand would already have set its name in the market.
Answer:
<u>b. exports > imports.</u>
Explanation:
Note that when a country's exports are less than imports of the country that is a case of unfavorable balance of trade.
So Mercantilists often aim to see excess of exports over imports which they believe means added income (exports) and less of expenditure ( imports).
Remember the balance of trade (BOT) looks at foreign exchange between countries.
