Answer: The explanation is provided below
Explanation:
Below article is the summary of the acceleration of inflation in the emerging markets that was published in 2018.
According to the article, inflation in an economy is caused by an adverse supply shock or as a result of the expansionary fiscal policy or the expansionary monetary policy.
In an adverse supply shock, total quantity of basic goods will reduce drastically causing the aggregate demand to rise exponentially and therefore, push prices higher and then gradually lead to inflation.
Also, the continous and eventual implementation of the expansionary fiscal or monetary policy through continous tax cuts or by increasing government spending or reducting interest rates, lead into significant increase in the aggregate demand and as a result, prices rise eventually resulting in hyperinflation in the economy. This will also lead to increase in the real GDP of the economy.
Different tools in the monetary policy framework can be used to control inflation such as government securities,
the cash reserve ratio, interest rates. To reduce recession, government utilize automatic stabilizer in order to boost the economy.
In a budgeted income statement, cost of goods sold is subtracted from sales to arrive at the gross margin.
<h3>What is gross margin?</h3>
Net sales less the cost of products sold is known as gross margin. The profit made before deducting selling, general, and administrative (SG&A) expenses is represented by the gross margin. The ratio of gross profit to net sales is known as the gross margin or gross profit margin.
The gross profit margin formula,
Gross Profit Margin
= (Revenue – Cost of Goods Sold) / Revenue 
100,
indicates the percentage ratio of revenue you keep for each sale after all costs exist deducted.
The ratio of revenue divided by the cost of goods sold is known as the gross margin. The gross margin is expressed as a percentage. It is often computed as the selling price of an item divided by the same selling price, less the cost of goods sold.
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Answer:
$537.78
Explanation:
In order to find the present value of a future payment we discount it using a discount rate. The formula for that is
Present value = Future value/(1+Rate)^Number of years.
In this case we know the future value is $20,000, the discount rate is 7.5% and the number of years are 50, so we just input these numbers in the formula to find the present value or worth today.
Present value = 20,000/(1+0.075)^50
=537.78
$20,000 due in 50 years would be worth $537.78 today if discounted by 7.5%
If the central bank increases the amount of reserves banks are required to hold to 20%, then: both the money multiplier and supply of money in the economy will decrease.
<h3>What are the Functions of central bank?</h3>
The central bank oversees and manages the nation's foreign exchange while also serving as the technical advisor to the government on matters related to foreign currency policy. The central bank's role is to prevent volatility in foreign exchange rates and to promote stability. Implementing monetary policy and managing the money supply are the responsibilities of central banks, which are frequently tasked with preserving low inflation and steady GDP growth. To manage the cost of borrowing and lending across an economy, central banks have an impact on interest rates and take part in open market activities.
An organisation that controls a state's or formal monetary union's commercial banking system and regulates its currency and monetary policy is known as a central bank, reserve bank, or monetary authority. A central bank has the exclusive right to expand the monetary base, unlike a commercial bank.
Hence, If the central bank increases the amount of reserves banks are required to hold to 20%, then: both the money multiplier and supply of money in the economy will decrease.
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Answer:
The statement is: True.
Explanation:
A company's scope determines which sector of the market they will focus on and in what product specifically. For new businesses, it is recommended to engage in the production of one service only so the company can have enough control of it but the organization's goal should be to diversify as long as the firm grows and starts earning stable revenues.
