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Oksanka [162]
3 years ago
15

What is one reason why a government will deliberately inflate its national money supply?

Business
2 answers:
Alex73 [517]3 years ago
5 0

Answer:

To increase aggregate demand

Explanation:

Inflation of national money supply is one of the tools of the monetary authority, that is the central bank of a country to stimulate aggregate demand. Government resort to increasing the money supply when it embarks on expansionary monetary policy to achieve certain macroeconomic goals or objectives. some of the monetary policy tools used to achieve this are : interest rate, reserve requirement, e.t.c.

Pie3 years ago
4 0

To attract oversea investors and working immigrants

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Horford Co. has no debt. Its cost of capital is 8.9 percent. Suppose the company
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Answer:

A. 12.1%

B. 8.9%

Explanation:

a. Calculation for What is the company's new cost of equity

Using this formula

New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]

Let plug in the formula

New cost of equity=[0.089+[(0.089-0.057)*(1)*1]

New cost of equity=[0.089+0.032*(1)*1]

New cost of equity=[0.121*(1)*1]

New cost of equity=0.121*100

New cost of equity=12.1%

Therefore the company's new cost of equity will be 12.1%

b. Calculation for What is its new WACC

Particular Weight Cost Weighted cost

Equity 0.5000 *12.1% = 0.0605

Debt 0.5000 * 5.7% =0.0285

WACC =0.089*100

WACC =8.9%

(0.0605+0.0285)

Therefore the new WACC will be 8.9%

4 0
2 years ago
In the recent years, prices of basic food commodities such as corn, rice, and wheat have increased sharply. A recent article in
TiliK225 [7]

Answer:

I, II and III.

Explanation:

Price ceiling refers to the price control policy that is used by the government to protect the customers who are not able afford goods at the prevailing price.

If government of a nation sets a price ceiling below the equilibrium price level then this will increase the quantity demanded for the product because now goods become more affordable to the consumers and decreases the quantity supplied because it will become less profitable for the producers.

Hence, the demand for goods exceeds the supply of goods, this will create a shortage of goods in an economy.

6 0
3 years ago
Suppose that hca and tenet were to merge. ignoring potential antitrust problems, this merger would be classified as a:
inessss [21]
The appropriate response is a Horizontal merger. An even merger is a merger or business union that happens between firms that work in a similar space, as rivalry has a tendency to be higher and the cooperative energies and potential picks up in piece of the pie are considerably more prominent for consolidating firms in such an industry.
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3 years ago
One current consumer trend is consumers who allow others to borrow a good or service for a small fee, usually done on an on-line
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One current consumer trend is consumers who allow others to borrow a good or service for a small fee, usually done on an on-line platform. this is referred to as Sharing Economy.

The sharing economy is an economic model defined as peer-to-peer (P2P)-based activities of obtaining, providing, or sharing access to goods and services, often facilitated through online community-based platforms.

Under capitalism, the sharing economy is a socio-economic system built around the sharing of resources. It often involves a way of purchasing goods and services that differs from the traditional business model of a company that employs people to manufacture the products it sells to consumers.

Learn more about Sharing Economy here: brainly.com/question/28050979

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6 0
2 years ago
In immanuel wallerstein's view, the global economic system is divided between nations that control wealth and nations from which
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Conflict Perspective

Unlike the structural function theory, conflict perspective sees different economies as being in competition with each other for power and resources.

4 0
3 years ago
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