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Dafna1 [17]
3 years ago
8

A newspaper article once reported that the u.s. economy was experiencing a low rate of inflation. it said that "low inflation ha

s a downside: 45 million recipients of social security and other benefits will see their checks go up by just 2.8 percent next year."
a. why would policymakers link increases in social security and other benefits to inflation?
b. is the small increase in benefits a "downside" of low inflation, as the article suggests? why or why not?
Business
1 answer:
noname [10]3 years ago
7 0
I think policymakers would link social security payments to inflation to help the recipients with the increased cost of living due to inflation of prices also. I don't think small increases due to a low rate of inflation is a downside because the low rate of inflation means goods and services will not increase much in price so will still be relatively affordable. 
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bulgar [2K]

The most useful way of standardizing financial statements is to choose a _<u>base year</u>,_ and then express each item in the period under review relative to the _amounts____ in the base year.

<h3>What are comparative financial statements?</h3>

Comparative financial statements compare a particular financial statement with previous statements. Previous financial statements are presented in side-by-side columns with the latest figures. With this, investors are able to track a company's progress over some periods and compare the company's financial results and performance with its industry competitors.

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Learn more about comparative financial statements and financial ratios here: brainly.com/question/9091091

4 0
2 years ago
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.9 percent indefinitely
yKpoI14uk [10]

Answer:

$48.2

Explanation:

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= 3.9/100

= 0.039

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= 0.117

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= 3.62(1.039)/0.078

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5 0
3 years ago
Suppose a firm estimates its WACC to be 10%. Should the WACC be used to evaluate all of its potential projects, even if they var
Mademuasel [1]

Answer:

The WACC will be 10% for average risk

below when the risk is low

and above 10% when the risk is higher than average

as the cost of capital (required return from the stockholders) will increase pushing the WACC higher

Explanation:

As the WACC is composed by the cost of debt and the cost of equity a higher risk will require a better return for the investor thus, the equity proportion that determinates the WACC will change along the project risk.

6 0
3 years ago
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tino4ka555 [31]

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They are useful in referencing a variable from which the data or values that are contained in that particular variable can be easily retrieved. For example a variable can be indicated by an identifier totalAmount in which the value stored  is 56000. The starting name of the variable should be given in smaller case letter and second name should be in capital letter.  For instance if you are going to store the value 45 in the variable amountoftime then the variable name should be given as amountOfTime.

4 0
3 years ago
What affects the egg coagulation in custards and creams!
Lapatulllka [165]
What affects the egg coagulation in custards and creams!
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8 0
2 years ago
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