If the expected inflation rate is 3 percent, the nominal interest rate is 5 percent, and the actual inflation rate turns out to be 4 percent, then the realized real interest rate is ____ than the expected real interest rate and borrowers ____ relative to lenders.

A. less; gain
B. less; lose
C. greater; gain
D. greater; lose


Answer: A

Business

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The two cofounders of Network Appliance, a data-storage firm in Sunnyvale, California, were feuding with each other because one founder couldn't stick to his decisions, which drove the other founder crazy. A(n) ____________ began working with the warring executives in separate sessions to solve the problem.

A. organizational behavior specialist B. family doctor C. informational technologist D. acquisition consultant E. labor relations specialist

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Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:    Selling price$90   Units in beginning inventory 0Units produced 3,400Units sold 3,000Units in ending inventory 400    Variable costs per unit:  Direct materials$21Direct labor$38Variable manufacturing overhead$6Variable selling and administrative expense$4Fixed costs:  Fixed manufacturing overhead$54,400Fixed selling and administrative expense$3,000 What is the net operating income for the month under variable costing?

A. $5,600 B. $6,400 C. $12,000 D. $(20,400)

Business

Answer the following statements true (T) or false (F)

1. Strategic plans detail how the operational plan will be achieved. 2. Strategic planning is focused on the day-to-day operations of the nonprofit. 3. Strategic management is an integrated approach that links strategy to implementation 4. The SWOT exercise is used to identify an organization’s strengths, weaknesses, opposition, and trends. 5. The mission statement explains the reason an organization exists.

Business

Sensitivity analysis on the economic order quantity (EOQ) formula can help the operations manager answer several questions on how to manage inventories. Which one of the following questions is NOT answered by EOQ sensitivity analysis?

A) How critical are errors in estimating demand (D), inventory holding cost (H), and setup cost (S)? B) What should happen to lot sizes if interest rates drop? C) What should happen to cycle inventory if the demand rate increases? D) What should happen to lot sizes if supply and lead-time uncertainty increase?

Business