Answer:
Explanation:
Hyperinflation occurs when the prices of goods and services increases very rapidly. This situation is stirred up when the federal government in a country prints more money in order to finance their fiscal budget, this leads to increase in price coupled with inflation, this is as a result of increase in the supply of money.
The government is supposed to secure the supply of money in order to reduce inflation instead of printing more money. Consumers that understands what this means anticipates increase in price, this makes them buy more before the eventual increase in price.
Note that during hyperinflation debtors benefits, because their debt becomes worthless due to increase in price.
Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, a
igor_vitrenko [27]
Answer:
The present value of cash flows is $ 5,292.13
Explanation:
The present value is today's equivalence of the company's future cash flow discounted using the 7% interest rate as a discount rate.
Formula for pv of a cash flow=cash flow/(1+r)^n
r is the 7% interest rate
n is the relevant year each cash flow relates to
PV=$1,350/(1+7%)^1+$1550/(1+7%)^2+$1550/(1+7%)^3+$1850/(1+7%)^4=
$ 5,292.13
No, they can be used for mechanical uses
The answer for this qeustion is: Thinking in time
By using scenarios, we can formulate several outcomes that could possibly happen if we decided to follow a certain plan.
If we do this, we could prepare our actions on how to deal with those outcomes before it actually happens in real life.
Answer:
In the country that promotes free-market economy is expected to start seeing firms arriving in this country and invest in those activities where this country has a comparative advantage.
Explanation:
This would lead to an efficient allocation of productive resources taking the economy to optimum production. The technology and tools will rapidly spread, and the industrialization process will be achieved. In the other country, investment and technology implementation is lead by the government allocating resources inefficiently and delaying industrialization.
