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4 years ago

If the inflation rate increases faster than their income, people will most likely

2 answers:

6 0

If the inflation rate increases faster than people's income (this is also known as hyperinflation), people will spend a HIGHER percentage of their income on basic needs. This is due to the fact that prices are higher (because of rising inflation).

For example, if a shirt costs $1.00 and a bag of chips costs $0.50, a woman could buy a shirt and bag of chips with $1.50 (let's pretend that her income is $1.50). However, if inflation causes the price of a shirt to rise to $1.50, and chips to $1.00, then the woman can only buy one of those things with $1.50. And she would spend it on the basic need; the shirt.

Hope this helps, let me know if you have any questions!

bija089 [108]4 years ago

5 0

I think you forgot to attach the options along with the question. i am answering the question based on my knowledge and research. If the inflation rate increases faster than their income, people will most likely <span>spend a lower proportion of their incomes on basic needs. I hope the answer has come to your help.</span>

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Sosa Company reported net income of $190,000 for 2017. Sosa Company also reported depreciation expense of $35,000 and a loss of

mart [117]

Answer:

$228,000

Explanation:

Preparation of the operating activities section of the statement of cash flows for 2017 for Sosa Company

Sosa Company operating activities section of the statement of cash flows for 2017

Net income $190,000

Add:Depreciation expenses $35,000

Loss on disposal of plant assets $5,000

Increase in accounts payable $17,000

Less: Increase in accounts receivable($15,000)

Increase in prepaid expenses ($4,000)

Net cash flow of the operating activities $228,000

Therefore the operating activities section of the statement of cash flows for 2017 for Sosa Company will be $228,000

7 0

4 years ago

Using the dividend growth model, explain why a firm would be hesitant to reduce the growth rate of its dividends.

Anna007 [38]

Answer:

If a firm decreases its sustainable growth rate (g), the price of their stock will probably decrease. I will use the following example:

P₀ = Div₁ / (Re - g)

Div₁ = $2
Re = 12%
g = 5%

P₀ = $2 / (12% - 5%) = $28.57

if the growth rate g decreases to 2%, and the rest remains unchanged, then

P₀ = $2 / (12% - 2%) = $20

4 0

3 years ago

Used in noncollusive oligopolistic markets, the practice of a dominant firm to signal upcoming price changes to other firms in t

Harlamova29_29 [7]

Used in noncollusive oligopolistic markets, the practice of a dominant firm to signal upcoming price changes to other firms in the industry is known as price leader.

<h3>What is oligopoly market?</h3>

This is a market structure, whereby few players are having advantage over others in the same industry.

Oligopoly occurs when most products or services are provided by only a few large companies or business. In other words, it is a market structure where a few large firms dominate an industry; which are airlines, oil and computers.

Here, economy in a country or all around the world is controlled by big business, and therefore small or emerging business cannot compete due to high costs and loyalty of customers to important branches or producers.

Learn more about oligopoly market here: brainly.com/question/13635083

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4 0

2 years ago

Assume there is a fixed exchange rate between the Canadian and U.S. dollar. The expected return and standard deviation of return

gregori [183]

Answer:

The expected return on the portfolio is 15.5%.

Explanation:

The expected return on portfolio formula requires multiplying every asset's weight in the portfolio by their respective expected return, then summing up all values together.

$\text{Expected Return}=W_{A}\cdot R_{A}+W_{B}\cdot R_{B}$

Here,

<em>W</em> = weight of the respective asset

<em>R</em> = expected return of the respective asset

It is provided that:

The expected return on the U.S. stock market is 18%.

The expected return on the Canadian stock market is 13%.

The proportion of money invested in both stock markets is 50%.

Compute the expected return on the portfolio as follows:

$\text{Expected Return}=W_{U}\cdot R_{U}+W_{C}\cdot R_{C}$

$=(0.50\times 0.18)+(0.50\times 0.13)\\=0.09+0.065\\=0.155$

Thus, the expected return on the portfolio is 15.5%.

4 0

3 years ago

PLS HELP ASAP! GIVING BRAINLIEST!!<br><br> I need answers to 1 & 2!!

Artyom0805 [142]

Answer:

1. 7.2

2. 9

Explanation:

take 72 and divide by number of years

72/x= ROI

7 0

3 years ago