How do unemployment and interest rates relate in short run? Draw and explain the revenue-rate curve, and comment on Laffer's hypothesis. Explain how outstanding stock appreciation rights could increase reported
A) How do (should) companies choose an inventory valuation method (i.e. LIFO, FIFO, weighted-average, specific-identification) to use? B) Why do companies even need to do this? What is the entire purpose? For LIFO and FIFO, how do you find...
Gold as an Inflation Hedge Gold serves as an inflation hedge. Its value increases in tandem with the general cost of products. This is partially due to the limited supply of gold, which allows owners to better protect their purchasing power despite low-interest rates. ...
In late 2024, we launched a large-scale research project to better understand how performance ratings relate to employee engagement. To do that, we needed to standardize how companies were rating performance. In the process of standardization, we learned a LOT about rating scales. For example,...
Interest rate risk is the risk that an investment's value will change due to a change in the absolute level of interest rates, the spread between two rates, the shape of the yield curve, or any other interest rate relationship. This type of risk affects the value of bonds more directly ...
With upsets coming from all directions—whether they be supply chain disruptions, surging inflation, or spikes in interest rates and energy prices—companies need to focus on being prepared and ready to act at all times. The key is not just to bounce out of crises,...
Interest rate riskis the risk that an investment's value will change due to a change in the absolute level of interest rates, the spread between two rates, the shape of the yield curve, or any other interest rate relationship. This type of risk affects the value of bonds more directly th...
In this context, the magnitude of the sensitivity of the nominal interest rate to the inflation gap matters for the type of transition paths of the macroeconomic variables in two ways. First, the interplay between the feedback rule and the Fisher equation implies that the inflation rate (and ...
Key economic indicators such as trade balances, GDP growth rates, and inflation can be affected by oil price fluctuations. Rising oil prices can increase inflationary pressures, especially when the economy is already operating close to its full potential. In addition, countries that import oil may ...
Annuities can help investors side-step these risks while also taking advantage of historically high rates. So far, fixed annuities have seen the biggest increase in sales, but there has been strength in other types of annuities as interest and awareness grows. ...