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Nuetrik [128]
3 years ago
11

The following table shows the average nominal interest rates on six-month treasury bills between 1971 and 1975, which determined

the nominal interest rate that the u.s. government paid when it issued debt in those years. the table also shows the inflation rate for the years 1971 to 1975. (all rates are rounded to the nearest tenth of a percent.
Business
1 answer:
natita [175]3 years ago
5 0
For the answer to the question above, <span>The equation you want to use for determining real rates is...nominal rate minus inflation=real rate. </span>

<span>'71 was -3% </span>
<span>'72 was -3% </span>
<span>'73 was -.5% </span>
<span>'74 is -1% </span>
<span>'75 was 0% </span>

<span>So 1975 is the only year their assets didn't erode from inflation! I guess they should have bought equities/stocks!</span>
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Rudiy27
D. can create either a cash inflow or a cash outflow at time zero of a project.
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4 years ago
Francis Companyhas 24,000 shares of common stock outstanding at the beginning of 2019. Francis issued 3,000 additional shares on
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Answer:

(1) The number of shares of common stock that Francis should use in calculating basic earnings per share for 2019 :

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                                         = 29000

(2) Basic EPS for 2019

                   EPS = net income / outstanding shares

                           = 72500 / 29000

                           =  2.5

(3) Diluted EPS for 2019

           Diluted EPS = (net income - preferred stock dividned )/ (Common               Shares Outstanding + Unexercised Employee Stock Options + Convertible Preferred Stocks + Convertible Debt + Warrants)

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                            = 2.28            

7 0
3 years ago
If purchasing power parity holds, when a country's central bank decreases the money supply, its:_____.
polet [3.4K]

If purchasing power parity holds, when a country's central bank decreases the money supply, its <u>If purchasing power parity holds, when a country's central bank decreases the money supply, its price level (rises/falls) and its currency (appreciates/depreciates) relative to other currencies in the world. </u>

A theory of exchange rate determination and a means to compare average prices of goods and services between nations is purchasing power parity (PPP).

According to the hypothesis, fluctuations in the spot exchange rate are caused by importers' and exporters' actions, which are prompted by variations in prices across nations.

Alternatively, PPP contends that changes to a nation's current account may have an impact on the value of the currency's exchange rate on the foreign exchange (Forex) market.

In contrast, the interest rate parity theory postulates that fluctuations in the exchange rate are caused by investor actions (whose transactions are reported on the capital account).

The "law of one price" as it pertains to the overall economy is the foundation of PPP theory.

Hence, option A and D is correct.

To learn more about PPP here

brainly.com/question/27463586

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8 0
2 years ago
Customers who face the same general needs of the marketplace but are likely to experience them months or years earlier than the
inn [45]

Answer:

Letter B is correct. <em>Lead Users</em>.

Explanation:

Term developed by prof. Eric von Hippel, Lead Users are those users who are able to transform, adapt and modify a company's product or service for their own benefit, as they face the same market needs a while before regular users.

For Prof Eric von Hippel, there are four steps in developing Lead Users:

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The premise is that the Lead Users method is effective in identifying innovation and product trends that need to be developed for a market for your needs.

3 0
3 years ago
What can we learn from the employment data? Assume Country X has the following statistics: Total relevant population = 50,000,00
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Answer:

Country x

Population size 50,000,000

Full time students 4,200,000

Not employed & not searching 6,000,000

Not employed and searching 2,336,000

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Labour force is defined as the population of the economy currently engaged in some employment and those jobless but available or searching for employment

Labour force is 32,000,000

Labor force participation rate is the labor force divided by the population size.

= 64%

Unemployment rate is defined as members of a country not employed and are searching or seeking employment.

= 4.7%

3 0
3 years ago
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