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Answer:
(C) The real cost is decreasing.
Explanation:
1 + real rate = (1 + nominal rate)/(1+ inflation)
So, with existence of inflation, real rate cost will be decreasing after each period. After each period, it will be found out by dividing with inflation rate in the way shown above and added multiplicatively.
Answer:
1. An Australian company buys steel from a US Firm
Account: Current Account
Direction of Flow: Payment to foreigners
2. The federal reserve buys $252 billion worth euros
Account: Financial Account
Direction of Flow: Payment to foreigner
3. Profit earned by a US based mining company operating in Mexico
Account: Current account
Direction of Flow: Payment from foreigners
4. An English company buy a US confectionary manufacturer
Account: Financial Account
Direction of Flow: Payment from Foreigners
Answer:
$1,260,000
Explanation:
Property Dividend is declared on 25th May, The net effect on this property dividend on retained earning is reduction of $1260000.
Answer:
An opportunity costs is the loss of the best available option after selecting one alternative
Explanation:
The oppoortunity costs between going to the cinema and to teather will be the cinema if you chose to go tto the theater and the teather if you chose to go to the cinema.