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drek231 [11]
3 years ago
7

Suppose that the central bank in this economy is concerned that inflation is too high and wants to lower the inflation rate by 6

percentage points per year. A reduction in the rate of inflation is known as d sinflation . To reduce inflation from 8% to 2% in the short run, the central bank would have to accept an unemployment rate of ____________ .
a. True
b. False:
Business
1 answer:
leva [86]3 years ago
8 0

Answer:

a) True

Explanation:

We can not determine the exact percentage by which a 6% reduction in inflation will cause a hike in unemployment but this conclusion is true. As per the Philips Curve, inflation and unemployment are in an inverse relationship

This is to say an increase in one will cause a decrease in the other and vice versa. This relationship however is not linear and so the degree of changes one variable causes in another will depend on the economy and statistics of the economy.

Hope that helps.

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Which of the following is a contrary indicator?A) odd-lot tradingB) breadth of market and market volumeC) short-interest and the
garri49 [273]

Answer:

Short Interest and the Advance/Decline line

Explanation:

The Short Interest and the advance/descent line, also known as the AD line, is an indicator of market amplitude that gives the same weight to all the values ​​of an index or market. The advance/descent line, also known as the AD line, is an indicator of market breadth that gives the same weight to all the values ​​of an index or market.

The advance / descent line is an indicator of market breadth because it informs us of the general market movement. Similarly, when we say that it gives the same weight to all stock index values, we are saying that for the forward / down line all values ​​are equally important.

What really interests this indicator, being of market breadth, is to see if the price movement is accompanied by the movement of the indicator.

4 0
3 years ago
accounting Which organization has the authority over the accounting and financial disclosures for companies whose shares of owne
Ivan

Answer:

Securities Exchange Commission (SEC)

Explanation:

Securities Exchange Commission (SEC) have a mission of protecting investors, ensuring a fair and efficient market, and encourage capital formation.

They monitor participants in the securities markets by ensuring there is disclosure of important information regarding the market, maintain fair dealing, and protect participants against fraud.

Therefore SEC has the authority over the accounting and financial disclosures for companies whose shares of ownership (stock) are traded and sold to the public.

These measures are in place to protect investors.

6 0
3 years ago
Question 1 of 10
Levart [38]

Answer:

D. Dividends Payable

Explanation:

On the day dividends are declared, the amount declared is debited to the retained earnings accounts and credited to the dividend payable accounts. The dividends have not yet been paid, meaning the money is still with the company. For this reason, the cash account.

A dividend is not an expense, so there can never be a dividend expense account.

4 0
3 years ago
Trey has $5.00, he needs gas and he needs to eat lunch. He can only do one for $5.00 not both or part of both. Trey buys gas to
Genrish500 [490]

Answer:

Tray's opportunity cost is not being able to purchase lunch,  the alternative tray decided not to take would I assume to be just getting gas and to eat at his house.

7 0
3 years ago
A new semi-automatic machine costs $ 80,000 and is expected to generate revenues of $ 40,000 per year for 6 years. It will cost
Dmitry_Shevchenko [17]

Answer:

The complete part of the question is found below:

Neglect the salvage value for payback period rate of return

Applicable rate of return is 15%

Answers:

Payback is 5.33 years

Present worth is -$18,909.48

UAC is -$ 4,996.58

Rate of return is 18.75%

Explanation:

In case of an even cash flow like this when the net cash flow yearly is $15,000($40,000-$25000), the payback period is initial investment/net annual cash flow

Payback=$80,000/$15,000= 5.33  years

Present is computed thus

Year   cash flow discount factor  pv=cash flow*discount factor

0        -$80,00       1/(1+0.15)^0      (80,000.00)

1         $15000         1/(1+0.15)^1      13,043.48  

2         $15000        1/(1+0.15)^2      11,342.16  

3         $15,000        1/(1+0.15)^3       9,862.74  

4         $15,000       1/(1+0.15)^4         8,576.30  

5         $15,000      1/(1+0.15)^5          7,457.65  

6         $25,000     1/(1+0.15)^6           10,808.19  

present worth                                     (18,909.48)

The uniform annual cost=NPV*r/(1-(1+r)^-n

NPV is -$18,909.48*0.15/(1-(1+0.15)^-6)

            =-$ (2,836.42) /0.567672404

           =-$ (4,996.58)

The rate of return can be computed thus:

rate of return=annual cash flow/initial investment*100

annual cash flow is $15000

initial investment is $80,000

rate of return=15,000/80000*100

                      =18.75%

6 0
3 years ago
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