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Mamont248 [21]
3 years ago
11

What is the Fisher effect? the tendency of nominal interest rates to rise with higher expected inflation rates the tendency of r

eal interest rates to fall with higher expected inflation rates the tendency of nominal interest rates to fall with higher expected inflation rates the tendency of real interest rates to rise with higher expected inflation rates
Business
1 answer:
ahrayia [7]3 years ago
6 0

Answer:

The Tendency of Real Interest Rates to fall as Inflation increases.

Explanation:

The Fisher Effect examines the relationship between inflation, nominal and real interest rates. The real interest rate is obtained by deducting inflation rate from nominal interest rate. Except nominal interest rate increases at the same rate as inflation, real interest rate would decrease.

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Why is it important for the ALSA management team to understand the importance of social media in their work?
Bad White [126]

Answer: the ALSA management team must understand the importance of social media in their work because of globalization. People can work from one country to another country through social media. Through social media you can get answer to your problems at work quickly.

Explanation:

7 0
3 years ago
Read 2 more answers
Consider the case of a good with external benefits. If you plant trees in front of your house, the neighborhood is more attracti
Veronika [31]

Answer:

1. b. Tax homeowners who plant trees.

2. Win - society and consumer

   Loose - tax payers and producers.

Explanation:

1. a). If the good creates a positive externalities, then the \text{private benefits from the good are less than the social benefits} from the good.

In the context, the following would not help to correct the problem :

Taxing the homeowners who plant the trees.

If the government taxes or takes some money form the people or the house owners who plant trees in their neighborhood will discourage the people to plant the trees and would not help in correcting the problem.

2. If the government pays for the program that helps to increase the planting the trees, then,

the one who will win from this program is : society and the consumers

the one who will loose : tax payers and the producers as the government would impose more tax in order to fuel the project.

6 0
3 years ago
Because the company was angered by the actions of its resellers. Acme Manufacturing decided to slow down deliveries and postpone
Natasha_Volkova [10]

Answer:

B) coercive power.

Explanation:

There are two ways of influencing others to follow the instruction or to get the process in the right order.Those two ways are: Reward power and coercive power.

Coercive power: It is the ability of the authority to use power or force against people or subordinates to follow the instruction or to get them disciplined. It is an act of punishment for committing errors so that it does not get repeated.

In the given case, the manufacturer decided to punish resellers for their action. As Manufacturing decided to slow down deliveries and postpone product availability to these resellers.

8 0
3 years ago
Which of the following actions has NO impact on your credit score?
Romashka-Z-Leto [24]
When you inquire about a credit card charge, then it has no impact on your credit score. The correct option among all the options given in the question is option "A". Nowhere around the world can there be any rules that can deduct the credit rating of a person for inquiring about a credit card charge. It would be absolutely ridiculous.
8 0
3 years ago
Identify the inventory costing method best described by each of the following sepatate statements. Assume a period of increasing
MrMuchimi

Answer:

1. Yields a balance sheet inventory amount often markedly less than its replacement cost.  LIFO

2. Results in a balance sheet inventory amount approximating replacement cost.  FIFO

3. Provides a tax advantage (deferral) to a corporation when costs are rising.  LIFO

4. Recognizes (mulches) recent costs against net sales.  LIFO

5. The preferred method when each unit of product has unique features that markedly effect cost. WEIGHTED AVERAGE

Explanation:

1. LIFO yields a balance sheet inventory amount often markedly less than its replacement cost.  The reason is because the in a period of rising costs, since the last stock of goods bought are sold first, this will result in the remaining stock of goods to be of lower costs as they had been bought at an earlier date at a cheaper rate.

2. FIFO results in a balance sheet inventory amount approximating replacement cost because the first set of goods purchased are sold first; and if the assumption holds that costs are rising with time, then the balance stock of goods would have been bought at a later date at a higher cost, hence the value of the balance (ending) inventory will be almost equal to its replacement cost.  

3. LIFO provides a tax advantage (deferral) to a corporation when costs are rising because it results in a lower ending inventory value since the more expensive inventory has been sold. Hence, the closing stock and Net income will be low and income tax will be low.

4. LIFO matches recent costs against net sales because the 'cost of sales' are made up of the recent purchases which are sold first

5. The preferred method when each unit of product has unique features that markedly effect cost is the WEIGHTED AVERAGE because it calculates the average period cost of all goods in stock and apportions the total to individual items.

6 0
3 years ago
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