Neutron inc., is one of the leading electric car manufacturers in northbay, a developing economy. neutron's sales increased by more than 20 percent this year compared to the previous year, which started a debate within the company about whether the firm should increase prices. among those in favor of a price hike is eric johnson, the operations head at neutron. eric is of the opinion that given the high demand for neutron's cars, the firm should increase price to improve profits. mike wilson, the ceo of the firm, however, feels that a price increase would adversely affect the demand for neutron's products because he thinks consumers in this industry are more price conscious than brand loyal. which of the following, if true, will support eric's view? a. the economy of northbay is expected to grow at a remarkable pace of 9 percent in the upcoming year. b. a recent market research report reveals that consumer confidence is low. c. the current rate of unemployment in northbay is high at 10 percent. d. the marginal propensity to consume is approximately 0.3 for an average household in northbay. e. northbay's aggregate imports decreased by 2 percent this year.

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)

Hubert manages a grocery store in a country experiencing a high rate of inflation. to keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. his employees regularly deal with customer annoyance over the frequent price changes. this is an example of the of inflation.

Which of the statements is true about the values recorded in the balance sheet of a firm?