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AfilCa [17]
2 years ago
11

A period of very low inflation would most likely lead to

Business
2 answers:
nevsk [136]2 years ago
8 0
Inflation is an increase in price and decrease of purchasing. If inflation is low, there will be an increase in aggregate demand.
 
Aggregate demand is the total of all goods and services produced during a period of time. If the prices rise, consumers tend to spend less money because the prices could keep rising and they are preparing for the future. 
Dafna1 [17]2 years ago
6 0

<u>A period of very low inflation would most likely lead to an increase in the aggregate demand in the economy.  </u>

Further explanation:

Implication of low inflation rate: A low inflation rate implies that the purchasing power of a specific amount of money rises. A very low inflation period will enable consumers to have a large basket of goods and services in exchange for a specific amount of money.  

Effect of low inflation on the economy: A period of low inflation rate will turn into an increase in the aggregate demand in the economy. Since a low inflation rate in the economy provides benefits to the consumers in the form of increasing their purchasing power. Thus, the aggregate demand in the economy rises. People will demand number of goods and services as a result in order to take advantage of increased purchasing power.  

Therefore, the measure of aggregate demand rises in the economy as a result of a period of low inflation.  

Learn more:

1. Learn more about inflation and economy

<u>brainly.com/question/3310349 </u>

2. Learn more about inflation

<u>brainly.com/question/3370347 </u>

3. Learn more about the effect of inflation

<u>brainly.com/question/2974782 </u>

<u> </u>

Answer details:

Grade: Senior School

Subject: Economics

Chapter: Aggregate Demand and Aggregate Supply

Keywords: a period, of low inflation, would most, likely lead to, low inflation rate, the purchasing power of a specific amount of money rises, consumers can purchase, a large basket of goods and services, the advantage of increased purchasing power, effect of low inflationary period.  

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Oxana [17]

Answer::Leader-Member exchange , Out group members

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The  created relationship can either succeed   when there is trust and mutual respect leading to effective employees  or  fail by producing  undesired result in terms of a hostile relationship leading to low efficiency and productivity from employees

According to the leader member exchange theory, leaders tend to  create  different relationships with followers by forming two groups----- in group members  and out group members

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4 0
3 years ago
Mullineaux Corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt
nlexa [21]

Answer:

10.02%

Explanation:

The computation of the WACC is shown below. The formula of WACC is shown below:

= (Weightage of debt × cost of debt)  + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of  common stock) × (cost of common stock)

= 27% × 7.6% × (1 - 0.40) + 9% × 5.9% + 64% × 12.9%

= 2.052% × (1 - 0.40) + 0.531% + 8.256%

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8 0
3 years ago
The internal rate of return (IRR) refers to the compound annual rate of return that a project generates based on its up-front co
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Answer:

The answer and procedures of the exercise are attached in the following archives.

Explanation:

Consider this explanation too

The IRR is the project’s expected rate of return, assuming that intermediate cash flows also earn the IRR. If this return exceeds the cost of the capital invested in the project, the excess value goes to the firm’s shareholders. Therefore, independent projects whose IRR is greater than the WACC should be accepted.

Therefore in this case WACC of the project is 7% and IRR of the project is 1.86% which is less than WACC of the project. Hence the firm reject the project delta.

Calculation of IRR is based on Cash inflows and outflows for the number of years so that increase in cost of capital will not affect IRR.

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3 years ago
Suppose the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new j
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Answer:

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Explanation:

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Answer:

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