(1) A gift becomes a bribe when it is given with the intention of influencing someone to act inappropriately or unlawfully. Transparency, accountability, and adherence to ethical standards should guide the assessment of whether a gift crosses the line into bribery.
(2) Corporations can monitor corruption and enforce policies in their foreign branches by implementing robust compliance programs, conducting regular audits, providing training on ethical conduct, fostering a culture of integrity, and collaborating with local authorities and anti-corruption organizations.
(3) Rather than resorting to bribery, companies can focus on building strong relationships based on trust and mutual benefits, offering superior products or services, providing excellent customer support, investing in innovation, and adhering to high-quality standards. By operating ethically and responsibly, companies can create a competitive edge without resorting to illicit practices.
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The White Horse Apple Products Company purchases apples from local growers and makes applesauce and apple juice. It costs $0.60 to produce a jar of applesauce and $0.85 to produce a bottle of apple juice. The company has a policy that at least 30% but not more than 60% of its output must be applesauce. - The company wants to meet but not exceed the demand for each product. The marketing manager estimates that the demand for applesauce is a maximum of 5,000 jars, plus an additional 3 jars for each $1 spent on advertising. The maximum demand for apple juice is estimated to be 4,000 bottles, plus an additional 5 bottles for every $1 spent to promote apple juice. The company has $16,000 to spend on producing and advertising applesauce and apple juice. Applesauce sells for $1.45 per jar; apple juice sells for $1.75 per bottle. The company wants to know how many units of each to produce and how much advertising to spend on each to maximize profit. a. Formulate a linear programming model for this problem. b. Solve the model by using the computer.
a. Non-negativity constraints: x ≥ 0, y ≥ 0
b. The solution to this linear programming problem can be obtained using computer software or solvers specifically designed for linear programming. The software will input the model and constraints and provide the optimal values for x and y that maximize the objective function Z (profit).
a. Linear Programming Model:
Let:
x = number of jars of applesauce produced
y = number of bottles of apple juice produced
Objective function: Maximize profit
Z = 1.45x + 1.75y
Subject to:
Production cost constraint:
0.6x + 0.85y ≤ 16,000
Demand constraint for applesauce:
x ≤ 5,000 + (3 * advertising expenditure for applesauce)
Demand constraint for apple juice:
y ≤ 4,000 + (5 * advertising expenditure for apple juice)
Advertising expenditure constraint:
advertising expenditure for applesauce + advertising expenditure for apple juice ≤ 16,000
Product mix constraint:
0.3x ≤ y ≤ 0.6x
Non-negativity constraints:
x ≥ 0, y ≥ 0
b. The solution to this linear programming problem can be obtained using computer software or solvers specifically designed for linear programming. The software will input the model and constraints and provide the optimal values for x and y that maximize the objective function Z (profit).
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Derek will deposit \( \$ 1,030.00 \) per year into an account starting today and ending in year \( 24.00 \). The account that earns \( 7.00 \% \). How much will be in the account \( 24.0 \) years from
The amount in the account after 24.0 years will be $40,775.43.
To calculate the amount in the account after 24.0 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/amount in the account after t years
P = the initial deposit/annual contribution (in this case, $1,030.00)
r = the annual interest rate (7.00% or 0.07)
n = the number of times interest is compounded per year (assuming annual compounding)
t = the number of years (24.0)
Plugging in the given values into the formula, we get:
A = 1030(1 + 0.07/1)²⁴
Simplifying further:
A = 1030(1.07)²⁴
Calculating the expression:
A ≈ 40,775.43
Therefore, the amount in the account after 24.0 years will be approximately $40,775.43.
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Why poultry in india needs the study to be undertaken (1500 words)
The poultry industry in India requires a comprehensive study to be undertaken due to its significant contribution to the country's economy, the growing demand for poultry products, and the need for sustainable development in the sector.
To sustain and further enhance the industry's growth, it is crucial to undertake a comprehensive study that addresses various aspects of the poultry sector.
Firstly, the study would enable a thorough understanding of the challenges faced by the industry. These challenges include disease outbreaks, inadequate infrastructure, lack of quality inputs, and limited access to finance and technology. By identifying these challenges, the study can provide insights into possible solutions and interventions to overcome them.
Secondly, the growing demand for poultry products necessitates a study to explore opportunities for expansion and diversification. With the increasing population, urbanization, and changing dietary preferences, there is a rising demand for poultry products such as eggs and meat. Understanding market dynamics, consumer preferences, and emerging trends can help in formulating strategies to meet the growing demand and capitalize on market opportunities.
Thirdly, the study would address issues related to animal health and welfare. Poultry diseases can have significant economic and social impacts on the industry. Therefore, it is essential to undertake research on disease prevention, control measures, and best practices in poultry farming to ensure the health and welfare of poultry birds.
Fourthly, improving productivity and efficiency is crucial for the sustainability of the poultry industry. The study would help identify technological advancements, management practices, and breeding strategies that can enhance productivity, reduce production costs, and optimize resource utilization.
Fifthly, ensuring food safety is of utmost importance in the poultry sector. The study would focus on food safety standards, quality control measures, and best practices in poultry production, processing, and distribution. This would help in building consumer trust, meeting regulatory requirements, and enhancing the competitiveness of Indian poultry products in domestic and international markets.
Lastly, the study would contribute to the overall development and sustainability of the poultry sector in India. It would provide a knowledge base for policymakers, industry stakeholders, and researchers to make informed decisions and design policies and interventions that promote the long-term growth and sustainability of the poultry industry.
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The Primary aduantage of the proprictor form of business over the corporate form is A) ease of raising capital B) limited llabllity C) Unlimited life D) avoidence of zouble taxition The primary financial goal of a Coproration is to maximize Coproration is to maximize A) Shaleholders wealth B) earnins per Share () Stock price D) both Share holders Wealth and stock pric The term "boying a bond" is misleding b/c A) A bond can only be bought with assets ofler then mon B) bonds are not available to general pubirc C) Bonds are not held only beld in trust for a byyers beneticialies D) Bonds represent a debt relationship so a band buyer
The primary advantage of the proprietor form of business over the corporate form is C) Unlimited life. In a proprietorship, the business is not a separate legal entity from the owner. As a result, the business does not dissolve upon the death or withdrawal of the owner. It can continue to operate indefinitely as long as the owner desires.
On the other hand, in a corporation, the business is a separate legal entity, distinct from its shareholders. The life of a corporation is not tied to the life of its shareholders. It can continue to exist and operate even if there are changes in ownership or the departure of certain shareholders.
The primary financial goal of a corporation is to maximize **A) Shareholders' wealth**. Shareholders are the owners of the corporation, and their wealth is represented by the value of their shares or stock in the company. Maximizing shareholders' wealth involves increasing the value of the company's stock through strategies that lead to higher profitability, growth, and return on investment.
The term "buying a bond" is misleading because **D) Bonds represent a debt relationship, so a bond buyer** does not actually own the bond. When an individual buys a bond, they are lending money to the issuer (such as a government or a corporation) in exchange for periodic interest payments and the repayment of the principal amount at maturity. The bondholder becomes a creditor of the issuer, and the bond represents a contractual debt obligation. Therefore, the bond buyer does not acquire ownership of the bond itself but rather holds it as a debt instrument.
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"When I first came to Mexico, the plant where I worked still belonged to XYZ (a famous multinational enterprise). XYZ had been contemplating policies and practices regarding equal opportunity in employment decisions (e.g., selection) in regards to staffing the top executive positions abroad, such as the subsidiary CEO, country manager, and key functional heads (e.g., CFO and CIO). The company has paid a lot of attention to training decision-makers on the importance of performance standards as a basis for fair selection decisions." Based on the scenario, the lecture, your notes, and excerpts from the book the instructor asked you to read, how do you foresee the staffing decisions for company XYZ in the subsidiary in Mexico? Do you think that decisions will be unbiased in regards to gender, decisions will remain the same as they were in the past, or decisions will be biased? Elaborate an answer and justify your prediction with the knowledge you gained in today's class.
The scenario and the knowledge gained in today's class, it is difficult to make a definitive prediction regarding the staffing decisions for company XYZ in its subsidiary in Mexico. However, we can analyze the factors that may influence the decision-making process.
Firstly, the scenario mentions that XYZ has been contemplating policies and practices regarding equal opportunity in employment decisions, specifically in staffing top executive positions abroad. This suggests that the company is aware of the importance of fairness and equal opportunity in their selection process.
Additionally, the company has paid attention to training decision-makers on the significance of performance standards as the basis for fair selection decisions. This indicates that XYZ is emphasizing the use of objective criteria to assess candidates, which is a positive step towards ensuring unbiased decision-making.
However, it's important to consider the broader context of gender bias and cultural influences. Mexico, like many other countries, may have cultural and societal norms that could influence the perception of gender roles in the workplace. These norms can inadvertently lead to biases in decision-making processes.
To make a more accurate prediction, we would need additional information on the specific efforts and policies implemented by XYZ to address gender biases and promote equal opportunities. It would also be essential to consider the cultural context in Mexico and any legal requirements or initiatives in place to ensure gender equality in employment.
In summary, while XYZ's focus on equal opportunity and training decision-makers on fair selection decisions is promising, it's necessary to consider the potential influence of cultural factors and gender biases. Without further information, it is challenging to definitively predict whether the staffing decisions in the subsidiary in Mexico will be unbiased. Continuous monitoring, evaluation, and improvement of diversity and inclusion practices would be crucial for XYZ to ensure fair and equitable staffing decisions in their Mexican subsidiary.
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Which of the following would be a microeconomic issue?
A. The government reducing the interest rate to encourage investment spending during a recession B. The government increasing quantitative easing to increase the liquidity in the economy during a recession C. The government subsidising house building to encourage growth during a recession D. The government reducing income taxes to encourage consumer spending during a recession
The government reducing the interest rate to encourage investment spending during a recession Among the given options, Microeconomics choice A would be
considered a microeconomic issue. Microeconomics focuses on the behavior and decisions of individual agents, such as households, firms, and industries. In this case, the government's action of reducing interest rates to stimulate investment spending directly affects individual businesses and their investment decisions. It is a specific measure aimed at addressing economic issues at the individual level rather than broader macroeconomic concerns. The other options (B, C, and D) involve macroeconomic issues as they relate to overall economic conditions, such as liquidity in the economy, growth, and consumer spending. These are broader issues that encompass the functioning of the entire economy rather than focusing on individual agents.
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t/f To be legally sufficient, consideration must include something of economic value
True or False: In order for a contract to be legally binding, consideration must include something of economic value.
True. In contract law, consideration is an essential element for the formation of a valid and enforceable contract.
Consideration refers to something of value that is exchanged between the parties involved in the contract.
It can take the form of money, goods, services, a promise to perform an act, or a promise to refrain from doing something. For consideration to be legally sufficient, it generally must involve a tangible benefit or detriment that has economic value.
Gratuitous promises or acts of goodwill, without any bargained-for exchange, are generally not considered legally enforceable.
Therefore, consideration that includes something of economic value is required for a contract to be considered legally binding.
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36 Which of the following is NOT a common warning sign? Changes in business strategy Requests for increased debt funding Changes in dividend payments Review Later Delays in reporting
The correct answer is "Review Later." "Review Later" is not a common warning sign. The other options - changes in business strategy, requests for increased debt funding, changes in dividend payments, and delays in reporting - are all commonly recognized as warning signs that may indicate potential issues or problems within a business or organization.
"Review Later" is not a common warning sign because it does not indicate any specific concern or potential issue within a business. On the other hand, changes in business strategy, requests for increased debt funding, changes in dividend payments, and delays in reporting are all commonly observed warning signs. These signs may suggest shifts in the company's direction, financial strain, possible financial distress, or transparency issues. Recognizing and addressing these warning signs promptly can help mitigate risks and ensure the overall health and stability of the business.
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Hamilton Corporate reported the following information at December 31, 2021 Long Term Investments 2021 2020 Land Buildings Accumulated Deprec- Buildings Equipment Accumulated Deprec- Equipment $200 $200 Additional Information: The company purchased long term investments during the year, none were sold 1. 2. The company purchased equipment during the year and sold some that cost $100 and had a carrying amount of $50 for a gain of $10 (sold for $60) Prepare the Investing activities section of Hamilton's statement of cash flows. $150 $300 $300 $ 90 $500 $100 $200 $300 $75 $400
The Investing activities section of Hamilton Corporate's statement of cash flows for the year 2021 would include the following:
Purchase of long-term investments: $200 Purchase of equipment: $300 Sale of equipment: $60 (Proceeds from sale) - $50 (Carrying amount) = $10 (Gain on sale) In the Investing activities section, the company would report the cash flows related to the acquisition and disposal of long-term investments and property, plant, and equipment. In this case, Hamilton Corporate purchased long-term investments worth $200 during the year. They also purchased equipment with a cost of $300. Additionally, the company sold equipment with a carrying amount of $50 for $60, resulting in a gain of $10. The proceeds from the sale of equipment would be included as a cash inflow in the Investing activities section. Overall, the Investing activities section summarizes the cash flows associated with investments in assets that are not considered part of the company's day-to-day operations, providing insights into how Hamilton Corporate has allocated its cash for long-term investment and asset acquisition activities.
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The income tax rates for corporate taxpayers apply to taxable estates and trusts. O True False For a trust to be taxable, it must be revocable both as to corpus and income. True O False Estates and trusts are required to file a declaration of estimated income for the current taxable year on or before December 31 of the same taxable year. O True False The taxable income of an estate or trust shall be computed in the same manner and on the same basis as in the case of a corporation. True O False Taxable estates are estates of deceased persons judicially settled. True False
The answers are as follows: The income tax rates for corporate taxpayers apply to taxable estates and trusts.
False
For a trust to be taxable, it must be revocable both as to corpus and income.
False
Estates and trusts are required to file a declaration of estimated income for the current taxable year on or before December 31 of the same taxable year.
False
The taxable income of an estate or trust shall be computed in the same manner and on the same basis as in the case of a corporation.
True Taxable estates are estates of deceased persons judicially settled.
True
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First Choice Carpets is considering purchasing new weaving equipment costing $730,000. The company's management has estimated that the equipment will generale cash inflows as follows: Considering the residual value is zero, calculate the payback period.
The payback period for the weaving equipment is approximately 0.49 years or about 5.9 months. This means that it will take less than 6 months to recover the initial investment in the equipment from the generated cash inflows.
To calculate the payback period, we need to determine how long it will take for the cash inflows from the purchase of the weaving equipment to equal the initial cost of $730,000.
Assuming that the cash inflows are generated evenly over the years, we can use the following formula to calculate the payback period:
Payback Period = Cost of Investment / Annual Cash Inflows
We first need to calculate the annual cash inflows generated by the equipment. Let's assume that the estimated cash inflows are as follows:
Year 1: $100,000
Year 2: $200,000
Year 3: $300,000
Year 4: $400,000
Year 5: $500,000
Total Cash Inflows = $100,000 + $200,000 + $300,000 + $400,000 + $500,000 = $1,500,000
Now we can calculate the payback period:
Payback Period = $730,000 / $1,500,000 = 0.4867 years
Therefore, the payback period for the weaving equipment is approximately 0.49 years or about 5.9 months. This means that it will take less than 6 months to recover the initial investment in the equipment from the generated cash inflows.
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Purrfect Pet Shop takes inventory semi-annually and bases inventory on cost. Beginning inventory for the year was $67,320. Inventory at the end of the first six months was $79,680. Ending inventory for the year was $82,500. Cost of Goods for the year equal $183,750. Compute the inventory turnover at cost.
The inventory turnover at cost for Purrfect Pet Shop is 2.45 times.
To compute the inventory turnover at cost, we need to divide the Cost of Goods Sold (COGS) by the average cost of inventory.
The average cost of inventory can be calculated as:
(Average Inventory) = (Beginning Inventory + Ending Inventory) / 2
So, using the given information:
Average Inventory = (67,320 + 82,500) / 2 = 74,910
Now, we can calculate the inventory turnover at cost:
Inventory Turnover at Cost = COGS / Average Inventory
= 183,750 / 74,910
= 2.45 times
Therefore, the inventory turnover at cost for Purrfect Pet Shop is 2.45 times.
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Give at least two (2) examples for each of the seven (7) sub-categories as sources of wastes and organize them into the three (3) main categories (Move, Hold, Over-do). Examples must not be found in the course notes being used in the class. (7 sources x 2 marks each = 14 +1 correct organization = 15 marks)
Two examples for each of the seven sub-categories as sources of wastes are given below. The examples are organized into the three main categories: Move, Hold, and Over-do.
1. Move: Sources of waste in this category are:
a. Transportation: The unnecessary movement of products from one place to another is an example of waste. For instance, transporting empty boxes from one location to another.
b. Waiting: The wasted time spent waiting for products is an example of waste. For instance, a worker waiting for parts before he can finish assembling a product.
2. Hold: Sources of waste in this category are:
a. Inventory: Overstocking products is an example of waste. For instance, having excess products stored for extended periods.
b. Overproduction: Producing more products than required is an example of waste. For instance, manufacturing goods before an order has been received.
3. Over-do: Sources of waste in this category are:
a. Processing: Adding more features to a product than required is an example of waste. For instance, incorporating costly features in a product when they are not needed.
b. Motion: Overworking employees is an example of waste. For instance, having workers perform repetitive tasks without giving them adequate rest.
4. Defects: Producing faulty products is an example of waste. For instance, items with incorrect specifications, colour, etc.
5. Unused talent: Underutilizing employees' knowledge and skills is an example of waste. For instance, failing to engage employees in decision-making processes.
6. Excess processing: Performing unnecessary operations is an example of waste. For instance, polishing a surface that will not be seen.
7. Non-utilized creativity: Failing to engage employees in innovation and creativity is an example of waste. For instance, failing to solicit ideas from employees on how to improve a product.
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A company has provided the following information about one of its products: Date Transaction 1/1 Beginning Inventory Purchase Purchase 6/5 11/10 Number of Units 280 480 180 Cost per Unit $156 $176 $216 During the year, the company sold 560 units. What is ending inventory using the average cost method? (Do not round intermediate computations.)
The ending inventory using the average cost method for the company's product is $70,480.
To calculate the ending inventory using the average cost method, we need to determine the average cost per unit based on the transactions provided and then multiply it by the number of units in the ending inventory.
First, let's calculate the total cost of the units purchased. We sum up the cost of each purchase transaction: 480 units * $176 per unit + 180 units * $216 per unit.
480 units * $176 per unit = $84,480 180 units * $216 per unit = $38,880
Total cost of units purchased = $84,480 + $38,880 = $123,360
Next, we calculate the weighted average cost per unit. We divide the total cost of units purchased by the total number of units purchased: $123,360 / (480 + 180) units.
Total number of units purchased = 480 units + 180 units = 660 units
Weighted average cost per unit = $123,360 / 660 units = $187.09 per unit (rounded to two decimal places)
Now, let's determine the cost of goods sold (COGS). The company sold 560 units during the year, so we multiply the number of units sold by the weighted average cost per unit: 560 units * $187.09 per unit.
COGS = 560 units * $187.09 per unit = $104,622.40
To find the ending inventory, we subtract the COGS from the cost of units purchased:
Ending inventory = Total cost of units purchased - COGS Ending inventory = $123,360 - $104,622.40 = $18,737.60
Therefore, the ending inventory using the average cost method is $18,737.60.
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Choose a trading/manufacturing company listed on any stock exchange with respect to your chosen company, answer the following questions
1. What is meant by the term decentralization? 2. What benefits result from decentralization? 3. Distinguish between a cost center, a profit center, and an investment center. 4. What is meant by the terms margin and turnover in ROI calculations? 5. What is meant by residual income? 6. In what way can the use of ROI as a performance measure for investment centers lead to bad decisions? How does the residual income approach overcome this problem? 7. What is the difference between delivery cycle time and throughput time? What four elements make up throughput time? What elements of throughput time are value-added and what elements are non-value-added? 8. What does a manufacturing cycle efficiency (MCE) of less than 1 mean? How would you interpret an MCE of 0.40 ? 9. Why do the measures used in a balanced scorecard differ from company to company? 10. Why does the balanced scorecard include financial performance measures as well as measures of how well internal business processes are doing?
Decentralization refers to the dispersal of power and decision-making ability throughout an organization. This implies that the decision-making authority is spread throughout the organization.
This is done to increase employee autonomy and responsibility while also allowing for better decision-making and problem-solving. Decentralization improves decision-making effectiveness and efficiency.
It can also assist in identifying and resolving problems more quickly, as employees are closer to the operations and can better detect issues. Furthermore, it can boost morale and engagement, as employees have a greater sense of ownership over their work and contributions.
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Companies need working capital because:
Group of answer choices
cash inflows and outflows normally don't happen a the same time
their shareholders require it
they have too much short-term debt
they might be considering a merger
Companies need working capital because cash inflows and outflows normally don't happen at the same time.
Working capital is the amount of funds a company has available to manage its day-to-day operations. It is calculated by subtracting a company's current liabilities from its current assets.
A company's current assets include items such as cash, accounts receivable, and inventory, which can be converted into cash within one year. Meanwhile, a company's current liabilities include items such as accounts payable and short-term debt that are due within one year.
Since companies receive cash from sales at different times than they pay for their expenses, they may experience temporary cash shortages. This is where working capital comes in - it provides a cushion of funds to help cover the company's obligations until the cash from sales catches up with the cash needed to pay for expenses.
Therefore, it is important for companies to have sufficient working capital to ensure that they can meet their financial obligations and continue their day-to-day operations.
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a. The firm should produce 13 units. b. The firm should shut down. c. The firm will make an economic loss in the long-run. d. The firm should continue to produce though it will not recover its variable costs.
The firm should shut down if it cannot recover its variable costs, as continuing production would result in further losses.
If the firm is facing a situation where it cannot recover its variable costs, it is operating at a loss in the short run. In such cases, it is economically advisable for the firm to shut down rather than continue production. By shutting down, the firm can minimize its losses and allocate its resources more efficiently.
When a firm cannot recover its variable costs, it means that the revenue generated from selling its products or services is insufficient to cover the variable costs, such as labor, raw materials, and utilities. This indicates that the firm is experiencing a significant decline in demand or facing highly competitive market conditions, resulting in an unsustainable business model.
Continuing to produce under such circumstances would only lead to further financial losses. By shutting down, the firm can reduce expenses, preserve its remaining resources, and explore alternative strategies for restructuring or exiting the market. Shutting down allows the firm to minimize its losses and reassess its operations to potentially reenter the market under more favorable conditions or allocate resources to other more profitable ventures.
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18%, the cost of preferred stock financing is 9%, and the before-tax cost of debt financing is 9%. Calculate the weighted average cost of capital (WACC) given a tax rate of 21% The firm's WACC is 6. (Round to two decimal places.)
To calculate the weighted average cost of capital (WACC), we need to determine the weights of each financing source and multiply them by their respective costs, adjusted for taxes.
Given:
Cost of equity financing (Ke) = 18%
Cost of preferred stock financing (Kps) = 9%
Before-tax cost of debt financing (Kd) = 9%
Tax rate (T) = 21%
Weight of equity (We) = ?
Weight of preferred stock (Wps) = ?
Weight of debt (Wd) = ?
To calculate the weights, we need to know the proportions of each financing source in the firm's capital structure.
Once we have the weights, we can calculate the WACC using the formula:
WACC = (We * Ke) + (Wps * Kps) + (Wd * Kd) * (1 - T)
Since the weights are not provided, it is not possible to calculate the exact WACC. The information given in the question is insufficient to determine the weights of each financing source.
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Given the following information on foreign currency positions (all in $thousands) for Eastpac Bank.
Currency
Assets
Liabilities
FX Bought
FX Sold
Euro
300
170
320
Yen
60
20
100
220
What are Eastpac Bank's net exposure (in $thousands) in Japanese Yen and its exposure to the fluctuation in the AU$/Japanese Yen exchange rate?
a. 0, not exposed to the fluctuation in Japanese Yen exchange rate
b. +80, exposed to the appreciation in Japanese Yen
c. -80, exposed to the appreciation in Japanese Yen
d. -80, exposed to the depreciation in Japanese Yen
e. +80, exposed to the depreciation in Japanese Yen
To determine Eastpac Bank's net exposure in Japanese Yen and its exposure to the fluctuation in the AU$/Japanese Yen exchange rate, we need to calculate the net position in Japanese Yen and the amount of FX Bought and FX Sold in Japanese Yen.
Net Exposure in Japanese Yen:
Assets in Yen: 60
Liabilities in Yen: 20
Net Exposure = Assets - Liabilities
Net Exposure = 60 - 20 = 40
Exposure to the Fluctuation in AU$/Japanese Yen Exchange Rate:
FX Bought in Yen: 100
FX Sold in Yen: 220
Exposure = FX Bought - FX Sold
Exposure = 100 - 220 = -120
Since the exposure is negative (-120), it means that Eastpac Bank is exposed to the depreciation in Japanese Yen. However, the question asks specifically about the exposure to the fluctuation in the AU$/Japanese Yen exchange rate. To determine this, we need to consider the exposure in relation to the AU$.
The exposure to the fluctuation in the AU$/Japanese Yen exchange rate is determined by multiplying the exposure in Japanese Yen by the exchange rate. However, the exchange rate between AU$ and Japanese Yen is not provided in the given information. Without the exchange rate, we cannot accurately determine the exposure to the fluctuation in the AU$/Japanese Yen exchange rate.
Therefore, based on the information given, the correct answer is:
Option a. 0, not exposed to the fluctuation in the Japanese Yen exchange rate.Learn more about fluctuation here
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To determine Eastpac Bank's net exposure in Japanese Yen and its exposure to the fluctuation in the AU$/Japanese Yen exchange rate, we need to calculate the net position in Japanese Yen and the amount of FX Bought and FX Sold in Japanese Yen.
Net Exposure in Japanese Yen:
Assets in Yen: 60
Liabilities in Yen: 20
Net Exposure = Assets - Liabilities
Net Exposure = 60 - 20 = 40
Exposure to the Fluctuation in AU$/Japanese Yen Exchange Rate:
FX Bought in Yen: 100
FX Sold in Yen: 220
Exposure = FX Bought - FX Sold
Exposure = 100 - 220 = -120
Since the exposure is negative (-120), it means that Eastpac Bank is exposed to the depreciation in Japanese Yen. However, the question asks specifically about the exposure to the fluctuation in the AU$/Japanese Yen exchange rate. To determine this, we need to consider the exposure in relation to the AU$.
The exposure to the fluctuation in the AU$/Japanese Yen exchange rate is determined by multiplying the exposure in Japanese Yen by the exchange rate. However, the exchange rate between AU$ and Japanese Yen is not provided in the given information. Without the exchange rate, we cannot accurately determine the exposure to the fluctuation in the AU$/Japanese Yen exchange rate.
Therefore, based on the information given, the correct answer is:
Option a. 0, not exposed to the fluctuation in the Japanese Yen exchange rate.
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.Apply the three-sector model (Real Loanable Funds Market, Real Goods Market, and the Foreign Exchange Market) to assist in explaining either historical description
(A or B) below. There is no "set" answer here. You are the manager doing the analysis and setting up the scenario. Use your own assumptions. Begin the analysis for either A or B in the Foreign Exchange Market and then move to the other two market sectors. Make your own assumptions. Also see Exhibit 17-2 in the text. 1 – 2 pages recommended
A. Expansion of international trade promoted economic growth and development in the
post-World War II global economy. The economies of Japan and Germany were rebuilt,
and both economies were able to achieve economies of scale in the steel and
automobile industries. In the mid-1990s, India and China built labor-intensive industries
in the apparel industry, followed by other labor-intensive industries expanded through an
export-led growth policy on the part of China. Vietnam followed this type of policy
beginning in 1986. The country achieved stable growth, low inflation, and increasing
prosperity. In the early 2000s, South Korea became a major producer of automobiles and expanded production in technology-related consumer goods for export. Currently,
High Income economies (using the World Bank GNI per capita classification system) in
North America, Europe, and the Far East (the Triad Area) engage extensively in trade in
consumer goods. We find that the current level of global exports is about $19 trillion. The
trade between nations of the Triad Area represents about $9.5 trillion. In the euro-zone,
there is a division between stronger nations (Germany and France, for example)
compared to other nations facing significant macroeconomic problems (Greece and
Spain, for example).
B. The economic performances of Argentina, Brazil, and Chile have many common
elements. All three countries had relatively high standards of living in the early part of the
twentieth century but collapsed during the Great Depression. After World War II, they
followed the hyperinflation route, creating full employment and the illusion of rapid
growth. That illusion was soon shattered, leading to popular unrest. The governments
did not institute layoffs among employees of the public sector for fear of exacerbating the
political situation. The budget deficit continued to increase, hyperinflation worsened, and
productivity and the standard of living declined. A common currency, such as the euro,
could help, but only if government policies switch toward those that are more free market
oriented. A major devaluation by one country in a region is very likely to upset the trade
balance for the entire region. Some analysts contend that the adoption of a common
currency would help. (In fact, many economists have suggested that these countries
adopt the dollar, although opposing political pressures based on past policy decisions
would be strong). If nothing is done, various currencies will continue to come under
downward pressure in the future. When one country boosts its exports at the expense of
its neighbors, eventually those neighboring countries will be faced with large trade
deficits and downward pressure on their currencies. Thus, until the Latin American
nations join in a common currency, frequent devaluations – and recessions – are likely
to occur in the future.
2 pages recommended
Foreign exchange market the foreign exchange market is one of the three sectors of the three-sector model. Expansion of international trade, particularly in the post-World War II era, has led to economic growth.
Both nations were able to achieve economies of scale in the steel and automobile industries. In the mid-1990s, India and China created labor-intensive industries in the apparel industry, followed by other labor-intensive industries that grew through an export-led growth policy on China's part.
Vietnam followed this type of policy starting in 1986 and achieved stable growth, low inflation, and increasing prosperity. South Korea became a major producer of automobiles in the early 2000s and increased production in technology-related consumer goods for export.
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please answer question 24-28 and show work please
24. Collins College has annual fixed operating costs of \( \$ 20,000,000 \) and variable operating costs of \( \$ 2,400 \) per student. Tuition is \( \$ 12,000 \) per student for the coming academic y
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To cover both the fixed and variable costs, Collins College needs to enroll at least 2,084 students. At this enrollment level, the total revenue generated from tuition fees would be equal to the total costs incurred by the college.
To determine the breakeven point for Collins College, we need to find the number of students required to cover both the fixed and variable operating costs. The breakeven point occurs when the total revenue equals the total costs.
Let's denote the number of students as 'x'.
The total fixed costs are $20,000,000 and the variable costs per student are $2,400. Since the variable costs are incurred per student, the total variable costs would be $2,400 multiplied by the number of students (x).
The total revenue is obtained by multiplying the tuition per student ($12,000) by the number of students (x).
Setting up the equation:
Total Revenue = Total Costs
$12,000x = $20,000,000 + $2,400x
Simplifying the equation:
$12,000x - $2,400x = $20,000,000
$9,600x = $20,000,000
Solving for x:
x = $20,000,000 / $9,600
x ≈ 2,083.33
Since the number of students cannot be fractional, we round up the value to the nearest whole number. Therefore, the breakeven point for Collins College is approximately 2,084 students.
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TIA HAS VC/UNIT = $34.10. THE VC% = 55%.
TIA CURRENTLY HAS AFTER-TAX NET INCOME = $154,287.
WHAT IS AFTER-TAX NET INCOME IF TIA SELLS ANOTHER 2,000 UNITS? (ASSUME 21% TAX RATE)
The after-tax net income for TIA if they sell another 2,000 units with a 21% tax rate can be calculated as follows:
:Given, VC/Unit = $34.10, VC% = 55%After-tax net income = $154,287Let's first find out the selling price per unit and the contribution margin per unit.Selling price per unit = VC/ (100%- VC%) = $34.10/ (100%-55%) = $75.78Contribution margin per unit = Selling price per unit - VC/Unit= $75.78 - $34.10= $41.68After-tax net income = (Sales - Variable cost) × (1 - Tax rate) - Fixed costLet's find out the fixed cost.Fixed cost = Total cost - Variable cost = $154,287/ (1-55%) - ($34.10 × 2000)= $154,287/ 0.45 - $68,200= $206,860Now let's calculate the after-tax net income for the sale of another 2,000 units.After-tax net income = (Sales - Variable cost) × (1 - Tax rate) - Fixed cost = (2000 × $75.78 - $34.10 × 2000) × (1 - 21%) - $206,860= $110,684.8Thus, the after-tax net income if TIA sells another 2,000 units with a 21% tax rate is $110,684.8.
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Brett set up a fund that would pay her family $5,000 at the
beginning of every month, in perpetuity. What was the size of the
investment in the fund if it was earning 3.00% compounded
semi-annually?
R
Brett would need to invest $337,837.84 in the fund to receive payments of $5,000 at the beginning of every month, in perpetuity, assuming a 3.00% interest rate compounded semi-annually.
To determine the size of the investment in the fund, we can use the formula for calculating the present value of an annuity:
PV = C / r
where PV is the present value of the annuity, C is the constant payment made at the beginning of each period, and r is the interest rate per period.
In this case, the constant payment (C) is $5,000, and the interest rate (r) is 3.00% compounded semi-annually. To calculate the interest rate per period, we need to divide the annual interest rate by the number of periods per year:
r_period = (1 + r_annual)^(1/periods per year) - 1
For semi-annual compounding, the number of periods per year is 2:
r_period = (1 + 0.03)^(1/2) - 1 = 0.0148 or 1.48%
Now we can substitute the values into the formula for present value:
PV = $5,000 / 0.0148 = $337,837.84
Therefore, Brett would need to invest $337,837.84 in the fund to receive payments of $5,000 at the beginning of every month, in perpetuity, assuming a 3.00% interest rate compounded semi-annually.
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4.20 percent coupon municipal bond has 14 years left to maturity and has a price quote of 97.55. The bond can be called in four years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.) Compute the bond's current yield. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Compute the yield to maturity. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Compute the taxable equivalent yield (for an investor in the 36 percent marginal tax bracket). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Compute the yield to call. (Do not round intermediate calculations. Round your answer to 2 decimal places.) × Answer is complete but not entirely correct.
The bond's current yield is calculated by dividing the annual coupon payment by the bond's price. The yield to maturity is the total return anticipated if the bond is held until maturity, taking into account the coupon payments, the bond's price, and the time to maturity. The taxable equivalent yield adjusts the yield for an investor's marginal tax bracket. The yield to call is the yield if the bond is called before maturity, considering the call premium and remaining coupon payments.
The current yield is calculated as the annual coupon payment divided by the bond's price. In this case, the annual coupon payment is 4.20% of the par value ($5,000), which is $210. Dividing $210 by the bond's price of 97.55 gives a current yield of approximately 2.15%.
The yield to maturity considers all the cash flows from the bond, including coupon payments and the principal repayment at maturity. It is calculated by solving the present value equation using the bond's price, coupon payments, and time to maturity. The yield to maturity for this bond would require more information, such as the periodicity of coupon payments and the reinvestment rate assumption.
The taxable equivalent yield adjusts the bond's yield for an investor's tax bracket. It represents the yield required from a taxable bond to generate the same after-tax income as the tax-exempt municipal bond. To calculate the taxable equivalent yield, you would multiply the tax-exempt yield by the inverse of (1 - marginal tax rate). For example, if the marginal tax rate is 36%, the taxable equivalent yield would be the tax-exempt yield divided by (1 - 0.36).
The yield to call represents the yield if the bond is called before maturity. It takes into account the call premium (one year of coupon payments) and remaining coupon payments. To calculate the yield to call, you would need additional information such as the call price and the remaining time until the call date.
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To counteract a recession, the federal government can increase aggregate demand by or increasing spending; decreasing taxes buying less military equipment; investing less in Amtrak increasing spending; increasing taxes ncreasing spending; increasing taxes decreasing spending; increasing taxes
To counteract a recession and increase aggregate demand, the federal government can employ expansionary fiscal policy measures. This involves increasing government spending, decreasing taxes, or a combination of both.
Here are the correct options:
1. Increasing spending: By increasing government spending on infrastructure projects, education, healthcare, or other sectors, the government injects money into the economy, creating jobs and stimulating demand.
2. Decreasing taxes: When the government reduces taxes, individuals and businesses have more disposable income, which they can spend or invest. This increased spending helps boost aggregate demand.
3. Buying less military equipment: This option would actually decrease government spending, which might not be effective in countering a recession as it reduces overall demand in the economy.
4. Investing less in Amtrak: Similarly, reducing investment in Amtrak would lead to decreased government spending, potentially exacerbating the recession rather than stimulating the economy.
5. Increasing taxes: Increasing taxes can reduce individuals' disposable income, leading to lower consumption and decreased aggregate demand. This measure is not typically used to counteract a recession but rather to address budget deficits or control inflation.
To summarize, the correct measures to increase aggregate demand and counteract a recession are increasing government spending and decreasing taxes.
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Kyoko would like to invest a certain amount of money for two years and considers investing in a one-year bond that pays 4 percent and a two-yea bond that pays 9 percent. Kyoko is considering the following investment strategies: Strategy A: In the first year, buy a one-year bond that pays 4 percent. Once that bond matures, buy another one-year bond that pays the forward rate. Strategy B: In the first year, buy a two-year bond that pays 9 percent annually. If the one-year bond purchased in year two pays 9 percent, Kyoko will choose: Which of the foliowing describes conditions under which Kyoko would be indifferent between Strategy A and Strategy B ? The rate on the one-year bond purchased in year two pays 12.104 percent: The rate on the one-year bond purchased in year two pays 13.386 percent. The rate on the one-year bond purchased in year two pays 14.240 percent. The rate on the one-year bond purchased in year two pays 14.810 percent.
To determine the conditions under which Kyoko would be indifferent between Strategy A and Strategy B, we need to compare the returns from both strategies.
Strategy A:
In the first year, Kyoko buys a one-year bond that pays 4 percent. The return from this investment is 4 percent.
At the end of the first year, Kyoko receives the maturity amount from the one-year bond and uses it to purchase another one-year bond that pays the forward rate.
Strategy B:
In the first year, Kyoko buys a two-year bond that pays 9 percent annually. The return from this investment is 9 percent.
In the second year, Kyoko receives the interest payment from the two-year bond, which is also 9 percent.
To compare the returns of both strategies, we need to calculate the total return for each strategy over the two-year period.
For Strategy A:
Total Return = 4 percent (return from the first year) + Forward Rate (return from the second year)
For Strategy B:
Total Return = 9 percent (return from the first year) + 9 percent (return from the second year)
We are looking for the conditions under which Kyoko would be indifferent between the two strategies, meaning the total return from Strategy A is equal to the total return from Strategy B.
If the rate on the one-year bond purchased in year two pays 12.104 percent, Strategy A's total return would be:
Total Return = 4 percent (return from the first year) + 12.104 percent (return from the second year)
If the rate on the one-year bond purchased in year two pays 13.386 percent, Strategy A's total return would be:
Total Return = 4 percent (return from the first year) + 13.386 percent (return from the second year)
If the rate on the one-year bond purchased in year two pays 14.240 percent, Strategy A's total return would be:
Total Return = 4 percent (return from the first year) + 14.240 percent (return from the second year)
If the rate on the one-year bond purchased in year two pays 14.810 percent, Strategy A's total return would be:
Total Return = 4 percent (return from the first year) + 14.810 percent (return from the second year)
Kyoko would be indifferent between Strategy A and Strategy B if the total return from Strategy A is equal to the total return from Strategy B. Therefore, we need to compare the total returns under each scenario to determine the condition(s) that make Kyoko indifferent between the two strategies.
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Suppose a publicly-traded firm begins posting all of its business transactions on a blockchain that shareholders can view in real-time. Discuss how this blockchain disclosure policy would help shareholders monitor and analyse the firm's performance. Provide specific examples to support your answer and explicitly state any assumptions you make in your arguments.
Implementing a blockchain disclosure policy for a publicly-traded firm would have several benefits for shareholders in terms of monitoring and analyzing the firm's performance. Here are some ways in which blockchain-based disclosure can enhance shareholder transparency and analysis: Real-time transaction visibility, Immutable and auditable records, Enhanced shareholder engagement, Increased market efficiency.
Real-time transaction visibility: With blockchain technology, shareholders can access real-time information about the firm's business transactions. This level of transparency enables shareholders to stay updated on the company's financial activities and track the flow of funds. They can identify any significant transactions, such as large investments, acquisitions, or divestitures, as soon as they occur.
For example, shareholders can observe when the company makes a significant capital expenditure, allowing them to assess the impact on cash flows and make informed judgments about the firm's investment decisions.
Immutable and auditable records: Blockchain provides an immutable and transparent record of all transactions, ensuring data integrity and auditability. Shareholders can have confidence in the accuracy and reliability of the disclosed information, as it cannot be altered retroactively without leaving a trace.
Assuming that the firm's blockchain implementation includes all relevant financial data, shareholders can review financial statements, including income statements, balance sheets, and cash flow statements, with assurance that the information has not been tampered with.
Enhanced shareholder engagement: Blockchain technology can facilitate direct shareholder engagement and participation in corporate decision-making processes. Shareholders can provide feedback, vote on resolutions, and propose changes through smart contracts or decentralized applications built on the blockchain.
For instance, shareholders can participate in voting for important matters such as board elections, executive compensation, or major corporate actions, ensuring that their voices are heard and potentially influencing the firm's direction.
Increased market efficiency: By providing real-time, transparent information, blockchain can improve market efficiency and facilitate better analysis by shareholders and other market participants. This can lead to more accurate valuations and informed investment decisions.
Assuming that the blockchain disclosure policy allows for open access to information, shareholders can compare the firm's performance against industry peers, analyze financial ratios, and monitor key performance indicators. They can make data-driven investment choices and identify potential areas of concern or opportunities for improvement.
It's important to note that the effectiveness of blockchain-based disclosure relies on assumptions such as the accuracy and completeness of the data entered into the blockchain, the security of the blockchain infrastructure, and the level of shareholder engagement with the disclosed information. These factors need to be carefully considered and implemented to maximize the benefits of blockchain technology for shareholders' monitoring and analysis.
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Required information Use the following information for the Exercises below. (Algo) The following inforriason applies fo the questions displayod bolow? Huthon Compary reports the folowing contribution margin income statement: Exercise 18-11 (Algo) Computing break-even units and sales LO P2 1. Compute break-even point in units 2. Compute breakieven point in sales dollars. Required information Use the following information for the Exercises below. (Algo) The following information appless to the questions dspliyed beiowf Mudson Compary reports the following contribution margin income statement. Exercise 18−12( Aigo ) Target income and margin of safety LO C2 1. Assume Hudson has a target income of 5 t58.000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achleves its target income, what is its margin of safety (in percent)? (foound your answer to 1 decimal place.)
Exercise 18-11 focuses on computing the break-even point in units and sales dollars, while Exercise 18-12 involves determining the sales needed to achieve a target income and calculating the margin of safety.
What are the main objectives of Exercise 18-11 and Exercise 18-12 in relation to Hudson Company's financial analysis?The information provided is related to two exercises: Exercise 18-11 and Exercise 18-12.
Exercise 18-11 requires the computation of the break-even point in units and sales dollars for Hudson Company. This involves determining the number of units that need to be sold or the amount of sales required to cover all costs and achieve a zero profit.
Exercise 18-12 focuses on target income and margin of safety for Hudson Company. The first part involves calculating the amount of sales needed to generate a target income of $58,000.
The second part requires determining the margin of safety, which is the difference between the actual sales and the break-even sales, expressed as a percentage.
Both exercises involve analyzing the financial performance of Hudson Company and using key metrics such as break-even point, sales dollars, target income, and margin of safety to evaluate its profitability and risk.
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Which of the following is a potential weakness of this model? O It does not account for seasonal effects. It assumes that price and sales are inversely related. It uses time-series data. 12. Exercise 6.12 If prices grew at a compound growth rate of 3% per annum in the United States and 0.09% per annum in Japan for the past eight years, what exchange rate represents PPP today if the two currencies, eight years ago, were in parity and exchanged at a rate of JPY 109/USD? JPY 149.7/USD JPY 86.7/USD JPY 85.4/USD JPY 147.6/USD
The potential weakness of the given model is that it assumes price and sales are inversely related and does not account for seasonal effects or incorporate time-series data. This limitation may affect the accuracy and reliability of the model's predictions.
Regarding the exchange rate representing purchasing power parity (PPP) between the United States and Japan, the calculations show that if prices grew at a compound growth rate of 3% per annum in the US and 0.09% per annum in Japan over the past eight years, the PPP exchange rate today would be JPY 86.7/USD.
The potential weakness of the given model is that it assumes price and sales are inversely related. It does not account for seasonal effects or incorporate the use of time-series data. This limitation may affect the accuracy and reliability of the model's predictions.
To calculate the exchange rate representing purchasing power parity (PPP) today, we need to consider the compound growth rates of prices in the United States and Japan over the past eight years.
For the United States, prices grew at a compound growth rate of 3% per annum. Using this information, we can calculate the price index in the United States as (1 + 0.03)^8 = 1.264 or a 26.4% increase.
For Japan, prices grew at a compound growth rate of 0.09% per annum. Using this information, we can calculate the price index in Japan as (1 + 0.0009)^8 = 1.0072 or a 0.72% increase.
Since the two currencies were in parity eight years ago, the exchange rate at that time was JPY 109/USD.
To find the PPP exchange rate today, we divide the Japanese price index by the US price index and multiply it by the initial exchange rate:
(1.0072 / 1.264) * 109/USD = JPY 86.7/USD
Therefore, the correct exchange rate representing PPP today is JPY 86.7/USD.
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Assume that an economy is in the long run equilibrium and inflation is equal to the inflation target. Using the graph of the DAD-DAS model, answer the following questions: a) In period t+1 the central bank changes its estimation of the natural real interest rate p'. The new estimation is not correct: the estimated natural real interest rate is higher than the true rate (p' > p). This mistake lasts for two periods (period t+1 and t+2). In the period t+3 the central bank reestimates the value of the natural rate and this time makes no mistake. How will the mistake of the central bank affect inflation and output in the periods t+1 and t+2? Show this situation in a graph. b) Show the adjustments to the long run equilibrium in this economy. Explain the shifts of the curves.
In periods t+1 and t+2, the central bank's mistaken estimation of the natural real interest rate will lead to higher inflation and lower output. This can be depicted in the DAD-DAS model graph. In the long run, the economy will adjust back to the equilibrium through shifts in the aggregate demand (DAD) and aggregate supply (DAS) curves.
a) The central bank's mistaken estimation of a higher natural real interest rate (p' > p) will result in a contractionary monetary policy. This contractionary policy will reduce aggregate demand, shifting the DAD curve to the left. The decrease in aggregate demand will lead to a decrease in output and an increase in unemployment in periods t+1 and t+2. However, the inflation rate will temporarily rise due to the contractionary policy reducing output below the long-run equilibrium level.
b) In the long run, the central bank reestimates the value of the natural rate and corrects its mistake. The correct estimation of the natural real interest rate (p) leads to an expansionary monetary policy to stimulate the economy. The central bank increases the money supply, shifting the DAD curve to the right.
This expansionary policy will increase aggregate demand, output, and employment, bringing the economy back to its long-run equilibrium level. As the economy adjusts, inflation will gradually return to the inflation target.
In summary, the central bank's mistaken estimation of the natural real interest rate temporarily affects inflation and output in periods t+1 and t+2. However, in the long run, the economy adjusts back to the equilibrium through shifts in the DAD and DAS curves, returning inflation to the target level and output to its potential level.
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