Answer:
1. Inflation is best described as _____.
- an upward, general trend of prices in the economy
2. Which of the following scenarios illustrates cost-push inflation?
- An increase in the price of raw materials decreases aggregate supply, pushing prices higher throughout the economy.
3. The Consumer Price Index in 2018 was 251. In 2019, the CPI rose to 257. Calculate the inflation rate from 2018 to 2019. Round your answer to the nearest tenth of a percent.
- 2.4%
4. The Consumer Price Index of any given year provides _____.
- the relative price of a basket of consumer goods as compared to base year prices
5. The rate of inflation in a hypothetical economy is projected to be 1.5% in the coming quarter. Given this information, the Federal Reserve is likely to _____.
- make efforts to raise the inflation rate because 1.5% is below the desired rate of inflation
Explanation:
Mark me braliest
These are 100% correct
Answer:
Year 1 = $1,100
Year 2 = $1,330
Year 3 = $1,550
Year 4 = $2,290
(a) If the discount rate is 6 percent, then the future value of these cash flows in Year 4:
To solve this problem, we must find the FV of each cash flow and add them. To find the FV of a lump sum, we use:
= $6737.51
(b) If the discount rate is 14 percent, then the future value of these cash flows in Year 4:
= $7415.17
(c) If the discount rate is 21 percent, then the future value of these cash flows in Year 4:
= $8061.47
Answer:
ROA = 0.08 or 8%
Asset turnover = 2.4
Profit Margin = 0.033 OR 3.3%
Explanation:
All of the above requirements can be calculated as follows according to their formula
Working
Average asset = (Assets at beginning + assets at end )/ 2
Average assets = (4025 + 4970 )/ 2
Average assets = $4497.5
Requirement A. Return on assets
ROA = Net Income / Average assets
ROA = $359.8 / $4497.5(w)
ROA = 0.08 or 8%
Requirement 2 Asset turnover
Asset turnover = Net Sales / Average assets
Asset turnover = $10,794 / $4497.5
Asset turnover = 2.4
Requirement 3 Profit Margin
Profit margin = Net income / Net sales
Profit margin = $359.8/$10,794
Profit Margin = 0.033 OR 3.3%
Answer:
Firms need finance to:
start up a business, eg pay for premises, new equipment and advertising.
run the business, eg having enough cash to pay staff wages and suppliers on time.
expand the business, eg having funds to pay for a new branch in a different city or country.
Answer:
On the 50th day, the purchase cost will be equal to the lease cost
Explanation:
Given that:
- Daily operating costs of $500
- Purchasing cost for the item: $10,000
- Lease amount: $700
Let x is the number of days the purchase cost be the same as the lease cost. As we now that:
The total cost should be equal to the total lease received
<=> 10,000 + 500x = 700x
<=> 200x = 10000
<=> x = 50
Hence, on the 50th day, the purchase cost will be equal to the lease cost