Answer:
b. $102
Explanation:
Data provided as per the question below:-
Cost of basket in 2014 = $51
Cost of the basket in base year = $50
The calculation of the value of the CPI is shown below:-
Value of the CPI = (Cost of a basket in 2014 ÷ Cost of a basket in the base year) × 100
($51 ÷ $50) × 100
= $102
Therefore for computing the value of CPI we simply applied the above formula.
Answer:
a. demand assurances of performance from Massive.
Explanation:
When Silas Paving Co finds out about the sale of Massive Earthmovers assets to Phoenix Equipment corp, it should find out from Massive if there is still assurance of performance on their contract. If assurance is given by Massive that the contract still holds then Silas Paving Co does not need to worry.
If however there is no assurance from Massive then Silas will be able to take action against Massive for breach of contract.
Answer:
The correct answer is B. the expected interest rate for the next year and the current value of the furniture.
Explanation:
To compute the cost of owning the furniture for the next year we need 2 bits of information, the expected interest rate for the next year and the current value of the furniture.
As we need the cost of the next year, we don´t care about the interest we pay in the past. We need what we have to pay in the future.
And also , we need the current value of the antique furniture so we can know the cost of opportunity of running the antique furniture. ( If we don´t run this business , what can we do with that money?)
Answer:
D. Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boost the value of money.
Explanation:
Inflation is the general increase in prices in the economy over time. As the economy grows, prices automatically rise. There is a direct correlation between economic development and inflation. A high growth rate may result in a high inflation rate. High growth is caused by an increase in demand for goods and services.
Inflation erodes the purchasing power of money. As prices increase, it means one unit of money will purchase fewer quantities of goods and services than the previous season.
Deflation is the opposite of inflation. It means a general decline in prices in the country. Low production due to reduced demand causes prices to decline. One unit of money will purchase more quantities of goods and services as prices decline.
<span>Dr. Goldfinger should invest in companies that produce goods and services that meet consumer needs. These types of companies obviously know how to please customers and their menthods would rub off on Dr. Goldfinger, which would increase his customer's satisfaction and his profits.</span>
