Answer:
$1,828,679.65
Explanation:
The computation of the present value of the perpetuity is shown below;
The Present value of the perpetuity is
But before that as on the start of the perpetuity is determined using the formula,
= Perpetuity Amount ÷ Monthly rate
= $20,000 ÷ 1%
= $2,000,000
Now
Present value today is
= Present value of perpetuity as on the start of the perpetuity ÷ (1 + Monthly rate)^Months
= $2,000,000 ÷ (1 + 1%)^9
= $2,000,000 ÷ 1.093685273
= $1,828,679.65
Answer:
C. The short-run Phillips curve shifts upward and the long-run Phillips curve does not shift.
Answer:
The options for this question are the following:
A. from debtors to creditors; a smaller
B. from creditors to debtors; a larger
C. from debtors to creditors; a larger
D. from creditors to debtors; a smaller
The correct answer is A. Debtors to creditors; a smaller
Explanation:
There are two definitions of deflation. Most people believe that it is simply price drop. But debt deflation is what happens when people have to spend an increasing part of their income on debt service contracted by them: pay mortgage debt, pay credit card debt, pay academic loans.
Nowadays, people have to spend so much money on buying a house or paying for education, that they do not have enough money to spend on goods and services, except for contracting more debt with their credit card or with other loans.
Result: the markets are slowing. Deflation means a slowdown in revenue growth. Markets contract, capital investment and employment also decrease and wages fall. That is what is happening, as a result of a deliberate policy, in Europe and in the US. The fall or stagnation of prices is nothing but the result of a smaller volume of income to spend.
Answer:
C. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date
Explanation:
