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mariarad [96]
3 years ago
15

g An investor wants to be able to buy 4% more goods and services in the future in order to induce her to invest today. During th

e investment period prices are expected to rise by 2%. Which statement(s) below is/are true: I. 4% is the desired real rate of interest. II. 6% is the approximate nominal rate of interest required. III. 2% is the expected inflation rate over the period. a. I, II and III are true b. I only c. II only d. I and II only e. III only
Business
1 answer:
Hitman42 [59]3 years ago
7 0

Answer: a. I, II and III are true

Explanation:

From the question, the statements that are true are:

I. 4% is the desired real rate of interest. II. 6% is the approximate nominal rate of interest required.

III. 2% is the expected inflation rate over the period.

4% is the desired real rate of interest because that's the rate at which the investor is willing to buy the goods in future.

2% is the expected inflation rate over the period because at that rate, there's expectation of future rise in price while 6% is the approximate nominal rate of interest required which is the addition of the 4% and the 2%.

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Ariana withdrew $400,000 out of her personal savings account and used it to start her new Internet cafe. The savings account pay
Vikki [24]

Answer:

The Ariana's accounting profit for the year was $6,000

Explanation:  

Accounting Profit : The accounting profit is that profit which records the difference of total revenues and total direct cost.

Where,

Total revenues includes sales revenues

And total cost includes monetary cost, etc.

So,

Accounting profit = Total revenues - Total cost

where

Total revenues = 2,000 × $2.5 + 4,000 ×$2.5 = $15,000

Monetary cost = $9,000

So,

Accounting profit = $15000 - $9000 = $6,000

Hence, the Ariana's accounting profit for the year was $6,000

7 0
3 years ago
A creamery shop sells its special ice cream for $4.50 a quart. It costs them $3.00 a quart to make it. The daily demand for this
jenyasd209 [6]

Answer and Explanation:

The computation of the service level and the corresponding optimal stocking level is shown below:

Given that

Selling price = SP = $4.50

Cost price = CP  = $3.00

So,

Salvage value =  V  = $1.50

Average daily demand (d) = 35 quarts

The  standard deviation of daily demand  = 4 quarts

based on the above information

Overage cost = (Co) is

= CP - V

= $3.00 - $1.50

= $1.50

Now

Underage cost= (Cu)

= SP - CP

= $4.50 - $3.00

= $1.50

So,  

Service level is

= Cu ÷ (Co + Cu)

= 1.50 ÷ (1.50 + 1.50)

= 1.50 ÷ 3.00

= 0.50

= 50%

Now

At 50 % service level, the value of Z is 0

So,

Optimal stocking level is

= d + Z × standard deviation

= 35 + (0  × 4)

= 35 + 0  

= 35 quarts

7 0
3 years ago
True or False - Taxation is the most obvious disruption to the circular flow free market model.
aniked [119]

Answer:

True

Explanation:

Because it is

8 0
3 years ago
During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting l
alexandr1967 [171]

Answer:

The correct answer is letter "C": Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.

Explanation:

Short-term disability is the type of employee insurance plan that gives compensation to the workers in front of injuries that are not related to work or illnesses that do not allow employees to develop their regular duties. The coverage starts between 1 to 14 days after workers suffer a condition that does not allow them to work. This type of benefit has a monthly limit which is an advantage for the firm, being this the reason why most employers offer short-term disability coverage.

5 0
2 years ago
The Widner Company manufactures two products: Stainless Serving Spoons and Stainless Serving Forks. The costs and revenues are a
Lady bird [3.3K]

Answer:

Option D. 5,400 9,000

Explanation:

The computation for the number of units produced is shown below:

But before that first determined the following calculations

Particulars             Spoons                  Forks

Selling Price          $150.00               $88.00

Less:

Variable cost per unit    $80.00          $42.00

Contribution margin

per unit                         $70.00            $46.00

Machine hour per unit    5                               3

Contribution margin

per machine hour                $14.00            $15.33

As we can see that the contribution margin per machine hour of the fork is greater so it should be the first utilized

For 9,000 forks, total machine hours is

= 9,000 × 3

= 27,000

Now no of the spoons produced would be

= 27000 ÷ 5

= 5,400

4 0
3 years ago
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