Answer:
A <u>increase</u> in the money supply will cause interest rates to decrease, which, in turn, causes spending to <u>increase.</u>
An example of a natural monopoly industry operating in South Africa include "Eskom".
<h3>
What is natural monopoly?</h3>
A natural monopoly occurs when there is an instance in which it is economically viable and better for a single entity to be in full and sole control of the production of a product or service.
Moreover, a natural monopoly is the fact that natural monopolies have extreme economies of scale. It can only start to become profitable when one single firm is able to service the majority of the market.
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Explanation:
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EPS = $1.44 (after rounding off)
<u>Explanation:</u>
<u>The calculation of Earnings per share is as follows:
</u>
Particulars Amount
Earnings before interest and tax = 71325
Less: amount of interest = 0
Earnings before tax = $71325
Less : the amount of tax ( 34 percent) = 2425.05
Net income = $47074.5
The number of shares given = 32,800
The formula of calculating the earning per share is = Net income divided by the number of the shares of a company
Thus, EPS = $47074.5 divided by 32,800 = $1.44 (rounded oof)
Answer: Exchange rate forecasting is important because exchange rate influence all aspects of business.
Explanation:
Exchange rate forecast is a method that is used to predict exchange rates by collecting all the relevant factors that may affect a currency. Exchange rate forecasting is vital because exchange rates influence all aspects of business.
The exchange rate plays a vital role for firms that import raw materials and export goods. A depreciation i.e a devaluation of the currency will make exports cheaper and therefore exporting firms will benefit. Every firm is interconnected in one way or the other, therefore exchange rate is vital.