Those who try to benefit from a carry trade are hoping to borrow money at a low interest rate so that they can invest in something that will provide a higher return. People commonly do this between different foreign exchange markets to make the most on their return from investing in different country currencies.
now suppose that the government immediately pursues an accommodative policy by increasing government purchases in response to the short run economic impact of the higher oil prices <u>The output will be $billion and the price level will increase.</u>
<h3>What is
accommodative policy?</h3>
When a central bank (like the Federal Reserve) tries to increase the general money supply to support the economy when growth is stalling, this is known as accommodating monetary policy, often known as loose credit or easy monetary policy (as measured by GDP). The goal of the policy is to allow the money supply to increase in step with both the demand for money and national revenue.
- The expansion of the money supply by central banks to stimulate the economy is known as accommodating monetary policy.
- The Federal funds rate has been decreased as part of monetary policies that are deemed accommodating.
- The goals of these policies are to lower the cost of borrowing money and boost consumer spending.
To learn more about accommodative policy from the given link:
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Answer:
$20.38 buy
Explanation:
The computation of present value is shown below:-
Fair Value according to Gordon Model = Expected Div ÷ (Required Return - Growth rate)
= $1.63 ÷ (10.5% - 2.5%)
= $1.63 ÷ 8%
= $20.38
Fair Price = $ 20.38 and Actual Price = $18.00
As Fair Price is greater than the Actual Price so, the stock is under priced. Therefore advice to buy.
Human Resources are like eyes,mouth,legs and etc. they help us everyday and we need them,without them we wouldn’t be anything and some ppl don’t have them but they work without it. Business objectives is like you doing something that requires objectives like pen,paper,laptop something that will help with business.
Answer:
a. -$210,000
b. $455,000
Explanation:
a. Company's net income
Sales. 2,275,000
Less:
Cost of goods sold
1,285,000
Administrative and selling expenses
535,000
Depreciation expense
420,000
EBIT
35,000
Less interest
245,000
Taxable income
-$210,000
Taxes 21%
Nil
Net income
-$210,000
b. The operating cash flow for the year
OCF = EBIT + depreciation - taxes
OCF = 35,000 + 420,000 - 0
OCF = $455,000
c. Net income was negative due to the deductibility of interest expense and depreciation.
The actual operating cash flow was positive due to the fact that depreciation is a non cash expense, and also interest is a financing and not an operating expense.
