Answer:
The initial cost of the bread machine is $37,500
Explanation:
Initial cost is the sum of all the expenditure incurred from the purchase of asset to make it usable for the business. It includes purchase price, transportation cost, testing costs etc.
Bread Machine
Purchase price $30,000
Freight $2,000
Installation $4,000
Testing <u>$1,500 </u>
Total Initial Cost <u>$37,500</u>
Answer:
A. Long term U.S. Government bonds
Explanation:
A. Long term U.S. Government bonds
For this case that's the best option since by a general rule when we have a deflation the interest rates tend to decrease. Usually the long term investments have fixed rates and fixed payments that can be accumulated over the time.
B. Real estate
Not a good option since when we have deflation the real state prices tend to decrease as the good and services in order to mantain the sales.
C. Gold
No possible when we have deflation all the prices of good and services tend to decrease and the gold is an example of this. So is not a good option to invest.
D. Large Capitalization stocks
When we have stocks and we have a deflation we will have a depreciation of the stocks since the companies due to the deflation need to cut the prices to mantain the sales and make profits. So this one is not a good option for this case.
Answer:
franchises
Explanation:
A franchise is a business model where the franchisee acquires the right to a business logo, name, and model from the franchisor. The franchisor is usually an established, successful, and popular business. The franchisee gets a license to operate an independent outlet that is similar in all aspects to the franchisor's business.
The franchise business takes advantage of the franchisor brand name popularity to acquire customers and thereby increase its chances to succeed. Mcdonald and Starbucks are examples of popular franchise businesses. This business model applies to all industries. Restaurants, Gas stations, Pharmaceuticals, and other retail outlets ave embraced the franchising business model.
In the short run increase in the growth rate of the quantity of money decreases the nominal interest rate and in the long run it increases the nominal interest rate.
Explanation:
When there is increase in the growth rate of money supply people also start spending more.
When the nominal rate that is the interest rate decreases people demand for more money as a result the demand curve for money shifts towards its right and on the other hand when the nominal rates increases the demand for money falls and people starts saving the money as a result the demand curve for money moves towards left.
