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dsp73
3 years ago
6

Due to recent political and economic events, general prices of goods and services are expected to increase significantly over th

e next five years. You were about to purchase a five-year bond. You now require a higher return on the bond than you did before you found out about these expected price increases.
Determine which of these fundamental factors is affecting the cost of money in the scenario described:

a. Inflation
b. Time preferences for consumption
c. Risk
Business
1 answer:
melomori [17]3 years ago
5 0

Answer:

a. Inflation

Explanation:

In the context of economics, inflation refers to the increase in the price of goods and services

Moreover,  we also know that

(1 + Nominal rate of return) = (1 + real rate of return) × (1 + inflation rate of return)

According to the given situation, it is mentioned that The general goods and services prices are expected to rise substantially over the next five years which represents the concept of inflation

Hence, the option a is correct

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Answer:

Kanban container size = 73

Number of kanbans needed = 5

Explanation:

Kanban container size (Q):

Q = SQRT [(2 x D x S) / H x (1 - d/p)]

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D = Annual demand  

S = Setup cost

H = Holding cost

d = Daily usage

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Putting the given values in the above formula,

CONTAINER SIZE = SQRT ((2 * ANNUAL DEMAND * SETUP COST) / (HOLDING COST * (1 - (DAILY USAGE / DAILY PRODUCTION))))

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3 years ago
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