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zhuklara [117]
2 years ago
13

The Fisher effect states that the

Business
1 answer:
tatuchka [14]2 years ago
8 0

Answer:

A. nominal interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.

Explanation:

Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.

Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.

When this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation.

The Fisher effect states that the nominal interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.

Thus, the real interest rate in a particular country's economy equals the nominal interest rate minus the expected inflation rate.

All things being equal (Ceteris paribus), the expected inflation rate of a country's economy would eventually cause an equal rise in the interest rate that the deposits of the country's currency can offer. Also, as inflation increases, the real interest rate falls or decreases.

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Suppose that when the price of a certain commodity is p dollars per unit, then x hundred units will be purchased by consumers, w
Nataly_w [17]

Answer:

Profit = TR- TC
= x (P) - C(x)
= x(-0.05x+38) - (0.02x^{2} + 3x + 574.77)
= -0.05x^{2} + 38x - 0.02x^{2} - 3x - 574.77
= -0.07x^{2} + 35x -574.77

This profit equation is an equation of a parabola that opens downward (Since A=-0.07<0) and has its vertex at

x= -\frac{B}{2A}  = -\frac{35}{2 (-0.07)}  = 250

Thus, revenue is maximized when x=250 hundred units. At this quantity maximum profit is

P(250)=3800.23 hundred dollars

b. Profits are maximised at x=250 hundred units. The per unit price at this is,

p= -0.05x + 38&#10;= -0.05 (250) + 38&#10;= $25.5


7 0
3 years ago
Acquiring Corporation transfers $1 million of its voting common stock and $100,000 cash to Target Corporation in exchange for 90
VladimirAG [237]

Answer:

Type C” reorganization

Explanation:

The restructuring qualifies as “Type C” reorganization because minimum 80% of assets of Target are obtained with Acquiring stock. At least 90% of the net assets and 70% of the gross assets are transferred from Target for Acquiring stock of voting. The exchange does not qualifies as a “Type A” as none of the liabilities are assumed by Acquiring. Therefore, the restructuring qualifies as “Type C” reorganization.

8 0
2 years ago
True or False: If Van's Fire Engines were a competitive firm instead and $105,000 were the market price for an engine, decreasin
S_A_V [24]

Answer:

False

Explanation:

As for the given instance, the market is not solely dependent on Van's Fire Engines, as it is a competitive market.

The supply and demand are inversely proportional and does not depend on change of price in a competitive market.

Accordingly even after decline in the price from $105,000 to $90,000, the production quantity will not be affected similarly with the same proportion.

Further, Total revenue might be affected as with decrease in price might light to more sale, and there might be slight change both upward or downward in such sales revenue.

But since the change will never be in same proportion to change in price.

Thus, the statement above is false.

5 0
3 years ago
Which type of bank account is best for everyday transactions
Elena-2011 [213]

Answer:

Checking accounts

Explanation:

They are better for everyday transactions such as purchases, bills and ATM withdrawals.They also Have lower interest. Savings Accounts would be better for storing/Earning interest.

6 0
3 years ago
Read 2 more answers
The investment decisions of many traders on wall street in the early 2000s led to the downfall of several investment companies,
marshall27 [118]
The correct answer is e, controlling.
Controlling in managerial function is defined as the efforts, systematically, by which is given by the business management in order to be able to compare the performance made to the plans, standards or objective by means of determining if it is in lined with the order or if there are changes needed to be made.
3 0
3 years ago
Read 2 more answers
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