In some countries with very high inflation rates, citizens tend to spend their money as fast as they receive it in order to keep it from losing any more of its value. Under these conditions, money is said to lack stability
Explanation:
In most situations, two main factors of a high inflation rate are present in a national economy, which in most countries at the very most. Firstly, an increase in consumer spending in comparison to supply could lead to high inflation. The prices rise when more people fought about fewer goods.
Price stability ensures that excessive inflation and deflation are prevented.
Inflation represents an increase in the overall value for money and purchasing power of products and services within an economy over a prolonged period of time. Deflation is a fall over a longer period of time in the overall price cost for goods and services.
Answer:
Downward sloping; horizontal line; demand; large number of competitors
Explanation:
A monopoly is a market structure where there is only a single firm in the market. This firm is a price maker. It can charge whatever price it wants, but the consumers will demand more at a lower price.
That is why the demand curve of a monopoly is downward sloping and the same as the market demand curve.
A perfectly competitive market refers to the market structure where there is a large number of buyers and sellers. These firms are price takers. They face a horizontal line demand curve. This is because of a large number of competitors producing homogenous products. So if a firm raises its prices the consumers will move to the firm at a lower price.
The market demand curve though is downward sloping.
To calculate the present value. she should use the DISCOUNTING METHOD.
The discounting method is a valuation technique that is used to calculate the value of an investment opportunity. The method uses cash flow projections that does not take the future into consideration and discount them to get the present value estimates.
Answer:
Part a: According to Solow model higher per capita real GDP will be in Chile because of its highest saving rate.
Part b: The per capita capital stock or the labour ratio is the primary factor for these differences in the simple Solow model.
Explanation:
<em>Part a:</em>
According to Solow model higher per capita real GDP will be in Chile because of its highest saving rate.
In Solow model the GDP per capita is defined as
Also the steady state path is given as
As all other parameters are same thus the country with higher value of s will have a higher per capita GDP.
According to the Solow model, higher saving rate means larger capital stock and high level of output at the steady state.
Higher saving rate leads to faster growth in Solow model. So there is higher per capita real GDP for the country that has higher saving rate.
<em>Part b:</em>
In Simple Solow Model, the steady state per Capita GDP, 
is the function of the steady state per capita capital stock given as 
Now this indicates that
where f is an increasing concave function i.e. f'>0 and f''<0
Thus the sole dependence of per capita GDP is on per capita capital stock.
Thus the per capita capital stock or the labour ratio is the primary factor for these differences in the simple Solow model.
Answer: a. Allow management to conserve cash, give stockholders more shares, and cause no change in total assets, liabilities, or stockholders' equity.
Explanation:
Stock Splits increase the number of shares a company without actually changing their market capitalization by simply dividing the shares available.
There are a bunch of reasons to do this but one of them is to conserve cash. By splitting stock, managers can conserve cash by not paying dividends but still proving that the company can still pay dividends. The Shareholders getting MORE stock would be the reward.
Since Stock splits don't change the Market Capitalization, they don't have an effect on Equity either and by extension Assets and Liabilities.
