Answer:
a. Overstates Inflation.
In the case of Mary and Bob, the CPI would have already increased but in this case the price of the minivan increased as well. This will overstate inflation because it will not measure the general rise in price alone (inflation), it will also measure the rise in price as a result of the new minivan having better features.
b. Understated Inflation
Donna's case represents an understated inflation because the quantity shrank yet the price stayed the same. This means that the price is now buying less quantity than it used to which is inflation because more dollars are now required to buy the previous amount. This was not however recorded as there was no change in price.
c. Overstates Inflation
In the case of Zach, the inflation will be overstated because Zach is no longer buying bagels and is now buying muffins so continuing to use bagels as a representative good in the basket of goods used to calculate CPI would be overstating it.
d. Accurate representation of Inflation
In Chris's case, the increase in the price of the same shoe over the years has been because of a general rise in prices and not because it is a different model. It is the same shoe and its price is rising generally so this is an accurate depiction of inflation.
Answer:
$10
Explanation:
Interior airline is expected to make a dividend payment of $3
The growth rate of the dividend is 10%
The risk free rate of the return is 4%
The expected return on the market portfolio is 13%
The stock beta of interior airline is 4
The first step is to calculate the cost of equity
r= 4% + 4(13%-4%)
r= 4% + 4(9)
r= 4% + 36
r= 40%
Therefore, the value of the stock using the constant growth DMM can be calculated as follows
Value of the stock= 3/(40/100-10/100)
= 3/(0.4-0.1)
= 3/0.3
= $10
Hence the value of the stock is $10
Answer:
Vertical acquisition
Explanation:
According to my research on information technology businesses, I can say that based on the information provided within the question this is an example of a Vertical acquisition. This is the process of buying a firm that is in the same industry in which the acquired firm and the acquiring firm represent different steps in the production process.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Answer:
A. The export and import of goods and services
Explanation:
The current account refers to the trade balance of a country. It is the record of a country's transactions with the rest of the world.
Current account includes imports and exports of goods and services, payments made to foreign investors, and transfers such as foreign aid.
The current account of a country can either be a surplus (positive) or a deficit (negative).
Surplus current account is when a country's export is greater than its import.
Deficit current account is when a country's export is less than its import.
Import refers a situation where a country buys goods from another country.
Export refers to a situation where a country sells to other countries of the world.
The current account is a part of the balance of payments, the other part is the capital or financial account.
Financial/capital account measures cross-border investments in financial instruments and changes in central bank reserves.
