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
Lady bird [3.3K]
3 years ago
5

Negative inflationary surprises lead to a(n):____________.

Business
1 answer:
Vlada [557]3 years ago
3 0

Answer: increase in real interest rate

Explanation:

Negative inflationary surprises lead to an increase in the real interest rate. The real interest rate is simply defined as the rate of interest that a saver, investor, or a lender will receive after inflation ahs been allowed.

It should be noted that the real interest rate is the nominal interest rate minus inflation. Therefore, a negative inflationary surprises lead to a rise in the real interest rate.

You might be interested in
The stock price of Atlantis Corp. is $43 today. The risk-free rate of return is 10%, and Atlantis Corp. pays no dividends. A cal
Elena-2011 [213]

Answer:

correct option is  a. $.05

Explanation:

given data

stock price S = $43

rate of return r= 10%

exercise price K = $40

time = 6 month

worth = $5

solution

we will apply here formula for worth that is  

P = C - S + K × e^{-rt}

here C is given worth 5 and S is stock price and K is exercise price and t is time and r is rate

so put here all value in equation 1 we get

P = C - S + K × e^{-rt}

P = 5 - 43 + 40 × e^{-0.1*6/12}

P = 5 - 43 + 38.05

P = 0.05

so here correct option is  a. $.05

8 0
3 years ago
A food manufacturer reports the following for two of its divisions for a recent year.
hram777 [196]

Answer:

1. 13.8% and 14.6%

2. 13.6% and 16.5%

3. 1.01 times and 0.88 times

Explanation:

The computations are shown below:

1. Return on investment = Operating Income ÷ Average invested Assets

where, average invested assets would be

= (Invested assets, beginning + Invested assets, ending) ÷ 2

For Beverage Division, it would be

= $366 ÷ {($2,696 + $2,610) ÷ 2}

= $366 ÷ $2,653

= 13.8%

For Cheese Division, it would be

= $651 ÷ {($4,489 + $4,417) ÷ 2}

= $651 ÷ $4,453

= 14.6%

2. Profit margin = (Operating income ÷ sales) × 100

For Beverage Division, it would be

= ($366 ÷ $2,698) × 100

= 13.6%

For Cheese Division, it would be

= ($651 ÷ $3,942) × 100

= 16.5%

3. Investment turnover = Sales ÷ Average Operating Assets

For Beverage Division, it would be

= $2,698 ÷ {($2,696 + $2,610) ÷ 2}

= $2,698 ÷ $2,653

= 1.01 times

For Cheese Division, it would be

= $3,942 ÷ {($4,489 + $4,417) ÷ 2}

= $3,942 ÷ $4,453

= 0.88 times

7 0
3 years ago
Consider two spices, cumin and paprika, to be substitutes, a decrease in the supply of paprika, should cause an increase in the
makvit [3.9K]

Answer:

an increase in the price of both

Explanation:

A decrease in the supply of paprika would cause an increase in the price of both substitute goods. When the supply of paprika falls, the demand will be greater than what is available for sale and this would cause the sellers to raise it's price afterall it is now scarce.

Also as a substitute good, more people would begin to switch to buying cummin which would raise the demand for cummin. This increase in demand for cummin would then cause the price of cummin to go up.

3 0
3 years ago
What is the definition of an entrepreneur
ANTONII [103]

Answer;////// An Individual who undertakes the creation, organization,and ownership of an innovative business with the potential for growth///One who draws upon his or her skills and initiative to launch a new business venture with the aim of making a profit, Often a risk-taker, inclined to see opportunity when others do not.................................Good luck


7 0
3 years ago
A COMPANY HAS RECENTLY OURSOURCED ITS PAYROLL PROCESS TO A THIRD-PARTY SERVICE PROVIDER. AN AUDIT TEAM WAS SCHEDULED TO AUDIT PA
Olin [163]
C. The third party is a desperate business. If it sees a major flaw from the third party it could possibly take action but this isn't as much of a worry as one would think.
7 0
3 years ago
Other questions:
  • George saves 18% of his total gross weekly earnings from his 2 part-time jobs. he earns $6.25 per hour from one part-time job an
    6·2 answers
  • A _______ is a group of people who agree to save their money together and to make loans to each other at a relatively low rate o
    12·2 answers
  • Which of the following is not a function of prices in a market system? Group of answer choices Prices send signals to buyers and
    12·1 answer
  • Serendipity Inc. is re-evaluating its debt level. Its current capital structure consists of 80% debt and 20% common equity, its
    11·1 answer
  • In a production process new raw materials are considered_____ whereas the finished products are considered______
    9·1 answer
  • Which of the following is an example of a shortage?
    10·1 answer
  • The trading securities portfolio of Jerome, Inc., had a total cost of $3,000 and
    15·1 answer
  • Has anybody took financial literacy on edmentum? Please reply to this.
    7·1 answer
  • Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two dis
    10·1 answer
  • A cost incurred in the past that is not relevant to any current decision is classified as a(n):_________
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!