1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dsp73
2 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]2 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

You might be interested in
Charleston, Inc. has Accounts Receivable of $170,000 and an Allowance for Doubtful Accounts of $11,000. If it writes-off a custo
Romashka [77]

Answer:

$159,000

Explanation:

The double entry to record the writes off balances which are the bad debts of Customers who will not pay the debt, will include debit to allowance which is decrease in the allowance and credit to accounts receivable which is also a decrease to accounts receivable:

Dr Allowance for doubtful account $1,100

Cr Accounts Receivable                           $1,100

Similarly the increase in Allowance for Doubtful Accounts of $11,000 will be treated totally opposite of the decrease in Allowance for Doubtful Accounts above:

Dr Accounts Receivable               $11,000

Cr Allowance for doubtful account    $11,000

Now, the increase in allowance is deducted from opening accounts receivables and vice versa. The treatment is given below:

Opening balance of Accounts receivables             $170,000

Accounts Receivable                                                ($1,100)

Allowance for Doubtful Debt    ($11,000 - $1,100)   <u>   $9,900 </u>

Accounts Receivable (Net)                                       $159,000

5 0
2 years ago
Amy is shopping for a dress to wear to a formal dance. She tried on several dresses, not even noticing the price of each. After
fredd [130]

Answer: It is called affective choice

Explanation:

Affective decision-making (ADM) is a debatable and predictive theory of individual choice under risk and uncertainty. It generalizes expected utility theory by positing the existence of two cognitive processes – the “rational” and the “emotional".

5 0
3 years ago
Cost pressure from international competitors pushes companies toward greater scale and efficiency. But some products must also m
SSSSS [86.1K]

Answer:

Transnational strategy

Explanation:

There is a difference in global approach and Transnational approach.

In global approach, one product is sold and promoted the same way across all channels and location. While in the case of Transnational strategy, it is more like a customized or personalized approach to sell products to a particular targeted audience.

Hope this helps.

Good Luck.

8 0
3 years ago
a company has net sales of $126,000, cost of goods sold of $72,000, operating expenses of $38,000, and other expenses of $3,000.
earnstyle [38]

Answer:

$13,000

Explanation:

Net income= net sales -net expenditure

in this case:

net sales=$126,000

net expenses =  $113,000 {COGS + operating exp.+other exp.}

Net income= $126,000-$113,000

                    =$13,000

3 0
3 years ago
How much did obama add to the national debt?
In-s [12.5K]
President Obama added anywhere from $983 billion to $9 trillion to the national dept.
8 0
3 years ago
Other questions:
  • When the lorillard tobacco company places ads discouraging teenagers from smoking, they are using which type of institutional ad
    6·1 answer
  • You have no health insurance and you are unemployed. where can you go in your state, county, or city for medical services?
    9·1 answer
  • Why are batteries not included in toys?
    7·1 answer
  • When it comes to investing, what is the typical relationship between risk and return?
    15·2 answers
  • Due to the nature of the patent laws on pharmaceuticals, the market for such drugs A. switches from monopolistic to competitive
    13·1 answer
  • How did Apple become successful?
    13·1 answer
  • Match the following statements to the appropriate terms.
    12·1 answer
  • A 5.5%, 20-year municipal bond is currently priced to yield 7.2%. For a taxpayer in the 33% marginal tax bracket, this bond woul
    15·1 answer
  • During March, Pendergraph Corporation incurred $65,000 of actual Manufacturing Overhead costs. During the same period, the Manuf
    10·1 answer
  • Employees covered by the overtime provisions of the Fair Labor Standards Act are labeled a. nonexempt employees. b. salaried wor
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!