Answer:
a.borrowers gain at the expense of lenders.
Explanation:
Suppose the annual rate of inflation has been 3 percent during each of the last three years and that borrowers and lenders have come to expect this rate of inflation. If the inflation rate unexpectedly rises, then borrowers gain at the expense of lenders.
As inflation increases, two things happen
1. The amount of interest paid to lenders technically becomes of smaller value and lenders are loosing while borrowers are paying lesser
2. As inflation sets in, wages are increased to compensate for inflation and since the borrower already owed money before the inflation occurred, now he or she has more money in his or her paycheck to pay off the debt.
Answer:
D. The present value is the value in the future of a sum of money to be received today and in general is less than the future value
Explanation:
Answer:
Anna
Explanation:
Overall the best model is the one which can best predict and forecast. Overall, the two students are trying to predict the prices of gasoline. Anna's model predicts correctly 75% of the time, and Maria's model can predict 55% of the time. According to the track record, Anna is likely to get higher grades because she has a better prediction record.
Answer:
The correct answer is the second option: is reported in the investing section of a statement of cash flows.
Explanation:
To begin with, a <em>statement of cash flows</em> is the name given in the business world to refer to the financial statement that shows how changes are made in the balance sheet accounts and how income affect cash and cash equivalents. Moreover, the main purpose of this financial tool is to show the company its ability to pay bills regarding the topics of how much cash and cash equivalents actual are in the company's possession.
Secondly, the cash flow statement is partitioned into three different segments: cash flow resulting from operating activites, from investing activities and from financing activities. <u>The second one, cash flow resulting from investing activities implies the situation of land acquisition</u>.
Answer:
The ending balance of retained earnings for the company $ 140.000
Explanation:
Retained Earnings increase the balance with the Net Income of each year that it's not withdrawalled by the owner or because are not paid dividends, to this case the owner only withdraw $10.000 of $50.000 generated during the year.