Answer:
b) A central bank is expected to achieve a 3% annual inflation rate
Explanation:
Inflation targeting is a type of monetary policy where the central bank of a country sets an inflation rate as its goal or target.
Answer:
Explanation:
Let x be the amount loaned at 7% and ($19,000 - x) be the amount loaned at 15%
Given:
Interest incurred at 7%, I1 + Interest incurred at 15%, I2 = $2000
Interest, I = amount × rate
I1 = 7/100 × x
I2 = 15/100 × ($19,000 - x)
From the above expressions,
(0.07)x + (0.15) × ($19,000 - x) = $2,000
Solving for x,
0.07x + 2850 - 0.15x = 2000
Collecting like terms,
0.08x = 850
x = $10625
The amount loaned at 7% interest is
$10625
The amount loaned at 15% interest is ($19000 - $10625)
= $8375
Answer:
True
Explanation:
A person (or company or country) must specialize in the production of the good or service for which they possess a comparative advantage.
Lindsay has an absolute advantage in both cutting lawns and pruning trees, but that doesn't mean that she has a comparative advantage at both.
Answer:
Over the economic life of the asset.
Explanation:
An asset obtained under a financial lease must be depreciated in the same way as the company would depreciate any other similar fixed asset. E.g. a leased truck should be depreciated similarly to other trucks owned by the company.
In a financial lease, the lessor amortizes the asset's value, while the lessee depreciates the assets as common fixed assets (a lessee doesn't amortize).
