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dangina [55]
2 years ago
6

In 2017 Sabrina earned an annual salary of $100,000 as an engineer. In 2018, her income rose to $105,000. The inflation rate in

2018 was 2%. How did Sabrina’s nominal income and real income change in 2018 compared to 2017?
answer choices
Nominal income increased and real income increased

no
Business
1 answer:
ivolga24 [154]2 years ago
3 0

Answer:

Both Sabrina's nominal and real income increased

Explanation:

Her nominal income during 2017 was $100,000 and it increased to $105,000 during 2018,  a $5,000 increase.

Sabrina's real income during 2017 was $100,000 (using 2017 as the base year), and her real income during 2018 was = $105,000 / 1.02 = $102,941. That means that her real income increased by $2,941

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The president of State University wants to forecast student enrollment for this academic year based on the following historical
Dovator [93]

Answer:

Option (b) 19,500

Explanation:

Data provided in the question:

Year                 Enrollments (A_t)

5 years ago         15,000

4 years ago         16,000

3 years ago         18,000

2 years ago         20,000

Last year              21,000

α = 0.5

Forecast for two years ago  = 16,000

Now,

Forecast for last year

i.e year 5

F₅ = (1 - α ) F₄ + α (A₄)

here,

= ((1 - 0.5 ) × 16,000 ) + ( 0.5 × 20,000  )

= 8,000 + 10,000

= 18,000

Thus,

Forecast for this year

F₆ = (1 - α)F₅ + α(A₅)

= ( (1 - 0.5 ) × 18, 000 ) + ( 0.5 × 21,000 )

= 9,000 + 10,500

= 19,500

Hence,

Option (b) 19,500

6 0
2 years ago
A flight route is served by American Airlines (AA) and Southwest Airlines (SW). Suppose American is the industry leader American
tatiyna

Answer:

The correct answer is b) American will leave fares unchanged and Southwest will leave fares unchanged.

Explanation:

The Nash Balance is a situation where individuals or players have no incentive to change their strategy taking into account the strategy of their opponents.

In the Nash equilibrium, the strategy chosen by each participant of a conflict or game is optimal, given the strategy chosen by the others. In other words, nobody will gain anything if they decide to change their strategy under the assumption that the other individuals do not change theirs.

It should be noted that under the Nash equilibrium the greatest gain is not necessarily obtained for all individuals or players as a whole. It is only true that each responds optimally to the strategy of others. In many cases, individuals would like to be able to reach another balance with higher profits but fail to do so because they face the risk of being betrayed.

7 0
3 years ago
Brockman Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be​ $35
Mama L [17]

Answer:

Required loan = $16000

Explanation:

given data

beginning cash balance = ​ $35,000

cash disbursements = $127,000

cash receipts = $126,000

ending cash balance wants = $50,000

to find out

How much would Brockman Company need to borrow

solution

we get here Ending cash balance that is express as

Ending cash balance = beginning cash balance + cash receipts - Cash disbursement     ..........................1

put here value we get

Ending cash balance = $35000 + $126000 - $127000

Ending cash balance = $34000

and required loan to borrow will be here as

required loan = ending cash balance wants - Ending cash balance    .................2

put here value we get

Required borrow = $50000 - $34000

Required loan = $16000

3 0
2 years ago
What is the yield to maturity (YTM) on a share of Six Flags B $1.81 preferred stock if an investor buys the stock at the followi
Roman55 [17]

Answer:

Answer is given below.

Explanation:

Preferred stock yield = dividend/ stock price

a) dividend =$1.81 , stock price =$30

Preferred stock yield = $1.81/$30= 6.033%

b) dividend =$1.81 , stock price =$25

Preferred stock yield = $1.81/$25=7.24 %

8 0
2 years ago
You have $64,000 in a savings account that pays 2% annual interest and the
klio [65]

Answer:

$793.60

Explanation:

Inflation refers to the general increase in prices. It reduces or erodes the purchasing power of a currency.

Interest rate represents the rate of money growth from an investment or savings.

Inflation will, therefore, decrease purchasing power while interest rate will add to the currency strength. Loss or gain in purchasing power will be determined by the difference between the inflation rate and the interest rates.

In this case, the loss in purchasing power will be the inflation rate (3.24%) - interest rate (2%).

=3.24%-2%

=1.24%

1.4% decline in purchasing power will equal to 1.4% x $64,000

= 1.24/100 x $64,000

=0.0124

=$793.60

7 0
2 years ago
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