Answer:
b. could be low because people might adjust their expectations quickly if they found anti-inflation policy credible
Explanation:
In the given situation, it is mentioned that the rational expectations proponets said that the sacrified ratio would be lesser as the people wants to adjust their expectations in a fastest way in the case when they found that the anti-inflation policy is credible
Therefore as per the given situation, the option b is correct
Answer:
Cash flow from financing $34,100
Explanation:
The amount of financing cash flows that Smith would report in year 2021 is as follows:
Issuance of stock by Smith law firm $12,000
Loan from local bank $24,000
Dividends paid to stockholders ($1,900)
Cash flow from financing $34,100
Answer: D
Explanation:
Competing on cost is based on achieving maximum value as perceived by the customer.
Answer:
The Future value at year time is $4,260
Explanation:
The future value at the end of the year one can be found by using the compounding formula which is as under:
Future Value = Present Value * (1 +r)^n
Future Value = $4,000 * (1.065)^ 1 = $4,260
