The GDP deflator for this year is calculated by dividing the used by the using and multiplying by 100. However, the CPI reflects only the prices of all goods and services; therefore the correct option is True.
The GDP deflator for this year is determined by multiplying by 100, then dividing the value of all goods and services produced in the economy this year at prices from this year by the value of all goods and services produced in the economy this year at prices from the base year. The CPI, however, only includes the costs of all consumer purchases of goods and services.
The CPI, a different economic term used to describe the consumer price index, and the GDP deflator are closely related. The GDP deflator can determine if there was inflation or deflation in the national economy for a specific year by using the CPI.
Therefore the correct option is True.
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The cost when someone borrows money from someone else is known as interest.
<h3>What is interest?</h3>
Interest rate is the cost of borrowing. It is the amount the borrower pays the lender for use of their funds. It is usually a function of the amount borrowed, length of the loan and the interest rate.
For example, if a person borrows $1000 for 1 year at an interest rate of 10, the interest that would be paid is: $1000 x 0.1 = $100.
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Answer:
Gap 4, which deals with lowering customer expectations, can be closed at any time. While the first three gaps are concerned with raising company performance to meet expectations, gap 4 aims to lower customer expectations to meet perceptions.
Explanation:
Answer:
b.The desired rate of return used to calculate the present value of the future cash flows is equal to 12%.
Explanation:
Net present value method: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.
Internal rate of return: It is that rate at which the net present value is equal to zero that means the initial investment and the present value of the future cash flows are equal
Answer:
The answer is True
Explanation:
The costs incurred by the U.S.-based MNC will be relatively higher.