It can be deduced that the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
How to calculate the expected rates of return ?E(RA) = 0.1 (10%) + 0.2 (13%) + 0.2 (12%) + 0.3 (14%) + 0.2 (15%)= 13.2%
E(RB) = 0.1 (8%) + 0.2 (7%) + 0.2 (6%) + 0.3 (9%) + 0.2 (8%)= 7.7%
Therefore, the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
The standard deviation will be calculated thus:
Var(RA) = [0.1 (10%-13.2%)² + 0.2 (13%-13.2%)² + 0.2 (12%-13.2%)² + 0.3 (14%-13.2%)² + 0.2 (15%-13.2%)2 ] 1/2
= 1.5%
Var(RB) = [0.1 (8%-7.7%)² + 0.2 (7%-7.7%)² + 0.2 (6%-7.7%)² + 0.3(9%-7.7%)² + 0.2 (8%-7.7%)² ] 1/2
= 1.1%
Therefore, the standard deviation of stocks A and B are 1.5% and 1.1% respectively.
To learn more about stock investment refer
https://brainly.com/question/25300925
#SPJ4
3. Kevin took out a loan for a car. He must pay $3,000.00 in interest, service
charges, and loan fees. What lending term best describes these costs?
Answer:
The finance charge
Explanation:
The finance charge is the total cost incurred when borrowing money, including interest amount and all other fees. It is the extra money paid on top of the borrowed amount. The finance charge may be a flat fee or a percentage of the principal amount.
The finance charge represents the expense incurred for using credit. The finance charge is an important consideration when choosing a preferred lender.
What is something that will not help you get a higher credit limit?
A: Paying off the balance of the credit card each month
B: Asking the banking company for a higher limit on your credit card
C: Maxing out the credit card and only making the minimum payment each month
D: Making more money at your job (More personal income)
Maxing out the credit card and only making the minimum payment each month is something that will not help you get a higher credit limit. A credit limit is the most money you are permitted to spend on a credit card or line of credit by a lender.
If a credit card company grants you a credit limit of $2,500, that is the most you may ever have charged to the card payment . If you charge $1,900 to your card, you will have $600 left over that you can use without paying a fee or being restricted from using the card limit further.
To learn more about credit card, click here.
https://brainly.com/question/27350251
#SPJ1
How do banks create money?
a) by issuing loans and opening checking accounts
b) by holding money in their vaults
c) by charging interest
d) by printing it
The correct answer is option B) by holding money in their vaults.
How does a bank make money?
Banks make money from service charges and fees. These fees vary based on the products, ranging from account fees (monthly maintenance charges, minimum balance fees, overdraft fees, non-sufficient funds (NSF) charges), safe deposit box fees, and late fees.
Where do banks borrow money from?Banks can borrow from the Fed to meet reserve requirements. The rate charged to banks is the discount rate, which is usually higher than the rate that banks charge each other. Banks can borrow from each other to meet reserve requirements, which are charged at the federal funds rate.
Learn more about Banks here: brainly.com/question/24792133
#SPJ2
NuMexAwesomeHay has the following financials:
Current Assets: $37,000
Operating Income: $82,900
Net Income: $112,100
Current liabilities: $42,500
Interest Expense: $79,000
Inventory: $18,500
Calculate the Coverage ratio:
Calculate the Quick ratio:
The Coverage ratio is calculated by dividing the earnings before interest and taxes by the interest expense. The Quick Ratio (or Acid-Test Ratio) is a liquidity metric that measures a company's ability to pay off its current liabilities with its quick assets (assets that can be easily converted into cash).
Quick ratio = (Current Assets - Inventory) / Current Liabilities
Given the following financials: Current Assets: $37,000 Operating Income: $82,900 Net Income: $112,100 Current Liabilities: $42,500 Interest Expense: $79,000 Inventory: $18,500
Coverage ratio = (Operating Income / Interest Expense)
= ($82,900 / $79,000)
= 1.05
Quick ratio = (Current Assets - Inventory) / Current Liabilities
= ($37,000 - $18,500) / $42,500
= $18,500 / $42,500 = 0.435 or 0.44 (rounded to two decimal places). Therefore, the Coverage ratio is 1.05, and the Quick ratio is 0.44.
To know more about Coverage Ratio visit:
https://brainly.com/question/30749873
#SPJ11
If you earn a monthly salary of $2,100 what is the maximum amount of debt you should have to avoid debt issues?
Answer:
$756
Explanation:
As a rule of thumb, lenders apply the 28/36 rule to determine if a borrower is over-indebted.
The 28/36 rule suggests that individuals should not spend more than 28% of their gross income on household expenses. The debt level should not exceed 36% of gross income.
With a salary of $2,100, the maximum debt should be 36% of $2100.
=36/100 x $2100
=0.36 x $2100
=$756
Maximum debt should be $756
It is the obligation the _________ to disclose a buyer's financial ability to purchase a home?
It is the obligation of the Buyer agent to disclose a buyer's financial ability to purchase a home.
An obligation is a direction of motion that someone is needed to take, whether prison or moral. Responsibilities are constraints; they limit freedom. Folks that are under responsibilities may additionally choose to freely act below responsibilities.
Making things disclose is to make something recognized publicly, or to expose something that became hidden.
The term financial ability may have numerous meanings. In banking, it refers back to the capacity to carry a loan, additionally called economic potential. A financial ability definition can also talk to economic literacy, meaning understanding of financial topics and the ability to make sound economic choices.
Learn more about obligation here: https://brainly.com/question/23724650
#SPJ4
hi answer this if you know it plz :)
How do consumers usually react when they are dissatisfied with a product or its delivery?
O A. purchase from local produce
B. purchase in bulk
C.
shift their loyalties
D.
reduce frequently of purchase
A shopper sees two brands of spaghetti sauce. One is store brand, and the other is a well-known national brand. Even though the two sauces taste extremely similar, the shopper believes the national brand is more valuable. Based on money’s function as a measure of value, which brand would the shopper be willing to pay more for? Why?
Answer:
The shopper would being willing to pay more for the brand name sauces particularly because of the brand name. If the shopper knows that the brand is trustworthy and well known the chances of them buying it, despite the price, rises.
Explanation:
Hi there! I hope this helps! Good luck! :)
As a producer, you are willing to supply the most goods at the highest price. This is because the highest
price earns you the
most demand
highest costs
most profits
Answer: most profits
Explanation:
owner, andy pforzheimer, holds a meeting with his employees in which they discuss food costs. during this meeting, andy is performing the _____ function of his job.
Owner, andy Pforzheim, holds a meeting with his employees in which they discuss food costs. during this meeting, and is performing the controlling function of his job.
What is a meeting?
The goal of this meeting is to ensure that all parties are aware of how a project is progressing. A discussion aim is a short sentence that sums up the intended result of the gathering. Its main objective is to set individuals up with sights for them to engage jointly.
The planning, organizing, guiding and supervising of staff actions in conjunction with certain other resources in order to attain organizational goals.
Learn more about meeting, here:
https://brainly.com/question/16042940
#SPJ1
roy sartore has been hired to oversee all of the plans that the city of denver has created to expand its train transportation system by adding six more lines to the metro area. roy will be responsible for planning the project, managing the processes, and finalizing each new line as it is completed. how would you categorize the majority of the decisions roy will have to make to complete his job? group of answer choices structured decisions unstructured decisions strategic decisions semistructured decisions
It is likely that Roy Sartore will have to make primarily structured and semistructured decisions in order to complete his job overseeing the expansion of Denver's train transportation system.
Structured decisions are those that are straightforward and can be made using a set of predetermined criteria or rules. These types of decisions are typically routine and repetitive in nature, and do not require a lot of creativity or innovation.
In Roy's case, structured decisions may include things like determining the budget for each new train line, establishing timelines for completion, and identifying the specific resources needed to complete each phase of the project.
Semistructured decisions, on the other hand, are those that do not have a clear answer or solution, but still require some structure and guidance to make the best decision possible. These types of decisions typically involve multiple factors and require some level of analysis and judgment.
In Roy's case, semistructured decisions may include things like determining the optimal route for each new train line, identifying potential roadblocks or obstacles that may arise during construction, and deciding on the most appropriate technology and equipment to use for each new line.
Strategic decisions, which are those that are made at a high level and have long-term implications for the organization, may also be necessary for Roy to make, particularly when it comes to identifying the overall goals and objectives of the train transportation system expansion project.
It is unlikely that Roy will need to make many unstructured decisions, which are those that are complex and open-ended, and do not have a clear solution or answer. However, given that Roy's primary responsibility is to plan and manage the project on a day-to-day basis, it is likely that most of his decisions will fall into the structured and semistructured categories.
For more question on "Semistructured Decisions" :
https://brainly.com/question/14663125
#SPJ11
On July 1, Robles Metal Products had a beginning inventory of $505,700. During the quarter, goods costing $290,900 were manufactured. The inventory at the end of September was $485,300. During the quarter, Robles' net sales were $759,200. What was the cost of goods sold for the quarter? What was Robles's gross profit for the quarter?
Answer:
Instructions are below.
Explanation:
Giving the following information:
beginning inventory= $505,700
Cost of goods manufactured= $290,900
Ending inventory= $485,300
Net sales= $759,200.
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 505,700 + 290,900 - 485,300
COGS= $311,300
Now, we can determine the gross profit:
Gross profit= net sales - COGS
Gross profit= 759,200 - 311,300
Gross profit= 447,900
Write down the career you want to pursue and identify which of the four assessments you learned about in the lesson you need to take for your career.
Answer:
Explanation:
As a chartered accountant, I want to pursue a career in accounting and finance. From the lesson I learned about, I believe I need to take the following four assessments to further my career:
Aptitude test: This assessment will evaluate my cognitive abilities and problem-solving skills, which are important for success in the field of accounting and finance.
Personality test: This assessment will help determine my personal strengths, values, and communication style, which are important qualities for a chartered accountant to possess.
Interest inventory: This assessment will help me understand my interests and passions, which can guide my career path as a chartered accountant.
Work style assessment: This assessment will help me understand my work habits and preferences, which can inform my approach to tasks and projects as a chartered accountant.
Answer:
I want to teach English literature and therefore I want to become a professor at a reputed university. I will have to take the SAT exam in order to get admission in a good college.
Explanation:
the constant growth stock valuation model can't be used under which of the following conditions? group of answer choices a zero growth rate a negative growth rate. a growth rate less than the stock's required return. a growth rate greater than the stock's required return.
D) Under a growth rate greater than the stock's required return, the constant growth stock valuation model cannot be applied.
Describe growth stock.Any stock in a company that is expected to increase in value significantly faster than the market as a whole is considered a growth stock. Typically, these stocks don't pay dividends.
This is so because companies that issue growth stocks typically want to reinvest any earnings they generate to hasten growth in the short term. When investing in growth stocks, investors hope to profit from capital gains when they eventually decide to sell their shares in the future.
What Qualifies as a Growth Stock?
When it comes to stocks, "growth" refers to the company's significant potential for capital growth. These are frequently newer, smaller-cap companies, or those operating in expanding industries like biotechnology or technology. Growth stocks frequently have high P/E ratios despite having low or even negative earnings.
Learn more about growth stock valuation with the help of the given link:
brainly.com/question/28018384
#SPJ4
10)
How might a mission statement help Donna with her new
business?
A mission statement can help Donna with her new business by providing clarity and direction for her venture. It serves as a guiding statement that outlines the purpose, values, and goals of the business.
It helps Donna align her decisions, actions, and strategies with the overall mission, facilitating focus and consistency in her business operations. A mission statement is a concise statement that articulates the purpose and core values of a business. It outlines what the business aims to achieve and how it intends to operate. For Donna, having a mission statement for her new business can provide several benefits.
Firstly, it helps Donna define the purpose and direction of her business. It clarifies the reason for starting the business and what it aims to accomplish, providing a sense of focus and clarity.
Secondly, a mission statement helps Donna communicate her business's values and principles to stakeholders, including employees, customers, and investors. It sets the foundation for building a strong company culture and aligning everyone's efforts toward a common goal.
Lastly, a mission statement can serve as a guide for decision-making and strategy development. When faced with choices or challenges, Donna can refer to her mission statement to ensure that her actions align with the overall purpose and values of her business.
A mission statement plays a crucial role in helping Donna with her new business by providing clarity, guiding decision-making, and aligning stakeholders toward a common vision.
In conclusion, a mission statement can significantly benefit Donna in her new business. It provides clarity and direction, communicates values to stakeholders, and guides decision-making and strategy development. By establishing a mission statement, Donna can effectively define her business's purpose and goals, foster a strong company culture, and make informed decisions that align with her business's overall mission. This helps create a solid foundation for success and growth in her new venture.
To know more about goals, visit:
https://brainly.com/question/25534066
#SPJ11
The Bradshaw family has $200,000 of total assets and $140,000 of liabilities. What is their net worth?
Malleable
Measurable
Maintainable
Manageable
Answer: $60,000
Explanation:
The Net worth of a person or people can be calculated by deducting their liabilities from their total assets.
The net worth of the Bradshaw family is therefore;
= 200,000 - 140,000
= $60,000
The options given are not for this question. There is a similar question which asks what the M in the Goal-setting acronym S.M.A.R.T stands for.
The answer to that is Measurable.
National networks is an emerging provider of cable television services. is currently working to identify best practices among its competitors through the process of ______.
financial analysis
auditing
benchmarking
staffing
empirical analysis
National Networks is an emerging provider of cable television services. is currently working to identify best practices among its competitors through the process of benchmarking.
National Networks, as an emerging provider of cable television services, is actively engaged in identifying best practices among its competitors. This process involves various strategies and techniques to gather information and gain insights into industry standards and successful practices. One approach that National networks can employ is benchmarking.
Benchmarking is a systematic process of comparing one's own performance, practices, and outcomes against those of industry leaders or competitors. It allows organizations to identify areas for improvement and learn from the best practices of others. By benchmarking against its competitors, National networks can gain valuable knowledge about successful strategies and tactics employed by established players in the cable television services sector.
Through benchmarking, National networks can analyze various aspects of their competitors' operations, such as customer service, pricing models, channel lineups, content offerings, and technological advancements. This analysis can provide valuable insights into industry trends, customer preferences, and emerging opportunities for growth.
To learn more about benchmarking
https://brainly.com/question/1104065
#SPJ11
cosA=1/2^-1.find the value of A
Answer:
A = 60°
Explanation:
Since cosA = 1/2, to find the value of A, we take the inverse cosine of both sides.
So, cosA = 1/2
So, taking inverse cosine of both sides, we have
cos⁻¹cosA = cos⁻¹(1/2)
So, A = cos⁻¹(1/2)
Using our calculator, taking cosine inverse of one-half, we find that, cos⁻¹(1/2) = 60°
Since cos⁻¹(1/2) = 60° and A = cos⁻¹(1/2)
This implies that A = 60°
So, we find that the value of A is 60°.
What impact does a bargain purchase option have on the present value of the minimum lease payments computed by the lessee
A bargain purchase option in a lease agreement allows the lessee (the person leasing the asset) to purchase the leased asset at the end of the lease term for a price significantly lower than its fair market value.
The presence of a bargain purchase option has a significant impact on the present value of the minimum lease payments computed by the lessee. The minimum lease payments computed by the lessee include both the base lease payments and any residual value guarantees. The inclusion of a bargain purchase option reduces the present value of the minimum lease payments because it increases the likelihood that the lessee will exercise the option to purchase the asset at a bargain price. As a result, the overall cost of the lease to the lessee is reduced, and the present value of the minimum lease payments is lower.
Learn more about bargain purchase
https://brainly.com/question/14983914
#SPJ4
Financial institutions pay___
to you for letting them use your money.
A. maintenance costs
B. interest
C. penalties
D. fees
Answer: B
Explanation: I work for a bank.
Financial institutions pay interest to a person for letting them use the money of any other person or institutions.
What are the financial institutions?Financial institutions are also called as the banking institutions that provide the finance to the person who needs it, and these institutes are business concern entities that render employments as intermediators for different kinds of financial monetary system transactions.
For allowing a person to use the money of another person or entity, financial institutions pay interest.
Therefore, option B is correct.
learn more about the interest, refer to:
https://brainly.com/question/1040694
#SPJ2
Even if the buyer's and seller's brokers agree to dual agency, who may reject the arrangement of dual agency in a transaction?
Either the buyer or the seller can reject dual agency, even if the brokers agree to it.
Even if the buyer's and seller's brokers agree to dual agency, either the buyer or the seller may reject the arrangement. This is because dual agency creates a conflict of interest, and both parties have the right to have an agent who is working solely in their best interests.
If either the buyer or the seller rejects dual agency, the transaction will need to be handled by two separate agents. This may make the transaction more complex and time-consuming, but it will ensure that both parties have the best possible representation.
Here are some of the reasons why a buyer or seller might reject dual agency:
They may feel that the agent cannot represent their interests fairly if they are also representing the other party.
They may be concerned that the agent will not disclose all of the information that is relevant to the transaction.
They may simply prefer to have an agent who is working solely in their best interests.
If you are considering dual agency, it is important to understand the risks involved and to be sure that you are comfortable with the arrangement. You should also discuss the matter with your agent to make sure that they understand your concerns and are committed to representing your interests fairly.
To learn more about dual agency: https://brainly.com/question/29900302
#SPJ11
TRUE/FALSE. Disparate impact exists when individuals in similar situations are intentionally treated differently and the different treatment is based on an individual's membership in a protected class.
False. Disparate impact exists when individuals in similar situations are treated differently due to a seemingly neutral policy or practice, which unintentionally results in a disproportionate impact on a protected class.
Disparate impact occurs when a seemingly neutral policy or practice, such as hiring criteria or promotion requirements, has a disproportionately adverse effect on a protected class, such as a particular race, gender, or age group. The focus is on the outcome or impact rather than the intention behind the policy. This concept recognizes that even seemingly neutral practices can result in unfair or discriminatory consequences.
To determine if disparate impact exists, statistical analysis is often used to assess whether there is a significant disparity between the outcomes for different groups. If the analysis shows a significant disparity, further examination is conducted to determine if the policy or practice can be justified by a legitimate business necessity.
disparate impact refers to unintentional discrimination that occurs when seemingly neutral policies or practices disproportionately affect members of a protected class. It does not require intentional differential treatment based on membership in a protected class.
To know more about Disparate follow the link:
https://brainly.com/question/29330362
#SPJ11
Jesse got a job at a fitness center. He thought his first paycheck would be $200 for working 20 hours at $10 an hour. Instead, the paycheck was for $180. Which was most likely taken from his check?
A.) taxes
B.) interest
C.) profit
D.) dividends
Answer:
Taxes
Explanation:
The answer to the question is taxes.
Answer:
Hey there! It sounds like Jesse got a job at a fitness center and was expecting his first paycheck to be for $200, but it ended up being for $180 instead. That's a bummer!
Paychecks often have various deductions taken out, like taxes, insurance premiums, and retirement contributions. It's possible that some or all of these deductions were taken out of Jesse's paycheck, which is why it was for less than he expected.
Taxes are a common deduction from paychecks, so it's likely that some taxes were taken out. But don't worry, this is just part of the process of getting paid and is completely normal.
It's probably not interest, profit, or dividends, since those things are usually associated with investments or financial products, not employment.
the journal entry to record the payment for merchandise previously purchased on account will cause stockholders' equity to .
The journal entry to record the payment for merchandise previously purchased on account will cause stockholders' equity to remain unchanged.
What is the Journal Entry?The journal entry to record the payment for merchandise previously purchased on account is as follows:DateAccount TitleDebitCreditXX/XX/XXXXAccounts PayableXXXXCashXXXXThis journal entry reflects that a company is paying off its accounts payable (liabilities) to a vendor. Since accounts payable are part of the liability component of the balance sheet and not the equity component, the payment of accounts payable will not alter the equity component (stockholders' equity).What is Stockholders' Equity?The residual interest in the assets of a company after deducting liabilities is referred to as stockholders' equity.
It is the total sum of a company's common stock, additional paid-in capital, and retained earnings. Stockholders' equity is reported on the balance sheet and represents a company's net worth. A company's stockholders' equity is not affected by the payment of accounts payable as accounts payable falls under the liability section of the balance sheet.
Learn more about journal entry here:https://brainly.com/question/20714023
#SPJ11
When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a.
When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a Refund.
Taxes are mandatory contributions levied on people or groups through a central authority entity—whether neighborhood, local, or countrywide. Tax revenues finance authorities sports, such as public works and offerings including roads and faculties, or applications consisting of Social security and Medicare.
Taxes are obligatory contributions levied on people or companies with the aid of a government entity—whether local, local, or national. Tax sales finance authorities sports, together with public works and offerings along with roads and faculties, or packages along with Social safety and Medicare.
Learn more about taxes here : https://brainly.com/question/26316390
#SPJ4
Tina shopped for office stationery online. She browsed a few music playlists of another website in a separate browser. She had a high-speed
Internet connection. So, she could complete the stationery purchase quickly. At the checkout page, she entered her credit card details. She also
entered the delivery address. She then checked her mail for any new emails. Which data from the online shopping portal will typically be stored
In a data warehouse?
and the
will be typically stored in an online shopping portal's data warehouse.
The data that will typically be stored in an online shopping portal's data warehouse are the customer's purchase history, product information, customer reviews, and website traffic data.
When a customer shops online, the website collects a lot of data, such as the products they viewed, the items they added to their cart, the time spent on the website, and the final purchase. This data is important for the business to understand the customer's behavior and preferences, and to improve their services. The data warehouse is a centralized database that stores all this information for future analysis and reporting. It allows the business to run complex queries, create reports, and make data-driven decisions.
The data that will be typically stored in an online shopping portal's data warehouse can be broadly classified into four categories: customer data, product data, website traffic data, and customer reviews. This includes the customer's purchase history, their personal information (name, address, email, phone number), their payment details (credit card number, billing address), and their login credentials. This data is essential for the business to create a personalized shopping experience for the customer and to offer targeted promotions and discounts. It also helps the business to prevent fraud and ensure secure transactions. Product data: This includes information about the products sold on the website, such as the product name, description, SKU, price, category, and inventory levels. This data is critical for the business to manage their inventory, optimize their pricing strategy, and analyze the popularity of different products. It also helps the business to recommend related products to the customer and improve their search functionality. Website traffic data: This includes information about the customer's behavior on the website, such as the pages they visited, the time spent on each page, the search terms used, and the device they used to access the website. This data is important for the business to understand how customers interact with their website and to identify any usability issues or bottlenecks. It also helps the business to optimize their website's design, layout, and navigation.
To know more about warehouse visit:
https://brainly.com/question/27760559
#SPJ11
If your manager were to give you a complex project that involved a lot of research and analysis to provide information to write a detailed and accurate report, how might you make it more manageable? What type of communication skills would that require?
In order to make a complex project more manageable, an individual should follow the tips for project management. Try to define the goals and prioritize what's urgent, then analyze the resource and gather the data. Business communication skills would be require for the business project.
What is the significance of business communication?Business communication refers to the process of sharing information between the people within the workplace or outside the company.
Business communication plays a very significant role in an organization as it helps to establish formal relations between employees and workers. It also helps the employee understanding the goals of a company.
Basically, the main purpose of the business communication is to improve organizational practices and reduce errors.
Learn more about business communication here:-
https://brainly.com/question/19054134
#SPJ1
2) What is the least likely symptom of stress?
A) stomach pain
B) sleeplessness
C) anxiety
D) appetite
Answer:
The least likely symptom of stress among the options provided is D) appetite. Stress can affect individuals in various ways, and while appetite changes can occur as a result of stress for some people (such as increased or decreased appetite), it is generally not considered one of the most common or prominent symptoms.
The other options, stomach pain, sleeplessness (insomnia), and anxiety, are more commonly associated with stress. Stomach pain can be a result of stress-induced tension or digestive issues. Sleeplessness or difficulty sleeping is a common symptom of stress, as the mind is preoccupied or racing with thoughts, making it challenging to relax and fall asleep. Anxiety is closely related to stress and can manifest as feelings of worry, nervousness, or unease. However, it's important to note that individuals may experience stress differently, and symptoms can vary from person to person.
What is an example of SECONDARY market research
Answer:
News articles and Reports
Explanation:
its how they draw their data
Answer: Market research that's already compiled and organized for you. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry.
Explanation: Secondary research uses outside information assembled by government agencies, industry and trade associations, labor unions, media sources, chambers of commerce, and so on. It's usually published in pamphlets, newsletters, trade publications, magazines, and newspapers. Secondary sources include the following: public and commercial sources
If the economy is in long run equilibrium with 6% inflation and 3% economic growth, and the federal reserve permanently decreases the rate of money supply growth, the long run result will be?.
An inflation rate less than 6%, and economic growth rate of 3%.
How does low inflation lead to economic growth?Because the price level growth rate is simply another term for the inflation rate, the inflation rate must fall.Increased economic growth means more products for money to "chase," putting downward pressure on the inflation rate. The lower the inflation rate, the greater are the productive effects of a reduction.Economic growth is assessed by the rate of increase in national income, deflated by the cost of living index.National income was deflated in constant prices by the population indices to account for population growth. Low inflation usually indicates that demand for products and services is lower than it should be, which slows economic growth and lowers wages.This poor demand can even cause a recession with increased unemployment, as we witnessed during the Great Recession a decade ago.To learn more about growth rate of inflation refer
https://brainly.com/question/29230049
#SPJ4