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sweet-ann [11.9K]
2 years ago
13

After learning about inflation and some of its history, what would be the inflation target that is most advisable for an economy

?
Business
1 answer:
Talja [164]2 years ago
8 0

Answer:

1-2%

Explanation:

In simple words, every nation in the world have some kind of central authority that works to control and keep the inflation as low as possible. However, too low inflation can also lead to recession which brings problems way worse than inflation.

Thus, keeping in mind about all the information we have studied, it is advisable to keep inflation at 1% or 2% band, so that economy can grow moderately along with no price pressure on consumers.

You might be interested in
A foreign currency ___________ is a contract giving the purchaser (the buyer) the right, but not the obligation, to buy or sell
Vera_Pavlovna [14]

Answer:

The correct answer is: Option; premium or option price.

Explanation:

As the name implies, an option refers to the right that is given to a potential buyer of capital goods to exercise currency trading within a specified time and amount. To carry out this process, an in-depth study must be carried out in order to make the best investment decision, for the benefit of both parties.

For its part, the price of the premium or option refers to the amount paid by the buyer in order to exercise the legitimate right over the capital asset. The premium corresponds to the value paid in excess and that represents a higher value for the seller within market estimates.

5 0
3 years ago
Jill's parents are concerned because she does not have a job despite graduating from college. Her parents tell her that they got
gtnhenbr [62]

Answer:

Her sociological imagination.

Explanation:

From the question, we were informed about Jill's parents who were concerned because she does not have a job despite graduating from college. Her parents tell her that they got jobs right out of high school, so she should be able to get a job very easily. They conclude that she must be lazy. Jill tells them that they need to consider larger economic trends and changes in technology to understand why she is having trouble finding a job. Jill is using

Her sociological imagination to explain her inability to get a job. The sociological imagination can be regarded as a practice that involved having ability to “think ourselves away” from some of our daily and familiar routines of our lives, so that see them with critical and new eyes, Sociological imagination is ability gotten by individual to focus away from his/her particular situation then think from other point of view or alternative perspective. Sociological imagination can be regarded from other point of view as capacity of individual to shift his/her thought from one perspective to another perspective.

5 0
3 years ago
Three people invest in a business. The first two invest in the ratio 2:3, and the third person
Diano4ka-milaya [45]

Answer:

$15 million

Explanation:

The three investors' total investments would add up to  100% or 1.

The first two invested in the ration of 2:3

It means ;

Investor 1:  2/5

Investor 2: 3/5

If investor 3 invested twice as investor 1 and 2, then we can deduce that he invested ( 2/5 + 3/5) x 2

the  new denominator is 10, meaning

Investor 1 had 2/10,

investor 2 had 3/10

investor 3 had 5/10

If total investments were $30 million, then the highest investor invested

5/10 x $30million

=0.5 x $30 million

=$15 million

5 0
3 years ago
When a company produces​ 5,000 units, total costs equal​ $150,000 and total variable costs equal​ $75,000. At this level of​ out
Marrrta [24]

Answer:

$15

Explanation:

Average fixed cost = Total fixed cost / quantity

Total fixed cost = Total cost - Total variable cost

= $150,000 - $75,000 = $75,000

Average fixed cost = $75,000 /5000 = $15

I hope my answer helps you

7 0
3 years ago
Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market du
anzhelika [568]

Answer:

cost of capital 16%

Explanation:

SML formula:

Ke= r_f + \beta (r_m-r_f)\\\\Where:\\r_f =$ risk free rate\\r_m= $ market rate\\\beta =non-diversifiable \:risk

r_f = 3%

β = 1.3

r_m = 13%

0.03 + 1.3(0.13-0.03)

firm's required return = .16 = 16%

4 0
3 years ago
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