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3 years ago

A short-run phillips curve shows an inverse relationship between

Business

1 answer:

photoshop1234 [79]3 years ago

6 0

Answer: unemployment rate and the inflation rate.

Explanation:

The Phillips curve shows the relationship that exists between inflation and unemployment rates. The short-run Phillips curve looks like an L-shape and it reflects the inverse relationship between the two variables i.e unemployment and inflation.

As unemployment rates rises, inflation reduces and as unemployment rates reduces, inflation increases. A reduction in the aggregate supply will lead to a rightward shift the short run Phillips Curve.

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Because the Rubber Division sustained a loss, Vanikoro is considering the elimination of this division. All of the division's tr

Anna11 [10]

Answer:

Decrease in Net operating income ($30,000)

Explanation:

The computation of the change in net operating income is shown below:

Particulars Rubber Division

Lost of Contribution margin ($100,000)

Savings from avoidable fixed costs :

Traceable fixed costs $70,000

Decrease in Net operating income ($30,000)

We simply deduct the traceable fixed cost from the loss of contribution margin so that the change in net operating income could come

7 0

3 years ago

The Coca-Cola Company owns 32 percent of the voting stock of Coca-Cola FEMSA, acquired at book value. Assume that Coca-Cola FEMS

hichkok12 [17]

Answer:

December 31, 2013, revenue from investment in Coca Cola FEMSA

Dr Investment in Coca Cola FEMSA 1,635,000

Cr Investment revenue 1,635,000

Explanation:

Under the full equity method, when Coca Cola FEMSA reports net income, the investment account will increase in a proportional way, and that increase is considered investment revenue.

E.g. Coca Cola Company owns 32% of stocks and reported net income is $5,000,000, so investment revenue = $5,000,000 x 32% = $1,600,000

But we must also include any realized/unrealized profits on intercompany transactions:

realized profits = markup x January 1 inventories = 35% x ($1,350,000 - $1,350,000/1.35) = $350,000

unrealized profits = markup x December 31 inventories = 35% x ($1,215,000 - $1,215,000/1.35) = $315,000

total investment revenue = % of net income reported + realized profits - unrealized profits = $1,600,000 + $350,000 - $315,000 = $1,635,000

The journal entry should be:

December 31, 2013, revenue from investment in Coca Cola FEMSA

Dr Investment in Coca Cola FEMSA 1,635,000

Cr Investment revenue 1,635,000

3 0

3 years ago

You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of th

lys-0071 [83]

Answer:

650

Explanation:

A call option is an option to buy a product or asset at a stated price at a later date. The risk of call option is capped at premium for buying the option. Wildwood corporation will incur cost of 650 to establish the bull money spreads with calls.

8.5 +4.5 = 13

13 * $50.00 = $650

3 0

3 years ago

Help with these 3 economics questions plzzzz

Firlakuza [10]

Answer:

Explanation:

Various educators teach rules governing the length of paragraphs. They may say that a paragraph should be 100 to 200 words long, or be no more than five or six sentences. But a good paragraph should not be measured in characters, words, or sentences. The true measure of your paragraphs should be ideas.

5 0

3 years ago

A homeowner could take out a 15-year mortgage at a 5.5 percent annual rate on a $195,000 mortgage amount, or she could finance t

Montano1993 [528]

Answer:

The amount of total interest over the entire mortgage period could she save by financing her home with the 15-year mortgage is $138,612

Explanation:

First find the total interest on the 30-year mortgage:

PV = 195,000

N = 360

FV = 0

I = 6.1/12 = 0.5083

195,000 = PMT × PVIFA (0.061/12, 360 months); (in excel)

PMT of 1,181.69 × 360 = 230,408;

Next find the total interest on the 15-year mortgage:

PV = 195,000

N = 180

FV = 0

I = 5.5/12 = 0.4583

195,000 = PMT × PVIFA (0.055/12, 180 months); (in excel)

PMT of 1,593.31 × 180 = 91,796;

The amount of interest saved is: $230,408.34 − $91,796.29 = $138,612.05

7 0

3 years ago