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3 years ago

Select the correct answer.

Business

2 answers:

Gre4nikov [31]3 years ago

4 0

Answer:

Prices increase, C

Explanation:

Inflation is when the value of a dollar, or other currency type, drops. This happens most commonly when more money is being printed. The more there is, the less it is worth. This causes prices to increase.

Hope this helps

taurus [48]3 years ago

3 0

Answer:

Explanation:

if inflation of SUPPLIES then price will decrease.

If inflation of MONEY then yea the price would rise.

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An economist would be more likely to argue against reducing inflation if she thought that a. the central bank lacked credibility

Fantom [35]

Answer:

b. the central bank lacked credibility and if bonds were usually indexed for inflation.

Explanation:

Economics can be classified into two (2) categories, namely;

1. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets.

Hence, it is focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.

2. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.

Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.

When this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation.

In conclusion, an economist is more likely to argue against a reduction in inflation if she thought that the central bank lacked credibility and if bonds were usually indexed for inflation.

8 0

3 years ago

John and his wife Martha get a divorce. Per the divorce settlement contract, Martha agrees to pay John alimony in the amount of

OleMash [197]

Answer:

c) the condition subsequent has occurred;

Explanation:

Since in the question it is given that the John and his wife Martha get a divorce and according to the divorce settlement contract she agrees to pay the alimony to John for $5,000 per month for his lifetime or until that time when he should remarry

If John remarries after three years, so the alimony benefits is ceased because the subsequent condition has occurred due to which he will not get the amount further in the future

7 0

3 years ago

A coupon bond that pays interest semiannually has a par value of $1,000, matures in 8 years, and has a yield to maturity of 6%.

vitfil [10]

Answer:

b. 1,062.81

Explanation:

the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:

$price=\frac{principal*coupon}{(1+i)^{1} }+ \frac{principal*coupon}{(1+i)^{2} } \frac{principal*coupon}{(1+i)^{3} }+...+\frac{principal+principal*coupon}{(1+i)^{n} }$

where: principal as said before is the value lended, coupon is the rate of interest paid, i is the interest rate and n is the number of periods

so applying to this particular exercise, as it is not said we will assume that 6% and 7% are interest rate convertible seminually, so the price of the bond will be:

$price=\frac{1,000*\frac{0.07}{2} }{(1+\frac{0.06}{2}) ^{1} } +\frac{1,000*\frac{0.07}{2} }{(1+\frac{0.06}{2}) ^{2} }+\frac{1,000*\frac{0.07}{2} }{(1+\frac{0.06}{2}) ^{3} }+...+\frac{1,000*\frac{0.07}{2} }{(1+\frac{0.06}{2}) ^{15} }+\frac{1,000+1,000*\frac{0.07}{2} }{(1+\frac{0.06}{2}) ^{16} }$

price=1,062.81

take into account that here we are asked about semianually payments, so in 8 years there are 16 semesters.

6 0

4 years ago

Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is

IRISSAK [1]

Answer:

$91 favorable

Explanation:

Variable overhead rate variance = (Standard variable overhead rate - Actual variable overhead rate) * Actual hour worked

Therefore, we have:

Variable overhead rate variance = ($8.00 - $7.90) * 910 = $91 favorable

Note: the variable overhead rate variance is said to be favorable becasue standard variable overhead rate is geater than the actual variable overhead rate.

6 0

3 years ago

Why is china australia's main trading partner

Nataly [62]

The reason for this is because they have developed a two way investment relationship. They also have conducted a free trade agreement. China is importing goods from Australia because they need Coal and Oil and Australia provides them with their needs and wants.

8 0

3 years ago