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boyakko [2]
3 years ago
5

You and a friend are debating the merits of using monetary policy during a severe recession. Your friend says that the central b

ank needs to lower interest rates all the way down to zero. According to​ him, zero nominal interest rates will boost lending and​ investment; consumers and firms will surely borrow and spend when interest rates are zero. Given that inflation in your country is currently 3​ percent, would you agree with his​ reasoning? Explain your answer.
Business
1 answer:
Gala2k [10]3 years ago
7 0

Answer:

The correct answer is "yes, I agree with his reasoning"

Explanation:

Zero nominal interest rate joined with a three percent inflation rate yields a negative connotation for the real​ rate, which is the rate that is important for investment decisiveness.

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According to the principle of comparative advantage,
Licemer1 [7]

Answer:

D. countries should specialize in the production of goods for which they use fewer resources in production than their trading partners.

Explanation:

7 0
2 years ago
Suppose an investment offers to triple your money in 48 months (don't believe it). Required: What rate of return per quarter are
Daniel [21]

Answer:

Rate of return per quarter = 7.11%

Explanation:

<em>The rate of return is the percentage return  earned  if compounding  is done quarterly. It can be worked as follows:</em>

r= (FV/PV - 1)- 1× 100

r- rate of return

FV= Future value of the investment after 48 months

PV= Amount invested now

Let the amount invested i.e PV be 10.

If the investment is tripped, the sum earned would be 3×10 = 30

DATA

FV- 30

PV- 10

n-48/3= 16

r= ?

r = ((30/10)^1/16 -1 )× 100

r= 7.1075  × 100 = 7.11%

r= 7.11%

Rate of return per quarter = 7.11%

3 0
3 years ago
Due to an upwelling of public fear, cities across the country pass laws imposing taxes on and implementing inspections of any bu
Alina [70]

Two options are applicable for the given statement

  • Political-legal
  • General environment

Option A and C

Explanation:

Legal restrictions on a business, as well as public activism for those restrictions, are part of the political-legal dimension of a company’s general environment. These laws are part of the general environment in which Camp Bow Wow operates because these laws affect all businesses which could allow one of these dogs to live on their property (e.g. a dog's outdoor seating restaurant), not just Camp Bow Wow.

Heidi notes that Camp Bow Wow wants "a very strong culture," which consists of various elements, both visible and invisible. It is important to consider all aspects of the community when assessing the match between the culture of an entity and the environment.

4 0
3 years ago
When using equity financing, firms run the risk of?
serg [7]
They run the risk of diluting the firm's ownership. Hope I helped! :)
8 0
3 years ago
Highly Suspect Corp. has current liabilities of $401,000, a quick ratio of 1.50, inventory turnover of 3.70, and a current ratio
Scrat [10]

Answer:

$3,115,770

Explanation:

Given:

Current ratio = 3.60

Current liabilities = $401, 000

Quick ratio = 1.50

Inventory turnover = 3.70

Current ratio is calculated by dividing your current assets by your current liabilities.

                     Current\ ratio = \frac{Current\ Assets}{Current\ Liabilities}

                                     3.60 = \frac{Current\ Assets}{401, 000}

                     Current Assets = 3.60 × 401,000

                                               = $1,443,600

                    Quick\ ratio = \frac{(Current\ Assets\ -\  Inventory)}{Current Liabilities}

                    1.50 = \frac{1,443,600\ -\  Inventory}{401,000}

                    1.50 × 401,000 = 1,443,600 - Inventory

                    601,500 = 1,443,600 - Inventory

                    Inventory = 1,443,600 - 601,500

                                     = $842,100

                    Inventory\ Turnover = \frac{Cost\ of\ Goods\ Sold}{Inventory}

                    3.70 = \frac{Cost\ of\ Goods\ Sold}{842,100}

                    Cost of Goods Sold = 3.70 × 842,100

                                                      = $3,115,770

8 0
3 years ago
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