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
KiRa [710]
3 years ago
14

In countries where inflation is expected to be high, interest rates also will be high, because investors want compensation for t

he decline in the value of their money. This relationship is referred to as the _________.
Business
1 answer:
choli [55]3 years ago
4 0

Answer:

The answer is Fisher effect

Explanation:

The Fisher Effect is an economic theory depicts the relationship between inflation and interest rates. Real interest rates decreases as inflation increases

The Fisher Effect's formula is:

Real interest rate = the nominal interest rate - the expected inflation rate.

Therefore, Fisher effect occurs in countries here inflation is expected to be high, interest rates also will be high, because investors want compensation for the decline in the value of their money

You might be interested in
Complete problem: Total Net Operating Capital XYZ, Inc. reported $20 million in operating current assets, $25 million in net fix
Hitman42 [59]

Answer:

$14 million

Explanation:

Operating working capital  = Operating current assets - Operating current liabilities

Operating working capital = $20 million - $6 million

Operating working capital = $14 million

The total net operating capital that XYZ, Inc. has is $14 million

7 0
4 years ago
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant ra
mariarad [96]

Answer:

$8,222

Explanation:

The computation of increase in net operating income is shown below:-

Contribution margin per unit = Contribution margin ÷ Sales volume units

= ($31,500 ÷ 1,000)

= $31.5

Increase in net operating income = Contribution margin - Fixed expenses

= (1,001 × $31.5) - $23,310

= $8,222

Therefore for computing the increase in net operating income we simply applied the above formula.

6 0
3 years ago
Match the accounting terms with the corresponding definitions
Firlakuza [10]

Answer:

Explanation:

1. Posting Transferring amounts from the journal to the ledger 

2. Account A detailed record of all increases and decreases that have occurred in a particular asset, liability, or equity during a period

3. Debit Left side of a T-account 

4. Journal A record of transactions in date order 

5. Charts of accounts A list of all accounts with their account number

6. Trial balance  A list of all accounts with their balances at a point in time

7. Normal balance Side of an account where increases are recorded 

8. Ledger A journal entry that is characterized by having multiple debits and/or multiple credits 

9. Credit Right side of a T-account 

10. Compound journal entry The record-holding all the accounts of a business, the changes in those accounts, and their balances

8 0
4 years ago
Read 2 more answers
Which of the following is associated with the market development strategy?
pantera1 [17]

Answer: Option (c) is correct

From the given option the following is associated with the market development strategy: <em>Adding new features to products.</em>

Market development refers to the technique under growth strategy that visualize and establish new market segments for their products. This terminology targets non-buying individuals in targeted segments. This also targets new individuals in new segments.

4 0
4 years ago
A firm emphasizing long-term employment, collective decision making, individual responsibility, slow evaluation and promotion, i
ziro4ka [17]

Answer: type z firm

                     

Explanation: In simple words, type Z firm refers to the firm structure under which the management of the organisation focuses on factors like employment stability, high productivity and high satisfaction and morale of employees.

The firms employing such structure believes that employees are the most important resource and without their satisfaction operational effectiveness and stability cannot be achieved.

6 0
3 years ago
Other questions:
  • Jazz Co. pays a dividend of $2,300 Required: For the transaction above, complete the following: (a) Select the accounts that are
    5·1 answer
  • When a firm is operating at an efficient scale,
    14·1 answer
  • Consider a small economy composed of six people: Musashi, Lucia, Paolo, Amy, Van and Sharon. Each person's employment status is
    9·1 answer
  • Ben and Carla Covington plan to buy a condominium. They will obtain a $229,000, 20-year mortgage at 5.0 percent. Their annual pr
    5·1 answer
  • According to the presentation, the first step in making a major purchase is:
    14·2 answers
  • Explain why economists are concerned with relative scarcity as opposed to absolute scarcity?​
    13·2 answers
  • Inse Corporation uses time and material pricing. The repair department expects 20,000 direct labor hours of activity and has the
    6·1 answer
  • Parco, Inc., a U.S. entity, has a 100% owned subsidiary, Subco, Inc., located in the country of Eastlaco. In which one of the fo
    5·1 answer
  • If fixed costs are $821,000 and variable costs are 63% of sales, what is the break-even point in sales dollars
    7·1 answer
  • What is important to remember when cutting curly hair
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!