1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MatroZZZ [7]
3 years ago
10

Assume in 2016 that your income was $50,000 and in 2017 your nominal income increased to $70,000. If the CPI changed from 100 to

110, then your real (purchasing power) income _______________?.
Business
1 answer:
Andrej [43]3 years ago
8 0

Answer:

$55,000

Explanation:

Data provided in the question:

Income in 2016 = $50,000

Nominal income in 2017 = $70,000

CPI in 2016 = 100

CPI in 2017 = 110

Now,

Purchasing power in 2017 = [ CPI of 2017 ÷ CPI of 2016 ] × Income in 2016

or

Purchasing power =  [ 110 ÷ 100 ] × $50,000

or

Purchasing power = 1.1 × $50,000

or

Purchasing power = $55,000

You might be interested in
What is our planet called?
laila [671]

Answer:

Earth

Explanation:

4 0
3 years ago
Read 2 more answers
Which communication network involves one person acting as a gatekeeper regulating the flow of information?
aliya0001 [1]
I believe the answer is wheel network.
In wheel network, only one person has the authority to give all informations to all a members of the company (usually the leaders).
This type of network information has the least chance of misunderstanding the information because the source of information hasn't been passed  around from one perceptive to another.
6 0
3 years ago
A customer buys 100 shares of ABC at $17 as the initial transaction in a new margin account. The customer must deposit:______
Elena L [17]

Answer:

$1,700

Explanation:

Although the minimum equity to open a long margin account is $2,000. However, this does not apply if the securities in the account are paid fully.

It will amount to potential loss if a customer is asked to deposit more than 100% when buying. Since the customer wants to buy 1,700 of stock, it means that 100% or $1,700 (100 shares × $17) must be deposited.

3 0
3 years ago
Public goods represent a market failure because
JulsSmile [24]
Public goods are available everywhere and are <span>both non-excludable and non-rivalrous</span>
They represent a market failure because <span>by their very nature they are nonexcludable and nonrival which makes it difficult for the private sector to supply them profitably. Answer: B
</span>Public goods are nonrival in consumption and their benefits are nonexcludable
7 0
3 years ago
A stock has a required return of 11%; the risk-free rate is 7%; and the market risk premium is 4%.
kotegsom [21]

Answer:

The Beta is 1

The required return increases to 13%

Explanation:

The formula for required return is given below:

Required Return = Risk-Free Rate of Return + β(Market Return – Risk-Free Rate of Return)

required return is 11%

risk-free rate of return=7%

Beta is unknown

market return-risk free rate of return is market risk premium is 4%

11%=7%+beta(4%)

11%-7%=beta*4%

4%=beta*4%

beta=4%/4%

beta=1

If the market risk premium increased to 6%,required return is calculated thus:

required return=7%+1(6%)

required return =13%

This implies that the riskier the stock, the higher the market risk premium, the higher the required return to investors.

6 0
3 years ago
Other questions:
  • A. Use the midpoint formula to calculate elasticity of demand for the following data values for product A. Must show work to rec
    6·1 answer
  • A ____________ organization is characterized by direct two-way lines of responsibility, authority, and communication running fro
    14·1 answer
  • What are three factors that can cause a supply change for phones
    14·1 answer
  • England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweate
    9·1 answer
  • John is interested in joining with a large corporation in a cooperative venture to share risks and pool resources for his small
    12·1 answer
  • Due to a number of lawsuits related to toxic wastes, a major chemical manufacturer has recently experienced a market reevaluatio
    9·1 answer
  • chapter 13Identify the type of cash flow activity for each of the following events (operating, investing, or financing). The com
    11·1 answer
  • 1. Sharon, a newly engaged woman, saw an advertisement in a bridal magazine for a beautiful pearl necklace priced at $69.99 from
    14·1 answer
  • Amazon and Expedia are best described as ________ that sell products and services directly to final buyers via the Internet. Gro
    14·1 answer
  • In the project initiation phase, which document contains high-level details of the proposed project?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!