Each tire is worth $134.79 :)
Answer:
A. an increase in the price level (inflation)
Explanation:
When there is an unanticipated increase in aggregate demand it usually result in the general increase in the price level of that good demanded (inflation). This is because when there is an unpredicted increase in demand for a good, the demand becomes higher than the supply for that good at that particular period. Because the supply is now less than the aggregate demand, the prices of the commodity is then increased to discourage demand. The increase in the price of the commodity (inflation) therefore is a direct result from the increase in the aggregate demand for that commodity.
Answer:
(B) What must be given up to acquire it
Explanation:
Opportunity cost, in a simple language, means trade-off or an income or savings that we need to forego.
It is the amount or value of a certain event or activity that must be given off due to choosing one alternative over another.
In this case, the salary of $50,000 per year is the opportunity cost.
Answer:
1.98%
Explanation:
The computation is shown below:-
As we know that
PPP equation i.e
Nominal Interest rate = Real interest rate + Inflation rate
Now
The Inflation rate for Fiji is
= 5% - 2%
= 3%
And, the Inflation rate for US is
= 3% - 2%
= 1%
As we can see that the inflation rate for Fiji is more than the inflation rate for US so we should be depreciated the currency by considering the inflation differential which is shown below:
= (1 + 3%) ÷ (1 + 1%) -1
= 1.98%
Answer:
They decided to set up a partnership.
Explanation:
Two persons agreeing to share the <em>risks</em> and <em>profits</em> of their business
