Assess the impact on UK macroeconomic performance of a prolonged period of deflation. Deflation means a fall in the price level; it is a negative rate of inflation. Currently, the MPC target an inflation rate of CPI 2% +/-1 If deflation is caused by a fall in aggregate demand or sluggish growth, then there could be several economic problems. Firstly, when prices are falling, consumers tend to delay spending, especially big purchases; this is because they expect goods to be cheaper in
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11, 2011 Chapter 13: Problem 13-5: How is it possible for an employee stock option to be valuable even if the firm's stock price fails to meet shareholders' expectations? Solution: Employees are given the option of buying stocks at a specified time at a specified price without investing any money. For example, if the price of stock is $10 today and the employee is given the option to buy 1000 shares at the price of $10 per share two years from now. If the stock price increases to $12 per
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average total cost and then mark up the price to yield a target rate of return.” (Brickly, Smith, Zimmerman, p. 211). Companies use this approach to protect themselves from increase in production costs by adding their desired rate of return. This approach is also used by many companies because of its simplicity. With supply contracts, it guarantees reimbursement of cost and producing profit with no risk of loss. (Accountingtools.com, para. 2). 2) Potential problem with using cost plus pricing is that
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relevant in understanding the economic inequalities in Egypt which led to the Revolution in 2011. The American Revolution was fought because of numerous unresolved conflicts that the colonists had with the British. Even after the war, there were problems still lingering. Some of these issues included freedom of expression, voting rights and political participation, and the Inflation of goods. Many of these disagreements resulted in rioting and protests, as well as boycotting of goods and such. Let’s
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Our sample size is 30(Male 3, Female 27). We have used some variables (Dependent& independent). The variables are Consumer’s preference, Culture, Buying ability, Personality, Price, Value, Perception, Social status, Consumer Learning, Psychological drive, Promotional program. The major problems we found that are high price and unavailability of these products. We think that, if the company tries to minimize the cost and make available these products they will capture more market share and consumers
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Jeepney drivers are trying to pass the responsibility of paying the high oil price in the world wide market to the customers. Customers are complaining why does it happen and they are concern about the probable effects of it to the economy. THESIS STATEMENT Oil Price Hike in the world market is the factor for jeepneys high fare and its effect is the rising of prices of basic goods. STATEMENT OF THE PROBLEM 1. What are the factors for jeepney’s high fare? 2. In general, what are
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Executive Summary The Problem: Merton Truck Company has been experiencing difficulties related to their financial performance, and they do not know which is the optimal product mix to maximize profits and performance. Group 2 was asked to make recommendations and analyze the given situation to eliminate the difficulties and come up with the right product mix and the optimal solutions considering different alternatives and scenarios. The Solution: Linear Programming was used to analyze the different
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Mining 1 How Data Mining Is Related to Technical Analysis Technical analysis (TA) is concerned with discovery of recurring patterns in financial market time series for the purpose of predicting and profiting from trends and trend reversals the prices of freely traded assets such as stocks, market indexes, exchange traded funds (ETF), commodities, currencies and financial futures and options . Objective TA is restricted to patterns that can be represented numerically and trading systems that
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Partial credit – Solution correct, but little work shown. Partial credit – Solution incorrect, all work shown where appropriate. No credit – No attempt at a solution or incorrect solution with little work shown. |Text |Problem |Your Solution |Instructor | | |
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most cost allocation problems involve transfer pricing problems, in this problem, the formula being used consists of monthly expenditures for both fixed and variable costs divided by actual miles flown. b. As passenger miles flown increases, what happens to the cost per passenger mile? - The average price charged falls with the rising numbers of passenger miles. Therefore, the variable costs will increase while the fixed cost is fixed, resulting in the decrease in average price charged. c. Describe
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