Answer: increase in real interest rate
Explanation:
Negative inflationary surprises lead to an increase in the real interest rate. The real interest rate is simply defined as the rate of interest that a saver, investor, or a lender will receive after inflation ahs been allowed.
It should be noted that the real interest rate is the nominal interest rate minus inflation. Therefore, a negative inflationary surprises lead to a rise in the real interest rate.
Answer:
B. Creditors would gain at the expense of debtors.
Company A has: Reached the break-even point and Company A's contribution margin equals the fixed costs.
<h3>What is break even point?</h3>
Break even point is the point in which a company neither make gain or loss.
Based on the information given company A has reached the break-even point because there is no gain or loss.
Company A's contribution margin also equals the fixed costs.
Contribution margin=Sales-Variables cost
Contribution margin=$500,000-$350,000
Contribution margin=$150,000
Contribution margin equal fixed cost of the amount of $150,000.
Inconclusion Company A has: Reached the break-even point and Company A's contribution margin equals the fixed costs.
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