Milovia is a small open economy. the general price level in the economy has been increasing at a rate of about 7.5 percent each year. jane wilson, an industry analyst, is of the opinion that such high inflation is adversely affecting aggregate demand in the economy and therefore its ability to grow. her colleague, harry gomes, however, disagrees. according to harry, some amount of inflation is unavoidable in a growing economy. higher prices for products to increase the level of corporate profits and induce firms to increase aggregate output. jane's argument is based on which of the following assumptions? a. the increase in the price of inputs outweighed the increase in the price of the final product.
b. the milovian currency recently depreciated in the foreign exchange market.
c. the purchasing power of nominal assets declines with an increase in the price level.

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company. the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy. the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress. the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.