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Artist 52 [7]
3 years ago
12

In 1924, the famous novelist F. Scott Fitzgerald wrote an article for the Saturday Evening Post entitled ?How to live on $36,000

a year?. In it he considered how he and his wife had managed to spend all of that very high income without saving any of it. The CPI in 1924 was 17 and the CPI in 2008 was 2015. What income would you have needed in 2008 to have had the same purchasing power that Fitzgerald?s $36,000 had in 1924.
Business
1 answer:
Maksim231197 [3]3 years ago
8 0

Answer:

$4,267,059

Explanation:

to determine the equivalent amount of money between 1924 and 2008, we must divide the 2008 CPI by the 1924 CPI, and then multiply by $36,000:

= (2015 / 17) x $36,000 = 118.53 x $36,000 = $4,267,059

The consumer price index measures the weighted price of basket of goods . It is useful for calculating inflation and comparing how the purchasing value of the US dollar has decreased in time. Basically what this shows us, is that $1 in 1924 would purchase the same amount of goods as $118.53 in 2008.

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Suppose the European Central Bank (ECB) decides to use monetary policy to offset the possible inflationary effects of European e
Grace [21]

Answer:

the European Central Bank (ECB) should engage in a contractionary monetary policy

Explanation:

A contractionary monetary policy takes place when a central bank (or the Fed) reduces the money supply in order to cool down the economy, lower inflation rate or like in this case, wants to offset expansionary fiscal policy.

The central bank initially raises the interest rates and starts selling more securities in order to absorb cash from the markets.

7 0
2 years ago
Dumphy and Funke are rival tattoo artists in the small town of Feline. There are no other tattoo artists in town. It costs $30 t
inysia [295]

Answer:

<u>Part a:  What will be the equilabrium price that Dumphy and Funke will charge?</u>

Answer: Price charged = $30

<u>Part b: What are the profits for Dumphy and Funke at the equilibrium price?</u>

Answer: Profit on equilibrium price = $0

<u>Part c: What type of competition would Funke and Dumphy likely engage in after the decrease in demand?</u>

Answer: Price competition

Explanation:

<u>Part a:  What will be the equilabrium price that Dumphy and Funke will charge?</u>

Answer:

Price charged by each of the artists will be equal to their marginal cost.

Thus, equilibrium P = MC = $30.

<u>Part b: What are the profits for Dumphy and Funke at the equilibrium price?</u>

Answer:

Equilibrium profits will be 0 at the equilibrium because price charged is equal to MC, leading to no profits.

<u>Part c: What type of competition would Funke and Dumphy likely engage in after the decrease in demand?</u>

Answer:

Price competition - as changes in price will lead to changes in demand and thus sales

5 0
2 years ago
These are the 5 metrics that matters most when analyzing a digital marketing campaign.
brilliants [131]

Answer:

#1 = Web traffic is the amount of data sent and received by visitors to a website. This amount necessarily does not include the traffic generated by bots.

#2 = The three main traffic sources are direct, referral, and search, although your website may also have traffic from campaigns such as banner ads or paid search.

#3 = The time-on-page is simply the time difference between the pageview hit of the next page to the current page. In this scenario, the time-on-page will be “0” seconds since the person did not go to any other page.

#4 = When an employer taxes your bonus using the percentage method, it must identify the bonus as separate from your regular wages. The withholding rate for supplemental wages is 22 percent. That rate will be applied to any supplemental wages like bonuses up to $1 million during the tax year.

#5 = Exit rate as a term used in web site traffic analysis (sometimes confused with bounce rate) is the percentage of visitors to a page on the website from which they exit the website to a different website.

4 0
2 years ago
Assume an economy is currently engaged in free trade but considering implementing a tariff on its main import, athletic shoes. W
UNO [17]

Answer:

Price - increase

Domestic production- increase

Import- reduces

Producer surplus- increase

Explanation:

A tariff is a form of tax on import or export.

When a tariff is imposed on a good , the price of the good increases.

As a result of the tariff , the amount of the goods imported falls as the imported good is now more expensive. The quantity produced by domestic producers increases as consumers would now start demanding for the domestic good. Tariffs are sometimes enacted to discourage importation and encourage domestic production.

As a result of the price increase, producer surplus increases. The increase in price also increases output. The producer surplus is the difference between the price of a product and the least amount the producer is willing to sell his product.

I hope my answer helps you.

7 0
3 years ago
"Calandra Panagakos works for CIBC Currency Funds in Toronto. Calandra is something of a contrarianlong dashas opposed to most o
Ad libitum [116K]

Answer:

Calandra should buy call on Canadian Dollars on C$ $0.7000 $0.00049

Explanation:

If she is expecting the Canadian dollar to appreciate versus the United States Dollar in the future, she would buy a calla that gives her the right to buy Canadian Dollars at a lower price than hers future cost projection.

8 0
3 years ago
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