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sergij07 [2.7K]
3 years ago
9

Your restaurant’s revenue is 710,000 expenses total 890,000 , and your total investment is 3 million. What is your return on inv

estment
A) -6%
B) -3%
C) 1%
D) 6%
Business
1 answer:
Karo-lina-s [1.5K]3 years ago
8 0

Answer:

A) -6%

Explanation:

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7. Identifying costs of inflation Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in
stiks02 [169]

Answer:

Shoe-leather Costs.

Explanation:

In this scenario, Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value.

What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the Shoes-leather costs of inflation.

A Shoe-leather costs refers to the costs of time, energy and effort people expend to mitigate the effect of high inflation on the depreciative purchasing power of money by frequently visiting depository financial institutions in order to minimize inflation tax they pay on holding cash.

Metaphorically, it ultimately implies that in order to protect the value of money or assets, some people wear out the sole of their shoes by going to financial institutions more frequently to make deposits.

Hence, Bob is practicing a shoe-leather cost of inflation so as to reduce the nominal interest rates.

5 0
3 years ago
Steele Plate Units Cost Mar. 3 Purchase 1 $830 10 Purchase 1 840 19 Purchase 1 880 Total 3 $2,550 Assume that one unit is sold o
nignag [31]
The answer should be 2
6 0
1 year ago
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following situation
Arlecino [84]

Answer:

1. a) War increases demand for loanable funds, demand curve shifts RIGHT. (Increase in real interest rate)

b) Private investors are optimistic about the economy (i.e. investment opportunities). Demand for loanable funds increases, demand curve shifts RIGHT. (Increase in real interest rate)

c) Tax increase means a decrease in the supply about loanable funds. Supply curve shifts LEFT. (Increase in real interest rate)

2. would most likely increase the supply of loanable funds. If Americans are saving more, then they are spending less money and investing more of it. Remember--saving does not mean "not using it". It means investing it instead of consuming.

3. The interest rate will fall. There is a surplus of loanable funds and the real interest rate will reflect this surplus by falling.

4. decrease in the demand for loanable funds. When output decreases, the return on investment for new projects decreases and investors are less in need of money to fund their ventures.

5. decrease the supply for loanable funds. If they are consuming more, they are saving less.

6. Increase / Decrease. When interest rates increase, growth is reduced because funding economic ventures is now more costly. Sometimes the fed will increase interest rates when it anticipates inflation to increase in order to mitigate economic growth.

Hope this was helpful!

Explanation:

5 0
3 years ago
A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain
MissTica

Answer:

The correct answer is B that is gain of $1,000

Explanation:

The amount of gain or loss on the disposal of the fixed assets is computed as:

Amount of loss or gain = (Selling Price + Accumulated depreciation) - Cost of fixed assets

where

Selling Price is $27,500

Accumulated depreciation is $3,500

Cost of fixed assets is $30,000

Putting the values above:

= ($27,500 + $3,500) - $30,000

= $31,000 - $30,000

= $1,000

It is a gain of $1,000 on disposal of the fixed assets.

3 0
2 years ago
under a fractional reserve banking system the amount of money loaned out can only increase if what happens
Bogdan [553]

Answer:

<em>The Required Reserve Ratio Is Lowered</em>

hope it helps:)

3 0
3 years ago
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