Answer:
a.borrowers gain at the expense of lenders.
Explanation:
Suppose the annual rate of inflation has been 3 percent during each of the last three years and that borrowers and lenders have come to expect this rate of inflation. If the inflation rate unexpectedly rises, then borrowers gain at the expense of lenders.
As inflation increases, two things happen
1. The amount of interest paid to lenders technically becomes of smaller value and lenders are loosing while borrowers are paying lesser
2. As inflation sets in, wages are increased to compensate for inflation and since the borrower already owed money before the inflation occurred, now he or she has more money in his or her paycheck to pay off the debt.
Answer:
decrease the demand for good A.
Explanation:
Under the cross price elasticity of demand, there are two goods i.e substitute goods and the complementary goods.
The substitute goods shows the positive relation between the price of good B and the demand of good A. That means if the price of good B decreases. then the demand of good A is decreases and vice versa
Whereas, in the case of complimentary goods, it shows a negative relation between the price of good B and the demand of good A. That means if the price of good B decreases. then the demand of good A is increases and vice versa
The answer is 5 hope I helped u
Answer:
the amount of dividends received by the common stockholders in 2017 is $91,000
Explanation:
Holders of Common Stock receive their dividends after Holders of preferred stock have received their share.This is because the Holders of preferred stock have first preference over Holders of Common Stock
Note : The Preference Shares are non-cumulative. Meaning that any dividends arrears will not be accumulated in other years.
<u>Calculation of Dividends attributable to common stockholders</u>
Dividend Declared and Paid - 2017 $156000
<em>Less</em> Preference Dividend(13000×100×5%) ($65,000)
Dividends attributable to common stockholders $91,000
