Hi guys, help me please.
Using a structured approach to decision making and the facts in the scenario above,
explain and evaluate the long term funding options available to the company to
finance their planned new division. (this is the quesion)
Scenario
PCP Ltd, established in 1990, manufactures optical instruments for markets in the UK
and the USA. Since 2007, their market in the USA has been in decline, due to an influx
of lower precision, cheaper supply from the Far East. Because of this, in 2009, PCP
decided to focus on supplying specialist optical products for use in Medical procedures
and research, opening a specialised manufacturing division based in Chicago. This
division has performed well, even though the costs of supporting management and
supply functions from the company HQ in the UK have been higher than was anticipated
in their original return calculations, which employed only NPV to establish the viability of
investment in the division. The company is now considering the development of a further
new division to research and develop new optical medical technology, following recent
market research data which indicated that the medical technology market is growing
across the developed world. PCP Ltd has not declared a cash dividend since 2017,
although a stock dividend was issued in 2020.

Answers

Answer 1

Explanation:

Hi guys, help me please.

Using a structured approach to decision making and the facts in the scenario above,

explain and evaluate the long term funding options available to the company to

finance their planned new division. (this is the quesion)

Scenario

PCP Ltd, established in 1990, manufactures optical instruments for markets in the UK

and the USA. Since 2007, their market in the USA has been in decline, due to an influx

of lower precision, cheaper supply from the Far East. Because of this, in 2009, PCP

decided to focus on supplying specialist optical products for use in Medical procedures

and research, opening a specialised manufacturing division based in Chicago. This

division has performed well, even though the costs of supporting management and

supply functions from the company HQ in the UK have been higher than was anticipated

in their original return calculations, which employed only NPV to establish the viability of

investment in the division. The company is now considering the development of a further

new division to research and develop new optical medical technology, following recent

market research data which indicated that the medical technology market is growing

across the developed world. PCP Ltd has not declared a cash dividend since 2017,

although a stock dividend was issued in 2020.


Related Questions

An article in the Economist observed that "people of all ages would gain from policies that boosted growth and productivity."
Source: "Slower Growth in Ageing Economies Is Not Inevitable," Economist, March 28, 2019.
a. What do people gain when the economy experiences growth and improved productivity?
O A. Real wages increase when workers produce more output per hour.
O B. In general, increased productivity and economic growth are the key to rising living standards.
C. Workers receive higher real wages that allow them to buy more of the goods and services that firms produce.
D. Only A and B are correct.
O E. All of the above are correct.
b. Does increasing productivity automatically increase growth? Briefly explain.
O A. No, accumulating more inputs—such as labor, capital, and natural resources is the key to automatically increasing growth.
B. No, this assumption only holds true for high-income countries like the United States.
C. Yes, increasing productivity should automatically increase growth as measured by nominal GDP.

Answers

A. When the economy experiences growth and improved productivity, E. All of the above are correct.

b.  accumulating more inputs—such as labor, capital, and natural resources is the key to automatically increasing growth.

What is economic growth?

This is a growth that exists in an economy due to the fact that there is an increase in the number of goods and services that are produced in the economy.

The growth is measured with comparison between two different periods of time.

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Blossom Company purchased a delivery truck for $32,000 on July 1, 2022. The truck has an expected salvage value of $4,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2022 and 12,000 in 2023. Blossom uses the straight-line method of depreciation. (a) Compute depreciation expense for 2022 and 2023. Depreciation Expense 2022 2023 Straight-line method$ $

Answers

The straight line depreciation expense in 2022 is $1500.

The straight line depreciation expense in 2023 is $3000.

What is the depreciation expense in 2022 and 2023?

The striaght line depreciation method spreads out the depreciation expense equally over the useful life of the project.

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($32,000 - $4,000) / 8 = $3000

The depreciation expense each year would be $3000 except in 2022 when the truck was used for 6 months.

Depreciation expense in 2022 = 6/12(3000) = $1500

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Simone, owner of the Blue Canoe Coffee Shop, ran a report showing the identified valued customer visits the shop on average 15 times in a 30-day period. Simone now wants to break down the information further to determine how many visits she should expect in a 20-day period from a tracked value customer. How many visits should Simone expect

Answers

Answer:

 30 day period the average number o…

Research from the Blue Canoe Coffee Shop revealed that the identified valued client visits the shop an average of 15 times in a 30-day period. The average number during a 30-day period.

What is research?

Research is a process of systematized inquiry that entails the collection of data; documentation of critical collection; and analysis and interpretation of that data/aggregation, in accordance with suitable epistemologies set by specific occupational group fields and academic discipline scientists in the 19th and 20th centuries dug up graves and disturbed sacred sites and human remains in pursuit of their research into indigenous cultures.

As scientists need to research new things as they are willing to grave the land and find the things in it. They need to find new things from it. Research The Blue Canoe Coffee Shop did a survey that revealed the identified valued client visits the shop an average of 15 times in a 30-day period. The average number during a 30-day span.

Therefore, Research from the Blue Canoe Coffee Shop revealed that the identified valued client visits the shop on average

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Assume there are six companies in a certain industry. Four companies have $10 sales apiece, while two companies have $5 sales each. What is the industry's four-firm concentration ratio?

Answers

Answer:

An industry consists of six firms with annual sales of $300, $500, $400, $700, $600, and $600, respectively. a. What is the industry's four firm concentration ratio? b. What is the industry's Herfindahl-Hirschman index? c. Is this industry highly concentrated? Explain.

Explanation:

health insurance is designed to cover

Answers

Answer: Loss of income due to accidents or sickness and healthcare expenses



Explanation:

The Sealing Company has 1,500 bonds outstanding that are selling for $1,060 each. The company also has 5,000 shares of preferred stock at a market price of $32 each. The common stock is priced at $26 a share and there are 36,000 shares outstanding. What is the weight of the common stock as it relates to the firm's weighted average cost of capital?

Answers

The weight of the common stock as it relates to the firm's weighted average cost of capital is 35%.

What is the weighted average cost of capital?

The weighted average cost of capital computes a firm's cost of capital based on the firm's average cost of capital from all sources: common stock, preferred stock, bonds, and other forms of debt.

The weight of the common stock can be determined by dividing the common stock market value by the total capitalization from all sources.

Data and Calculations:

Outstanding:

Bonds payable = $1,590,000 (1,500 x $1,060)

Preferred stock = $160,000 (5,000 x $32)

Common stock = $936,000 (36,000 x $26)

Total debts and equity = $2,686,000

Weight of common stock = 35% ($936,000/$2,686,000 x 100)

Thus, the weight of the common stock as it relates to the firm's weighted average cost of capital is 35%.

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Discuss the benefits of timely, appropriate, detailed information. How can a value be assigned to these characteristics?

Answers

Detailed information helps in making timely decision in an organization on what to do and how to do them.

What is information?

Information are those facts or findings about a subject that has been learned either through research about something or an individual.

Benefits of detailed information include;

It helps in making timely decision in an organization.

It helps to manage resources appropriately.

Therefore, value can be assigned based on how important this benefits are to the organization or individual.

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PLEASE ANSWER
Which is an example of collateral consequences?
A. A craft store owner who sold defective blankets must pay
back her customers' money.
B. A man who stole computers from his company wears an
ankle monitor for one year.
C. A clerk who stole credit card information cannot get a job
after his release from prison.
D. A woman who ran a red light at a busy intersection must
pay a substantial fine.

Answers

Answer:

C.

Explanation:

Collateral consequences are legal and regulatory restrictions that limit or prohibit people convicted of crimes from accessing employment, business and occupational licensing, housing, voting, education, and other rights, benefits, and opportunities.

In this scenario, the clerk cannot get a job anymore after he stole credit card information. He cannot be trusted anymore due to his actions.

The example of  collateral consequences is a clerk who stole credit card information cannot get a job after his release from prison. Thus option (C) is correct.

What is  collateral consequences?

Collateral consequences refer to the additional penalties or legal disabilities that result from a criminal conviction or arrest, beyond the direct sentence imposed by the court.

These consequences can include loss of voting rights, difficulty finding employment or housing, ineligibility for government assistance programs, and restrictions on the ability to obtain professional licenses or own firearms, among others.

A clerk who stole credit card information cannot get a job after his release from prison is an example of  collateral consequences. Therefore, option (C) is correct.

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Ngwenya (Pty) Ltd incurred the following legal expense during the 2022 year of assessment ended 28 February 2022: i) R7 000 legal costs for debt collection. ii) R22 000 legal costs relating to the drawing up of an agreement to purchase a piece of land. iii) R48 000 relating to a dispute with a client of Ngwenya (Pty) Ltd who sued the company for supplying incorrect goods. Ngwenya (Pty) Ltd's lawyers were successful in defending the company on this matter. Determine the amount that is deductible by Ngwenya (Pty) Ltd relating to legal fees. a. R7 000 b. R55 000 c. R77 000 d. R29 000​

Answers

If the company incurred legal expense during the 2022. The amount that is deductible by Ngwenya (Pty) Ltd relating to legal fees is R29,000.

Legal expenses deductible

Using this formula

Legal expenses deductible= Legal costs for debt collection+ Legal costs relating to the drawing up of an agreement

Let plug in the formula

Legal expenses deductible=R7 000 +R22,000

Legal expenses deductible=R29,000

Therefore the amount that is deductible by Ngwenya (Pty) Ltd relating to legal fees is R29,000.

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Geer Corporation has had the following returns for the past three years, 10%, -9%, and 14%. Calculate its compound annual returns.

Answers

The compound annual returns rate for Geer Corporation with the past three years' returns of 10%, -9%, and 14% is 4.5%.

What is the compound annual return?

The compound annual return of an investment is the annualized rate of return that considers the compound effect of the investment for each year.

The compound annual returns rate can be computed using an online finance calculator as below.

The computed rate can be applied to an imaginary investment amount to prove the mathematics as below.

Data and Calculations:

N (# of periods) = 3 years

I/Y (Interest per year) = 4.5%

PV (Present Value) = $1,000

PMT (Periodic Payment) = $0

Results:

FV = $1,141

Total Interest $141

Maths:

Year 1: $1,000 x 4.5% = $1,045

Year 2: $1,045 x 4.5% = $1,092

Year 3: $1,092 x 4.5% = $1,141

Proof:

Year 1: $1,000 x 10% = $1,100

Year 2: $1,100 x -9% = $1,001

Year 3: $1,001 x 14% = $1,141

Thus, the compound annual returns rate for Geer Corporation with the past three years' returns of 10%, -9%, and 14% is 4.5%.

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GIVING BRANLIEST!!!!!!!!!!!!!!!!!!
What are some examples of Employees who represent two careers from the Arts, AV Technology & Communication Cluster

Answers

What are some examples of Employees who represent two careers from the Arts, AV Technology & Communication Cluster:

Broadcast TechnicianSoundboard OperatorEquipment operatorActorGraphic DesignerInterior Designer

 

   I attached a diagram that I found with more examples

Hope that helps!

Please answer quickly

Answers

it c because your teacher is going to give then their phone so is positive

You are reviewing the capital structure of your business. You find that your business is financed with 70% cash and 30% debt.
Your required rate of return for your business is 10%.
Your debt cost is 7%
You are in the 20% tax bracket.
Explain the weighted average cost of capital?
What if you used 80% debt and 20% cash? What would be your new WACC?
How would using more debt in this example affect your profitability as a business?

Answers

The meaning of weighted average cost of capital is simply the mean cost of attracting investors, whether bondholders or stockholders.

WACC = 0.0868 WACC'' = 0.0648

What would be your new WACC?

Generally, for 30% Debt and 70% Cash,  the Cost of Debt after is mathematically given as

X= 0.07 * (1 – 0.20)

X= 0.056

Therefore

WACC = (0.70 * 0.10) + (0.30 * 0.056)

WACC = 0.0868

In conclusion,  for 80% Debt and 20% Cash

WACC'' = (0.20 * 0.10) + (0.80 * 0.056)

WACC'' = 0.0648

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State five Features of advertisement​

Answers

Answer:

Inform and persuade

Identified sponsor

Sell or promote ideas, goods and services

paid form

non-personal presentation

inform & persuade

identified & sponsor

varied objective s

use of Media

Imagine you are the project manager for a team that has just finalized a project and released the product to the client. Now it is time to do an evaluation, and you know that when evaluating the success of a project, there are a number of important evaluation questions to ask. Make a list of five questions that you would include on your evaluation sheet. Make sure that each question is applicable to all people working on the project. Provide a brief explanation of why you would include each question.

Answers

Answer:

What progress has been made?

Were the desired project objectives achieved?

Do the project results justify the project inputs?

Is every team member satisfied with the result?

What could have been done better?

Explanation:

That's the answer I put.

For a project manager it is the duty and task of mine to monitor the things very carefully.

What is Project Manager?

Project manager is actually that person who actually plays an leading role in actually planning and executing the projects.

So the five question are-

What progress has actually been made?

Were the actual desired project objectives achieved?

Do the project results justify the overall project inputs?

Is every team member is merely satisfied with the result?

What could have basically been done better?

Therefore Project manager are responsible and accountable for the entire projects the overall project team.

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What was the problem that created bank runs?

Answers

The problem that created bank runs was fear of a bank's unfolding insolvency, which may or may not be legitimate, and it usually deepens the banking crisis.

What are the causes of bank runs?

Bank runs occur when many depositors withdraw their deposits in droves from their banks based on some fear the banks could experience liquidity problems.

This implies that a bank run is a result of panic and not insolvency resulting from illiquidity.

For example, the stock market crash of 1929, when thousands of bank customers withdrew their deposits, leaving the banks with no cash.  The effects were that loans went bad and farmers became illiquid and unable to operate.

Thus, the problem that created bank runs was fear of a bank's unfolding insolvency, which may or may not be legitimate, and it usually deepens the banking crisis.

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Good planning and wise use of insurance can eliminate all risk. True or false?

Answers

Answer:

False.

Explanation:

Good planning and wise use of insurance are some ways you can reduce risk, but it won't eliminate all risk.

benefits of non legislative methods of resolving consumer conflict

Answers

Answer:

dekha !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Read Zoom Video Communications and discuss how Zoom Video Communications illustrate the sources of service sector growth by commenting on information technologi
7. Internet as an enabler, Innovation, and changing demographics

Answers

Zoom Video Communications is a platform that allows communication via the internet in real time, being a facilitating tool for business.

How does innovation impact business?

It allows internal and external improvements to be incorporated, such as the digital age for example, which through the internet has revolutionized the way business can be carried out, with real-time communication regardless of geographic location.

Demographic changes are also a process resulting from the innovations that made globalization possible, making multicultural environments and businesses more focused on diversity.

Therefore, information technology was the factor that simplified the business sector by enabling greater reliability and speed in processes, generating more competitiveness for industries.

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Identify each scenario as an example of expansionary fiscal policy, contractionary fiscal policy, or not an example of fiscal policy. a. An increase in the money supply is fiscal policy. b. A decrease in taxes is fiscal policy.

Answers

Based on the tenets of fiscal policy, the following are true:

An increase in money supply is not an example of fiscal policy. A decrease in taxes is expansionary fiscal policy.

What is fiscal policy?

Fiscal policy refers to things that the government does in order to influence the economy through spending and taxation.

When there is a decrease in taxes for instance, this is expansionary fiscal policy as the government is trying to increase the amount that people have to spend.

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Upstake Ltd offers a range of financial services to consumers and small businesses. It is listed on GSE and usually its share price performs in line with market expectations, but its board has been criticised by shareholders at the most recent shareholders’ meeting. Although executive remuneration recommended by the directors was approved at the meeting, a large number of shareholders present complained about the level of remuneration enjoyed by directors and gave the company notice that the shareholders as a body would be looking at taking action to reduce this, if necessary by removing some directors or even the whole board. Finally several questions were asked about the company’s regulatory compliance with regard to CSR and sustainability reporting.

(a) Explain to the board the key issues for shareholders in relation to directors’ remuneration in a listed company.

(b) Explain to the board how the GRI G4 guidelines on sustainability reporting may help the company in reporting on its sustainable development

Answers

According to the principles of corporate governance in the GRI G4 guidelines, every listed company ought to have a remuneration committee appointed by the Board.

What is the role of the Remuneration Committee?

The role of the Remuneration Committee are

to define and craft the company's policy as regards Remuneration; andto ensure equal remuneration for women and men.

Some of the advantages of using the GRI - Global Reporting Initiative (G4) guideline on sustainability reporting are:

It helps to improve the performance of the organization in relation to sustainability. Hence if there is any practice such as oversized remunerations that are unsustainable, it will be highlighted.

It helps to engage and improve stakeholder relations.

It also helps to up risk management and communications with the investors and shareholders.

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Entries for Factory Costs and Jobs Completed

Entrepreneurial Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $2,740 of indirect materials and $33,140 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:
Job 301 Job 302
Direct materials $28,340 Direct materials $13,250
Direct labor 10,900 Direct labor 5,600
Factory overhead 5,995 Factory overhead 3,080
Total $45,235 Total $21,930

Job 303 Job 304
Direct materials $40,370 Direct materials $8,160
Direct labor 12,000 Direct labor 1,600
Factory overhead — Factory overhead —

Journalize the summary entry to record each of the following operations for January (one entry for each operation):
Question Content Area

a. Direct and indirect materials used. If an amount box does not require an entry, leave it blank.


Work in Process

Work in Process


Factory Overhead

Factory Overhead


Materials

Materials
Feedback Area
Feedback

a. Record direct materials costs in the work in process account, and indirect materials costs in the factory overhead account.
Question Content Area

b. Direct and indirect labor used. If an amount box does not require an entry, leave it blank.


Work in Process

Work in Process


Factory Overhead

Factory Overhead


Wages Payable

Wages Payable
Feedback Area
Feedback

b. Record direct labor costs in the work in process account, and indirect labor costs in the factory overhead account.
Question Content Area

c. Determine the factory overhead applied to Jobs 303 and 304 (a single overhead rate is used based on direct labor cost).
Job 303 $
fill in the blank 632c6b093053fda_1
Job 304 $
fill in the blank 632c6b093053fda_2
Feedback Area
Feedback
Incorrect
Question Content Area

d. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). If an amount box does not require an entry, leave it blank.


Work in Process

Work in Process


Factory Overhead

Factory Overhead
Feedback Area
Feedback

d. Apply factory overhead based on direct labor costs.
Question Content Area

e. Completion of Jobs 301 and 302. If an amount box does not require an entry, leave it blank.


Finished Goods

Finished Goods


Work in Process

Work in Process
Feedback Area
Feedback
Question Content Area

f. Determine the balance of the work in process account on January 31.

Answers

The entry to record the operations for January is: Debit Work in Process $90,120; Debit Factory Overhead $2,740; Credit  Materials $87,380.

Journal entries

a. Debit Work in Process $90,120

($28,340+$13,250+$40,370+$8,160)

Debit Factory Overhead $2,740

Credit  Materials $87,380

($90,120-$2,740)

b. Debit Work in Process $30,100

($10,900+$5,600+$12,000+$1,600)

Debit Factory Overhead $33,140

Credit  Wages Payable  $63,240

($30,100+$33,140)

c. Debit nWork in Process $16,555

(30,100×55%)

Credit Factory Overhead $16,555

Predetermined overhead rate:

Job 301: $5995/$10,900 =55%

Job 302: $3080/$5600=55%

Direct Labour Cost=(10,900 +5600+12000+1600)

Direct Labour Cost=$30,100

d. Debit Finished Goods $67,165

($45,235+$21,930)

Credit Work in Process $67,165

Inconclusion the entry to record the operations for January is: Debit Work in Process $90,120; Debit Factory Overhead $2,740; Credit    Materials $87,380.

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A manager with _____ skills has the ability to deal effectively with people inside and outside the organization.

Answers

Answer:

Interpersonal

Explanation:

PLEASE MARK ME AS BRAINLIEST AND HAVE A NICE DAY :)

Perdon Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting
process, Perdon is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be
allocated to each product line. The information shown below relates to overhead.
Mobile Safes Walk-in Safes
200
50
300
200
Units planned for production
Material moves per product line
Purchase orders per product line
Direct labor hours per product line
450
350
800
1,700
(a)
* Your answer is incorrect.
The total estimated manufacturing overhead was $280,000. Under traditional costing (which assigns overhead on the basis of
direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, eg. 12.25.)
(1)
One mobile safe
$
350
per unit
(2)
One walk-in safe
$
1647
per unit

Answers

Under the traditional costing method (which assigns overhead on the basis of direct labor hours), the amount of manufacturing overhead costs assigned to the following by Perdon Corporation are:

1) One mobile safe    $448  per unit

2) One walk-in safe   $3,808 per unit

What is a predetermined overhead rate?

A predetermined overhead rate is used by the traditional costing method, unlike the Activity-based costing system (ABC), which uses activity drivers and cost pools.

The traditional costing method assigns overhead costs based on a companywide cost driver, for example, direct labor hours.

Data and Calculations:

Total overhead = $280,000

                                                          Mobile Safes     Walk-in Safes   Total

Units planned for production                   200                     50             250

Material moves per product line              300                    200           500

Purchase orders per product line            450                    350           800

Direct labor hours per product line         800                 1,700         2,500

Predetermined overhead rate per direct labor hour = $112 ($280,000/2,500).

Total overhead costs assigned to        $89,600         $190,400

                                                          ($112 x 800)    ($112 x 1,700)

Overhead per unit                                     $448     $3,808

                                                    ($89,600/200)    ($190,400/50)

Thus, under the traditional costing method, the amount of manufacturing overhead costs assigned are $448  per unit of Mobile Safe and $3,808 per unit of Mobile Safe.

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The quantity theory of money states
that MV = PQ.
Given:
M= 30
V = 50
P = 10

What value would "Q" need to be to balance
the equation?

A. 50

B. 100

3. 150

Answers

Answer:

3. 150

Explanation:

Substitute the letters for the numbers and solve.

MV = PQ=

30×50 = 1500

10 × 150 = 1500

Q= 150

Which statement below accurately describes Hope’s gross wages?

Answers

Can you provide an image of some kind?

3. During Michael Jordan's NBA career (
percentage of 83.5% in regular seas
career, how many completed free thro
redictions: On
Accessibility: Investigate
OBI

During Michael Jordan's NBA career (1984–2003), he averaged a free throw completion percentage of 83.5% in regular season play. If Jordan threw 8,772 free throws in his career, how many completed free throws did he make?

Answers

Answer:

7324

Explanation:

We need to find the number of completed free throws out of total free throws

Since he completed 83.5% of them, you find 83.5% of 8772

83.5% can be rewritten as 0.835

[tex]8772 \times 0.835 = 7324.62[/tex]

We don't round up because it isn't 1 complete free throw. 0.62 is not 1 complete free throw so round down

A $1,000 bond quoted at _____ would be purchased or sold at a discount.

a. 110
b. 100
c. 98
d. 105

Answers

A $1000 bond quoted at 98 would be purchased or sold at a discount
The answer is 98 , if the bond is sold above 100 it will be premium

In the context of exporter and buyer relationships, the value of sales is high but business impact is low in which of the following relationship types?

Answers

The transactional relationship exist where value of sales is high but business impact is low since emphasis are on pure transaction rather than any other matters.

What is a business relationship?

This means the connections that exist between the the people that engage in commerce transactions such as from:

buyer to sellerbuyer to exportersupplier to buyer.importer to buyer etc.

The main types of relationships that exist in the business are transactional, functional, affiliative and strategic relationships.

Therefore, the transactional relationship is the answer.

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Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.

Answers

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be _higher_and real GDP to be higher.


What is Expansionary fiscal policy ?

Expansionary fiscal policy can be defined as the type of fiscal policy in which government intend to increase the aggregate money supply while on the other hand cut or reduce the tax rate for the purpose of economy growth.

In a situation were real GDP fall below potential real GDP this tend to lead to increase in both inflation rate and real GDP.

Inconclusion the inflation rate will be _higher_and real GDP will be higher.

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