Answer:
shift demand and supply for loanable funds to the right (up), increasing interest rates.
Explanation:
According to the Fisher hypothesis when there is an increase in the expected inflation there is an equal increase in nominal interest rates.
As interest rates rise demand and supply for loanable funds will rise. This is illustrated in the attached diagram. Interest rate moves from i0 to i1.
Inflation is a reduction in the purchasing power of money. When inflation increases money regulation agencies reduce supply of money as a way to reduce price increase. This in turn reduces the amount of loanable funds commercial banks have to give out
Answer:
A. A toothpaste manufacturer adds a new line of toothpaste (that contains baking soda) to its product line.
Explanation:
Market cannibalization is explained to be a loss in sales caused by a company's introduction of a new product that displaces one of its own older products.
Introduction of a new toothpaste containing baking soda is a perfect example, because it will reduce or alter sales in the other brand units.
The cannibalization of existing products leads to no increase in the company's market share despite sales growth for the new product. Market cannibalization can occur when a new product is similar to an existing product, and both share the same customer base. Cannibalization can also occur when a chain store or fast food outlet lose customers due to another store of the same brand opening nearby.
Answer:
6.53%
Explanation:
For computing the after cost of debt we need to use the RATE formula i.e to be shown in attached spreadsheet. Kindly find it below:
Given that,
Present value = $1,050.76
Future value or Face value = $1,000
PMT = 1,000 × 10% = $100
NPER = 5 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying this above formula
1. The pretax cost of debt is 8.70
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 8.70% × ( 1 - 0.25)
= 6.53%
Answer:
False
Explanation:
Forgetting curve depicts how a person tends to forget about a particular information over time when there is no attempt to retain it.
Normally memory retention declines over time without repetition.
The lower the forgetting rate of customers associated with a brand the lower the number of repetition required to retain the information.
When rate of forgetting is high customers easily forget about the product. So there is need for higher repetition to keep the information fresh in their minds.
Answer:
The answer is B.
Explanation:
Because it is 9 months, the interest to be used cannot be 10% instead, it will be 9months/12months x 10%
0.75 x 10%
=7.5%
Interested on the borrowed money is 7.5% x $9,000
$675
On April 1, 2019, Herzog will the money lent plus interest.
So we have $9,000 + $675
=$9,675 and because Herzog is receiving, we debit cash account.
Interest revenue will be
$675/3months
=$225.
This will be credit
Interest receivables will be $675 - $225 = $450
This will also be in credit side
