The best support against a 0% inflation target given by the economic literature is c. A 0% inflation target could lead to deflation.
<h3>Why is a 0% inflation target risky?</h3>
If 0% inflation is targeted, the policy might be so effective that inflation becomes negative and deflation happens.
When deflation happens, the economy will experience hardships with lower production levels that will impact other sectors of the economy.
Options for this question include:
a. It is undisputed that too little inflation interferes with the downward adjustment of real wages.
b. Moderate to high inflation is popular among consumers.
c. A 0% inflation target could lead to deflation
Find out more on deflation at brainly.com/question/13562161.
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The correct answer would be d
Answer:
The answer is: $350,000
Explanation:
When Alin Co. establishes the total cost of the building it just purchased, it must include all of the following:
- building's purchase value $300,000
- associated closing costs $30,000
- building improvements and renovations $20,000
So the total cost of the building is $300,000 + $30,000 + $20,000 = $350,000
Answer and Explanation:
a. The computation of the internal rate of return is shown below:
Given that
The expected cash inlfows would be $9,400 for four years each
Rate of return is 7%
The Initial investment is $30,455
Based on the above information
The net present value is
= $9,400 × PVIFA factor for 7% at 4 years - $30,455
= $9,400 × 3.3872 - $30,455
= $31,840 - $30,455
= $1,385
Now the present value factor is
= $30,455 ÷ $9,400
= 3.2399
Now based on the factor table, the rate should be 9% for four years
b. Yes depend upon the internal rate of return, the park co should make the investment
Answer:
they have the prime market I think? I don't see any options on here to know what direction the question is going.
