1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nady [450]
3 years ago
10

When the rate of inflation is equal to the interest rate on beth's deposit, the purchasing power of her depositrises over the co

urse of the year?
Business
1 answer:
Readme [11.4K]3 years ago
4 0
Her purchasing power over the year remains the same.

Since the prices (inflation) rise with the same pace as the value of the money (interest rate), Beth can keep buying the same amount of products. Her purchasing power remains equal.
You might be interested in
Which of the following is not one of the different classes of stocks A. Growth stock B. Preferred Stock C. Common stock CSR
bezimeni [28]

Answer:

A. Growth Stock

Explanation:

Stocks are divided into classes based upon their features with respect to the rights they carry. Usually stocks are of two classes:

  1. Common Stock
  2. Preferred Stock

While the former carry voting rights and avail dividends as per the profitability of the company, the latter carry preferential rights with respect to principal repayment in the event of winding up apart from carrying a fixed rate of dividend which must be paid periodically.

Growth Stocks refer to those stocks which yield higher rate of growth than average market rate but don't usually carry a right to dividend. Growth stocks relate to capital appreciation.

7 0
3 years ago
In the short run or in shorter time periods supply curves tend to:_______
svlad2 [7]

Answer:

b) be more inelastic than supply curves that apply to longer periods of time.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply. In order to understand both short-run economic fluctuations and how the economy move from short to long run, we need the aggregate supply and aggregate demand model.

Aggregate supply (AS) refers to the total quantity of output (goods and services) that firms are willing to produce and sell at a given price in an economy at a particular period of time.

An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.

In the short run or in shorter time periods supply curves tend to be more inelastic than supply curves that apply to longer periods of time.

This ultimately implies that, a rightward shift in the aggregate supply (AS) curve causes output to increase and result in a price fall (lower price), in the short run.

However, in the long-run or in longer time periods, supply curves tend to be fairly elastic than supply curves that apply to shorter periods of time.

3 0
3 years ago
Describe Philosophy of Postmodernism and analyze their key features
Dennis_Churaev [7]

Explanation:

Postmodernism, also spelled post-modernism, in Western philosophy, a late 20th-century movement characterized by broad skepticism, subjectivism, or relativism; a general suspicion of reason; and an acute sensitivity to the role of ideology in asserting and maintaining political and economic power.

Its main characteristics include anti-authoritarianism, or refusal to recognize the authority of any single style or definition of what art should be; and the collapsing of the distinction between high culture and mass or popular culture, and between art and everyday life.

5 0
2 years ago
7. You own a portfolio that has $1,750 invested in Stock A and $3,950 invested in Stock B. If the expected returns on these stoc
I am Lyosha [343]

Answer:

12.46%

Explanation:

Data provided:

Amount invested in Stock A = $1,750

Amount invested in stock B = $3,950

Expected rate of return on stock A = 9%

Expected rate of return on stock B = 14%

Thus,

Expected amount of return on stock A

= Amount invested in Stock A × Expected rate of return on stock A

on substituting the respective values, we have

= $1,750 × 0.09 = $157.5

and,

Expected amount of return on stock B

= Amount invested in Stock B × Expected rate of return on stock B

on substituting the respective values, we have

= $3,950 × 0.14 = $553

Therefore, the total expected return from both the stocks = $157.5 + $553

= $710.5

Now,

the total amount invested = $1,750 + $3,950 = $5700

Hence, the expected rate of return on the portfolio

= \frac{\textup{Total expected retun}}{\textup{Total amount invested}}\times100

on substituting the values, we get

= \frac{710.5}}{5700}\times100

the expected rate of return on the portfolio = 12.46%

7 0
3 years ago
Define opportunity cost, please!<br><br> Thank you!
Brut [27]

Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

6 0
2 years ago
Read 2 more answers
Other questions:
  • Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direc
    14·1 answer
  • Total assets of Charter Company equal $700,000 and its equity is $420,000. What is the amount of its liabilities? b. Total asset
    5·1 answer
  • A clothing manufacturer makes both shirts and shorts. The sales price for shirts is $24 with variable costs of $10 and shorts ha
    12·1 answer
  • To create a budget: Multiple Choice From the Banking Menu, select Planning &amp; Budgets &gt; Budgets From the Company Menu, sel
    6·1 answer
  • This month, a company receives $5,000 from a regular customer, of which $3,000 is for products delivered last month and $2,000 i
    14·1 answer
  • The objective of a competitive strategy is to establish a competitively powerful value chain. grow revenues at a faster annual r
    13·1 answer
  • Consumers should be concerned about high interest rates because high interest rates __________.
    15·1 answer
  • Consider the following list of accounts:
    11·1 answer
  • Housing subsidies for low-income households:__________.
    10·1 answer
  • Once production is completed in all processing departments, production costs are transferred to ______.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!