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
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Answer:
Concentrated Targeting Strategy
Explanation:
Concentrated Targeting Strategy refers to a situation in which an organization focus its marketing efforts on only a specific segment of the market. That is, only one marketing mix is developed.
Concentrated Targeting Strategy allows the producer focus on the needs and wants of a particular segment of the consumers/ population. The producer directs all it's efforts to the satisfaction of a segment of the consumers.
Concentrated Targeting Strategy could be disadvantageous if the demand of the focused segment of consumers is low. Low demand will affect the financial position of an organization.
Answer:
a. nearshore outsourcing
Explanation:
Nearshore outsourcing is a business practice related to transferring certain activities and services to people and organizations in neighboring countries.
Since Canada and Mexico are neighboring countries of the US, this is nearshore outsourcing. On the other hand, offshore outsourcing is a type of outsourcing that transfers the activities on to farther countries. In this example, offshore countries would be India or Ukraine.
Answer:
monthly data series in a GDP
Explanation:
A GDP is defined as the actual domestically manufactured or produced products or the services provided in a financial year which describes or estimates the financial status or economic status of a country. GDP stands for Gross domestic product.
By analyzing the monthly data series of goods or services produced one can predict the real GDP of a country to be. One can use the monthly observations of the employment, unit auto as well as truck sales, sousing starts, retail sales, trade, automobile inventories, manufacturing, shipment of machinery and equipment, index of the industrial production, etc. to predict the GDP growth or get an idea of the GDP figures that are going to show the robust growth of the economy.
Answer:
Net present value $1,363.50
Explanation:
The computation of the net present value of B is shown below:
Year Cash flows PVIFA factor at 15% Present value
0 -$15,600 1 -$15,600
1 0 0.8696 0
2 0 0.7561 0
3 25,800 0.6575 $16,963.50
Net present value $1,363.50
