The higher the expected rate of inflation:?
A. ?the lower is the loss in purchasing power of investors.
B. ?the higher is the required rate of return on investment.
C. ?the lower is the maturity premium required by the investors.
D. ?the higher is the money supply in the economy.
E. ?the lower is the tax rate in the economy.
Answer: B
You might also like to view...
Floors, Inc offers terms of 2/10, n/30 to credit customers. Tile Magic Corp purchased 100 tile cutters with a list price of $20 each on August 5, 2015, on account. If Tile Magic Corp pays the amount of the invoice for its purchase on August 14, 2015, how much cash will Floors receive from Tile Magic Corp?
a. $1,764 b. $1,800 c. $1,960 d. $2,000
On July 1, 2016, Falcon Company received a $20,000 promissory note for services from Jordyn Company. The annual interest rate is 5%. Principal and interest are paid in cash at the maturity date of June 30, 2017. The effect on Falcon's financial statements on July 1, 2016 is as follows
a. Assets increase; owners' equity increases b. Assets decrease and owners' equity decreases c. Assets decrease d. No net change in assets
In an ethical decision-making workshop, the facilitator should divide attendees into teams by grouping together those who ______.
a. gave very different responses to questions b. gave similar responses to questions c. are similar in age and life experience d. have roughly the same amount of tenure at the company
A textual block on a poster should typically not exceed ______ words.
a. 10 b. 25 c. 50 d. 100