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Anettt [7]
3 years ago
10

For this question, assume that the Phillips curve equation is represented by the following: πt − πt−1 = (m + z) − αut. Which of

the following will cause a reduction in the natural rate of unemployment? (a) an increase in m (b) an increase in z (c) an increase in α (d) an increase in actual inflation (e) an increase in expected inflation
Business
1 answer:
likoan [24]3 years ago
3 0

Answer:

Correct option is C

Explanation:

Increase in \alpha decreases πt - π(t-1) which shows decrease in natural rate of unemployment.

Phillips bend clarifies the connection between expansion rate and joblessness rate. As indicated by it there is a reverse connection between the joblessness rate and swelling rate. It implies there is an exchange off among expansion and joblessness rate.  

The strategy ramifications of Phillips bend is that administration can't lessen swelling and joblessness together. It joblessness decreases, at that point the economy must acknowledge higher expansion. Then again, on the off chance that economy lessens expansion, at that point it must acknowledge higher joblessness.  

When there is synchronous change in the swelling rate and joblessness rate then this is an instance of development along the short-run Phillips bend.  

Then again, when either joblessness rate or swelling rate stays unaltered while different changes then it prompts moving of short-run Phillips bend.

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Answer:

The correct answer is letter "B": The estimated fair value of the options.

Explanation:

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5 0
3 years ago
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8 0
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A.8<br>B.15<br>C.26<br>D.52<br><br><br><br>if anyon can help i would be so happy
Alika [10]
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3 0
3 years ago
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AleksAgata [21]
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4 0
2 years ago
XYZ Company earned operating income of $1,500,000 before income taxes. Capital employed equaled $10,000,000, of which $1,000,000
m_a_m_a [10]

Answer:

The answer is creating wealth, with the economic value added is $390,000

Explanation:

The company WACC is: Percentage of mortgage bond in capital employed x Cost of mortgage bond x ( 1 - tax rate) + Percentage of unsecured bond in capital employed x Cost of unsecured bond x ( 1 - tax rate) + Percentage of common stock in capital employed x cost of common stock

In which:  Percentage of mortgage bond in capital employed = 1,000,000/10,000,000 = 10%

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Thus, WACC = 10% x 8% x ( 1- 40%) + 30% x 9% x (1-40%) + 60% x 15% = 11.10%.

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3 0
3 years ago
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