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MA_775_DIABLO [31]
4 years ago
13

Under the assumptions of the Fisher effect and monetary neutrality, if the money supply growth rate rises, then a. neither the n

ominal nor the real interest rate rise. b. the nominal interest rate rises, but the real interest rate does not. c. the real interest rate rises, but the nominal interest rate does not. d. both the nominal and the real interest rate rise.
Business
1 answer:
Dmitrij [34]4 years ago
3 0

Answer:

a. neither the nominal nor the real interest rate rise.

Explanation:

Under Fisher's theory, if the nominal interest rate increases at a higher rate than the inflation rate, then the real interest rate rises. If the inflation rate increases more than the nominal interest rate, then the real interest rate decreases.

Generally, an increase in the money supply decreases the nominal interest rate and increases the inflation rate. That results in both lower nominal interest rates and lower real interest rates.

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Mork and Mindy firm’s current ratio is 2.5. Considered alone, which of the following actions would reduce the company’s current
prisoha [69]

Answer:

Option B Borrow using short-term notes payable and use the proceeds to reduce long-term debt

Explanation:

The formula for calculating current ratio is as under:

Current Ratio = Current Assets / Current Liabilities

Now the option which will either increase the current liability only (Denominator) or decrease the current assets only (Nominator) will be the right answer because the answer will decrease the current ratio.

Option B So if the company borrows money from its short term loan (current liabilities) to pay its long term debt which will increase its current liabilities and non-current liabilities. So in the nutshell will only increase the denominator (current liabilities) which will decrease the current ratio. So it is the right option. The rest of the options either increase both current assets and current liabilities or decrease both current assets and current liabilities.

7 0
4 years ago
Small businesses make less use of discounted cash flow (DCF) capital budgeting techniques than large businesses. This may reflec
Ira Lisetskai [31]

Answer:

The given statement is true.

Explanation:

The reason for why this statement is true is discussed below:

  • The discounted cash flow is also called as DCF which is very important to determine the value of a business because it tells about the impact of today's investment in the future cash flows.
  • It gives us information about the worth of share of a business as small business don't have that large scale arrangements or larger cash flows so the budgeting techniques of the DCF are less beneficial for the small scale business.  
8 0
4 years ago
Which of the following statements is true about taxes?
Blizzard [7]
Answer:

All of the above
6 0
3 years ago
A bilateral contract is one in which one side promises to perform in exchange for the other side's actions
ss7ja [257]

The statement is false.

Void and voidable contracts are one and the same. Exculpatory clauses are typically considered void towards public coverage. Covenants not to compete are commonly taken into consideration void as against public coverage.

A bilateral contract is a contract in which each party alternate guarantees to carry out. One birthday party's promise serves as consideration for the promise of the other. As a result, each party is an obligor of that birthday celebration's own promise and an obligee of the opposite's promise.

A contract wherein the events trade a promise for a promise is referred to as a Bilateral contract, whereas a contract wherein one birthday party gives a promise and the other birthday celebration performs an act is known as a Unilateral settlement. these legally enforceable promises can be in writing or oral.

Learn more about the bilateral contract here brainly.com/question/13741271

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8 0
2 years ago
Sandra visits the local farmer's market every Friday during the summer, where she picks up fresh produce that was grown by the s
Nutka1998 [239]

Answer:

<em>Direct Distribution Channel</em>

Explanation:

A direct distribution channel is<em> the process to which a company receives its goods directly to consumers without any middlemen. </em>

In this case, Sandra gets her produce from the farmer that produces them.

Many businesses may use systems involving middlemen to deal with the delivery of their products. A business that is directly responsible for manufacturing, shipping and distributing its goods to the consumer, however, uses a direct distribution channel.

7 0
3 years ago
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