Answer:
Inflation rate= 0.03 = 3%
Explanation:
Giving the following information:
Nominal interest rate= 0.05
Real interest rate= 0.02
<u>To calculate the inflation rate, we need to use the following formula:</u>
Real interest rate= nominal interest rate - inflation rate
Inflation rate= nominal interest rate - real interest rate
Inflation rate= 0.05 - 0.02
Inflation rate= 0.03 = 3%
a. 50 cents
Contribution margin per unit is price per unit- variable cost per unit
1.75 - ($50,000/40,000 units)
1.75 - 1.25 = $ .50
b. $8750
Margin of safety is the expected sales - break even sales
(45,000 units * $1.75 per unit) - (40,000 *1.75)
78,750 - 70,000 = $8750
Answer:
Answers a. and b. are both correct which shows the advantages of short-term financing (as compared to long-term financing).
Explanation:
The short term financing have includes less compliance, less interest rate, contain lesser amount, speedy transactions ,and lesser time period whereas the long term financing includes more compliance, large amounts, large time period.
Thus, a. and b. are both correct which shows the advantages of short-term financing (as compared to long-term financing)
Answer-
What goods and services should be produced?
How should they be made?
Who consumes these goods and services?
Answer,
World Bank and International Monetary Fund.
Explanation,
World Bank is an organization with 186 member countries.It provides monetary and technical support to developing countries.International Monetary Fund has 186 member countries .Its purpose is to promote financial responsibility,prevent and solve economic crises ,encourage growth.It halso helps to eradicate poverty by encouraging countries to adopt responsible economic policies.It lends money to developing countries and provide training such as banking regulations.
