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PIT_PIT [208]
3 years ago
8

Rob is a business analyst who argues that investing makes more profit when the inflation rate is high. He points to the high ret

urns in the 1980s when inflation was around 12% and returns were as high as 20% or higher. Evaluate Rob's claim.
Select the best answer from the choices provided.
A.
Rob is correct because stocks and other goods increase in value due to inflation.
B.
Rob is confusing the nominal rate of return with the real rate of return.
C.
Rob is forgetting that inflation causes most businesses to do poorly.
D.
Rob is correct because inflation enables dollar profits to buy more goods.
Business
1 answer:
kirill115 [55]3 years ago
4 0

B.  Rob is confusing the nominal rate of return with the real rate of return.

Nominal rate of return is the "face value" of returns, but the real rate of return factors in the negative effect that inflation has on buying power. Inflation takes away from any earnings because it reduces the value of money.

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In economics, the cost of something is a. always measured in units of time given up to get it. b. the dollar amount of obtaining
Paha777 [63]

Answer:

The correct answer is C

Explanation:

Economies is the study of how the society uses the resources which are limited and it deals with the consumption, production as well as distribution of the goods and services.

And under the economics the cost of something like or product is defined as what the person give up in order to get something.

For example, a person wants to purchase to product, he needs to give up the money against it in order to have the product or item with him.

4 0
3 years ago
Geraldo is a vice president at Magnolis Inc. He, along with a few other individuals in his rank, is responsible for setting the
jok3333 [9.3K]

Answer: Top management

Explanation: There are several stages of management in a company to most important of them is the top management. The decisions by top managers affect the organisation as a whole and the success and failures of the  organisation highly depends on their actions. Examples of top management are directors and vice president .

In the above case, Geraldo is the vice president of the company and also he is responsible for determining the directions of operations of the company thus we can consider him in the top management.

7 0
3 years ago
Suppose that two factors have been identified for the U.S. economy: the growth rate of industrial production, IP, and the inflat
DENIUS [597]

Answer:

23.3%

Explanation:

Expected return refers to the anticipated profit or loss of financial investment. Essentially, it's the value of the return that investors anticipate. We can find the expected return by using the formula given below

Δ IR = 5-5% - 2% = 3.5%

Δ IP = 6% - 4% = 2%

Formula

Expected return = Expectedreturn(previous year) + (betaIP x Δ IP) + (betaIR x Δ IR)

Expected return = 12% + (2.5 x 2%) + (1.8 x 3.5%)

Expected return = 23.3%

5 0
3 years ago
Social security and medicare are
Ber [7]
Social safety programs that Americans pay into during their working years through taxes. Both are designed to assist older Americans and distribute benefits to the disabled and their families.

Hopes This Helps
4 0
3 years ago
Read 2 more answers
Suppose you hit a 0.058-kgkg tennis ball so that the ball then moves with an acceleration of 10 m/s2m/s2. If you were to hit a b
daser333 [38]

Answer:

1 m/s2

Explanation:

The force on a body ( which is a pull or push) is given by the formula

F = Ma

where F is the force, a is the acceleration and M the mass of the body

Therefore, given that the same force is applied to both bodies,

0.058 × 10 = 0.58 × a

a = 0.058 × 10/0.58

a = 1  m/s2

The acceleration of the basketball will be 1 m/s2.

8 0
3 years ago
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