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3 years ago

Which is an effect of stagflation?

Business

1 answer:

egoroff_w [7]3 years ago

3 0

Answer:

2) The value of a country's currency drops

Explanation:

Stagflation is an economic condition that is characterized by reduced economic activity, high unemployment, decline in GDP and rising prices of goods and services e.g. increase in inflation.

Increase in general price level of goods and services denotes reduction in purchasing power of the currency and thus reducing the value of the currency against other currencies.

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Each of the following situations is independent. Work out your own solution to each situation, and then check it against the sol

saw5 [17]

Morgan will get $1600 with the process of simple interest.

<h3>what is simple interest?</h3>

Simple interest is calculated based on a loan's principal or the initial deposit into a savings account. Simple interest doesn't compound, therefore a creditor will only charge interest on the principal sum, and a borrower will never be required to pay further interest on the interest that has already accrued.

Rate of interest = 12%

principal = $1000

Time = 5 years

Simple interest

$=\frac{1000 \times 5 \times 12}{100}\\=600$

Now amount = 1000+600 = 1600.

Therefore, Morgan will get $1600.

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8 0

1 year ago

If competitors can copy or match the products and services the firm offers, it will be difficult to develop a sustainable compet

balu736 [363]

Answer:

resources that are valuable, rare, costly to imitate, and non-substitutable

Explanation:

If competitors can copy or match the products and services the firm offers, it will be difficult to develop a sustainable competitive advantage through product excellence. A firm can, however, develop an advantage through product excellence with resources that are valuable, rare, costly to imitate, and non-substitutable

Apart from product excellence, Intangible assets that have no physical presence like Brand reputation, trademarks and intellectual property are all intangible assets unlike physical resources, cannot buy from the market by other competitors. They are developed within a company and constitute the source of sustainable competitive advantage.

In particular, the resources that generate competitive advantage are those that possess the VRIO characteristics,which implies that they are

Valuable, hence there will be no competitive disadvantage

Rare, hence there will be no competitive parity

Imitate, - are costly and difficult to imitate hence they cannot be copied

Organised to Capture Value - which means they are non-substitutable.

4 0

3 years ago

A bear market is distinguished by ________.

kiruha [24]

<span>A bear market is distinguished by a declining stock market and decreasing investor confidence. A bear market is when security prices fall and the stock market starts to take a downward turn. The market tries to become self-sustaining so investors start to sell off their stocks and securities. </span>

8 0

3 years ago

Read 2 more answers

Account Balances

Mashutka [201]

If a person write a check for $759 to make a payment on a loan, then the account balance would be changed as in the balance sheet of the person.

<h3>What is account balance?</h3>

An Account balance is limited as the amount of monetary system that is hold in a specific account in the bank account or in any another account.

From the given case, if a person make a payment of loan, then the account balance would be:

Assets = $36,767 ($37,526 – $759)

Liabilities = $12,086 ($12,845 -$759)

Equity = $32,500

Therefore, the balance of Equity remains unaffected by the payment of loan.

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6 0

1 year ago

This shop is a sole trader and needs to obtain finance in order for the business to continue trading. Explain

nata0808 [166]

Answer:

see below

Explanation:

1. Personal Savings

The sole trader can invest his savings into his business for expansion. A sole trader who is confident about his business's prospects will be prepared to invest additional savings into the business for growth. The use of savings relieves them from the strain of interest payments and enables them to retain full control over the business.

2. Sale of Assets

Should a sole trader require funds to expand their business, they opt to dispose of some of their assets. If the trader does not have savings or retained earnings and have a property registered in their name, they may decide to sell it to raise capital.

7 0

3 years ago