Answer:
She lost $754.05.
Explanation:
Giving the following information:
Liz Mulig earns 52,000 per year as a philosophy professor. She receives a raise of 2.5% in a year in which CPI increases by 3.8%.
<u>The rise in her salary allows her to increase her purchasing power. On the contrary, inflation decreases purchasing power. We need to calculate the differences between both effects and determine whether she can buy more or less.</u>
<u></u>
Increase in salary= 52,000*1.025= $53,300
Inflation effect= 52,000/(1-0.038)= $54,054.05
To maintain her purchasing power, now, she needs to earn $54,054.05.
She lost $754.05.
Answer:
D. Sole proprietorship.
Explanation:
We know it's definitely is a sole proprietorship because of 'unlimited personal liability' which is a key characteristic.
Selma's business is not a joint venture because she is the only person who invested and runs the business whereas a joint venture is created by two or more entities or 'shared ownership'
Nor is it a corporation for this is an 'organization' owned and manned by many people but is regarded as a single entity. Neither is her business an s corporation because that just the same as a corporation but just with different tax regulations.
Answer: increase
Explanation:
The supply curves slope upward due to the fact that there's a direct relationship between the price of the good and the quantity that's supplied.
This means that when price increase let's say the price of a good moves from $5 to $7, the suppliers will supply more due to the price increase.
The correct answer is option B.
The board of governors make decisions regarding changes in the discount rate.
<h3><u>
What is board of governors?</u></h3>
- The Federal Reserve System is governed by the Board of Governors, which is based in Washington, D.C.
- It is governed by seven individuals, known as "governors," who are appointed by the American president and approved in their roles by the American senate.
- In order to advance the objectives and carry out the duties assigned to the Federal Reserve by the Federal Reserve Act, the Board of Governors directs how the Federal Reserve System is run.
- The FOMC, the section of the Federal Reserve that determines monetary policy, includes all of the Board members.
- The periods of each member of the Board of Governors are staggered so that one term ends on January 31 of every even-numbered year. Each member is appointed to the position for a 14-year period.
When the Reserve Banks lend to depository institutions and others, as well as when they offer financial services to depository institutions and the federal government, the Board also offers general oversight, direction, and counseling.
Know more about board of governors with the help of the given link:
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Answer:
expected return on market = 0.10373 or 10.373%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the market risk premium
We will first calculate the market risk premium using the required rate of return for stock, beta and risk free rate and plugging these values in the formula above.
0.1330 = 0.058 + 1.64 * rpM
0.1330 - 0.058 = 1.64 *rpM
0.075 = 1.64 * rpM
rpM = 0.075 / 1.64
rpM = 0.04573 or 4.573%
As we know that the beta for market is always equal to 1, we can calculate the rate of return for market as,
expected return on market = 0.058 + 1 * 0.04573
expected return on market = 0.10373 or 10.373%