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mamaluj [8]
2 years ago
5

On October 15, 2019, the Department of Labor announced that the Producer Price Index (PPI) experienced an unexpected 1.1 percent

increase in September, the largest jump in 9 years. Based on this information alone, what would you expect to happen to interest rates and stock prices?
A. We should expect higher interest rates and lower stock prices
B. We should expect higher interest rates and higher stock prices
C. We should expect lower interest rates and lower stock prices.
D. We should expect lower interest rates and higher stock prices.
Business
1 answer:
Kruka [31]2 years ago
5 0

Answer:

A. We should expect higher interest rates and lower stock prices.

Explanation:

Producer price index refers to the price that producers recieve for their products. When there is an increase in PPI it means producers are receiving more revenue.

Increased revenue will result in more money in circulation. To regulate the excess money the monetary authorities will increase interest rate to reduce borrowing and by extension money in the economy.

Because there is now a need to get more funds by the companies, they will lower share prices to make them attractive to prospective investors.

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Which of the following is an objection to relying solely on Return on Market Investment (ROMI) results?
masha68 [24]
The statement that <span>is an objection to relying that solely on Return on Market Investment (ROMI) results is that </span>"ROMI requires knowing what would have happened without the marketing expenditure." ROMI <span> is the contribution to profit attributable to </span>marketing<span> (net of marketing spending), divided by the marketing 'invested' or risked.</span>
4 0
3 years ago
A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
Sedaia [141]

Answer: $670,400

Explanation:

Period costs are not included in direct production and in this instance include:

  • Variable selling and administrative expense
  • Fixed manufacturing overhead
  • Fixed selling and administrative expense

Period costs = (12,000 * 4) + 406,400 + 216,000

= $670,400

7 0
2 years ago
How does a business's corporate culture affect employee satisfaction? How does a business's corporate culture affect customer sa
oee [108]
<span>A business corporate culture is a set of values, beliefs and policies that guide an organization. It is not limited to the code of ethics and conduct of its management and employees but extend to how this code is being put into practice in the day-to-day operation of the company.

If the corporate culture of the business is positive like there is a clear definition of jobs, goals, and career path, then employee satisfaction will increase. It will create a positive environment where employees give their best in doing their jobs and employee turnover is negligible. 

Having a positive corporate culture will resonate not only to the employees but also to the customers. The company will have a good reputation and will be talked about by satisfied clients. Thus, increasing its customer base and target market.

Having a negative corporate culture will generate the reverse output. Employee satisfaction is nonexistent. Employee turnover is high. Customer satisfaction is down and company reputation is negative. </span>
7 0
3 years ago
Federal law prohibits employers from hiring certain illegal alien workers. Suppose an employer advertises the availability of a
Vladimir79 [104]

Answer:

The correct answer is Conflict.

Explanation:

Ethical conflict, is all conflict of values, that is when contradictory values ​​come into play when faced with the need to make a decision.

As examples we have, the construction of a dam that will allow to provide electricity to a region, but implies pollution or destruction of the environment; having an abortion is a moral problem, practicing a woman abortion is an ethical problem; stealing is a moral problem, defining punishment is an ethical problem; Euthanasia is a moral problem, defining who should apply is an ethical problem.

Conflict ethics means assuming values ​​and attitudes that men can share and defend all. It implies achieving a code of conduct of mutual responsibility that takes into account the effects of what we do, both in the present and in the future; This conflict ethic needs the defense of values ​​that involve men, nature and the world, which strengthens respect for life and freedom.

7 0
3 years ago
Suppose Sam would like to use $6,000 of his savings to make a financial investment. One way of making a financial investment is
grin007 [14]

Answer:

The correct options are option C and Option D.

Explanation:

Lets look at each option in turn and evaluate whether they are correct or incorrect

Option A: Incorrect. This can be understood by thinking in terms of the classic demand and supply of a given item. If the company issues more shares, there will be a greater amount of shares in the market for a potential investor to buy. This additional supply of shares will put a downward pressure on the price of the shares which will cause the share price to decrease.

Option B: Incorrect. When a company issues shares to raise money, it is known as equity finance. By doing so, the company is increasing its capital which is recorded in the balance sheet under the heading of "share capital". Another statement that will be impacted is the cash flow statement under the heading of cash flow from financing activity. The income statement will not be impacted. If Sam purchases shares from another investor, the company's statements will not be impacted.

Option C: Correct. Expectations of a recession that reduce corporate profits for make investors expect a lower return on investment if they invest in a corporation's shares. This will dampen the demand, thereby decreasing the price.

Option D: Correct. An investor measures the opportunity cost of an investment by generally comparing it to the risk free return that they can get on US bonds. So the investor can alternatively invest in US govt instruments.

Option E: Incorrect. A bond maturing 30 years from now will carry a DIFFERENT interest rate due to the varying tenor. The tenor of a bond affects the risk profile of an investment in the bond which makes bonds of differing maturities offer different returns in line with expectations concerning economic performance.

7 0
3 years ago
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