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olga_2 [115]
3 years ago
12

Assume that Zac gets a fixed-rate loan from a bank when the expected inflation rate is 4 percent. If the actual inflation rate t

urns out to be 2 percent, who benefits from this: Zac, the bank, neither, or both? Explain.
Business
1 answer:
Aleonysh [2.5K]3 years ago
8 0

Answer:

The bank

Explanation:

The bank benefits because when setting up the loan, the determined rate accounted for a 4% reduction in purchasing power, while the actual reduction in purchasing power was 2%. Therefore, Zac will be paying back "money that is worth more" and the bank benefits.

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Retail companies try to find a. the least profitable method of transferring goods from warehouses to stores. b. the least costly
Lapatulllka [165]

Answer:

b. the least costly method of transferring goods from warehouses to stores.

Explanation:

The retail company should find the most efficient and cost effective means of transportation.

The the least profitable and most costly method of transferring goods from warehouses to stores would reduce the profit margins of retail stores and the stores would want to maximise profit.

3 0
3 years ago
$30,322 $73,800 $75,600 $76,900 Lasseter Corporation has provided its contribution format income statement for August. The compa
melisa1 [442]

Answer:

$75,600

Explanation:

We divide the total sales with the number of units to get the unit price . Similarly we get the unit price for the variable costs. But as the fixed costs remain constant they will not change. We get the contribution margin  =$75,600

Lasseter Corporation

Contribution Format Income Statement for August

Sales (4,200 units) $ 127,100 /4100= $31 * 4200  $ 130200

Variable expenses (53,300/4100)*4200 = $ 54600

Contribution margin 75,600

Fixed expenses 44,200

Net operating income $ 31,400

Lasseter Corporation

Contribution Format Income Statement for August

Sales (4,100 units) $ 127,100

Variable expenses 53,300

Contribution margin 73,800

Fixed expenses 44,200

Net operating income $ 29,600

3 0
3 years ago
Which of the following is true of open market operations? Select the correct answer below: Open market operations involves the b
zhenek [66]

Answer:

The option that says; "Open market operations involve the purchase and sale of government securities".

Explanation:

The term "open market operation" simply has to do with monetary policy. Open market operation is usually considered as a tool in economics and It is a commonly used by central banks of countries or federal reserves.

The main thing that happens in open market operation is that Government securities are being bought and sold that is the purchase and sale of government securities. The selling and buying of government securities is to make sure that there is reduction in the way money is been supplied.

3 0
3 years ago
Read 2 more answers
Which three factors make starting a business a highly risky investment?
Alika [10]
The correct options are B, C and E.
Starting a business can be a risky move because of some elements which are involved in creating a new business. For instance, large amount of capital is needed to start a typical business and the uncertain conditions which prevails in the business world can make one to lose one's capital in no time at all. The extent to which assets can be converted to cash is also one of the risks that one must considered.
3 0
3 years ago
In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3 percent per year, the money stock grows by 8 pe
WITCHER [35]

Answer:

a) 8%

b) 5%

c) 4%

Explanation:

Given:

Growth in real GDP = 3%

Growth of money stock = 8%

Nominal interest rate = 9%

Now,

(a) As per Classical Quantity Theory of Money

Money Supply (M) × Velocity (V) = Price level (P) × Real GDP (Y)

also,

Nominal GDP = P × Y

Change in M + Change in V = Change in P + Change in Y

Since,

V = Constant

thus, Change in V = 0

Change in M = Change in P + Change in Y

Change in P + Change in Y = Change in Nominal GDP = Change in M

thus,

Change in Nominal GDP = 8%  

(b)

8% = Change in P + Change in Y

8% = Change in P + 3%

Change in P = Inflation Rate = (8 - 3)% = 5%

(c) Real interest rate = Nominal interest rate - Inflation rate

= (9 - 5)%

= 4%

3 0
4 years ago
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