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RUDIKE [14]
3 years ago
7

If inflation in the United States is 4% per year and in the United Kingdom it is 8% per year, and interest rate in the United Ki

ngdom is 6%, then the Fisher effect predicts that the interest rate in the United States is:_____a. 2%. b. 4%. c. 6%. d. 8%.
Business
1 answer:
Artemon [7]3 years ago
4 0

Answer:

c. 6%.

Explanation:

Nominal interest rate = Real interest rate + Expected rate of inflation

Real interest rate = Nominal interest rate - Expected rate of inflation

United Kingdom

Real interest rate = 8% - 6% = 2%

Use Real Interest rate globally

Nominal interest rate = Real interest rate + Expected rate of inflation

Nominal interest rate = 2% + 4% = 6%

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The product deletion process is similar to the ____ step of the new-product development process because both involve deciding wh
saul85 [17]

Answer:

e. Business analysis

Explanation:

Based on the description being made within the question it can be said that this process is similar to the Business analysis step. This step focuses on identifying the product needs and determining the best position and solution to different product/business related problems. Many factors such as sales, costs, and profits are taken into account during this step in order to make the best decisions possible.

4 0
4 years ago
A company that manufactures laser printers for computers has monthly fixed costs of $177,000 and variable costs of $650 per unit
nydimaria [60]

Answer:

295 units

Explanation:

The cost -volume-profits CVP concepts calculate the breakeven point by dividing fixed costs by the contribution margin per unit.

i.e., Breakeven point = Fixed cost/ contribution margin per unit.

For this company,

Fixed costs are $177,000

Contribution margin per unit

= selling price - variable costs.

=$1250 -$650

=$600

Breakeven point = $177,000 / $600

=295 units

6 0
4 years ago
Henry recently set up a retail store in his hometown. He studied the pattern that other store-owners followed in obtaining new c
dangina [55]

Henry should concentrate on<u> Promotion </u>to distinguish his retail store.

<u>Explanation:</u>

In the Marketing mix, there are seven P's which are very important. For business to be successful, the retailer should concentrate and evaluate the formula of these seven P's. There are price, promotion, product, people, positioning, packaging and place.

Since the place, product, price of Henry is also the same like that of the other retailers who are in the same market, he should concentrate and focus on the promotion of the product so that he distinguishes from the other retailers in the market. He should let maximum people know about his shop and should try some other ways also to promote his shop.

7 0
3 years ago
Consider the following income statement: Sales $510,944 Costs 332,416 Depreciation 77,300 EBIT ________? Taxes (32%) ________? N
Lynna [10]

Answer:

$101,228; $68,835; $24,736

Explanation:

Given that,

Sales = $510,944

Costs = $332,416

Depreciation = $77,300

Tax rate = 32%

EBIT:

= Sales - costs - Depreciation

= $510,944 - $332,416 - $77,300

= $101,228

Net income = EBIT - Taxes

                   = $101,228 - ($101,228 × 32%)

                   = $101,228 - $32,393

                   = $68,835

Depreciation tax shield:

= Depreciation × Tax rate

= $77,300 × 32%

= $24,736

7 0
4 years ago
The biggest problem faced by less developed countries in financing development is
sashaice [31]

Failure to repay credits is the major problem faced by less developed countries in financing development.  And in addition to that the present procedure came to a head when global leaders assembled in Addis Ababa, Ethiopia, on 13-16 July 2015 at what’s formally called the Third International Conference on Financing for Development. To see all of Citiscope’s recording on the Financing for Development process from an urban viewpoint.

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7 0
3 years ago
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