All categories

2 years ago

A gold standard ensures a long-run tendency toward price stability because

1 answer:

7 0

A gold standard ensures a long-run tendency toward price stability because the cost of producing an ounce of gold stays relatively constant overtime.

<h3>What is a gold standard?</h3>

A gold standard is the system, abandoned in the Depression of the 1930s, by which the value of a currency was defined in terms of gold, for which the currency could be exchanged.

Therefore, the correct answer is the cost of producing an ounce of gold stays relatively constant overtime.

learn more about a gold standard: brainly.com/question/2222040

#SPJ12

You might be interested in

A _____ is a legally-binding agreement between two or more parties. Select the best answe from the choices provided. contract la

umka2103 [35]

I'm pretty sure the answer is Contract

8 0

4 years ago

Read 2 more answers

Consider Derek's budget information: materials to be used, $64,750; direct labor, $198,400; factory overhead, $394,800; work in

natita [175]

Answer:

Option (c) is correct.

Explanation:

Given that,

Materials to be used = $64,750;

Direct labor = $198,400;

Factory overhead = $394,800;

Work in process inventory on January 1, = $189,100;

Work in progress inventory on December 31, = $197,600

Firstly, we are calculating the manufacturing cost by adding direct material, direct labor cost and factory overhead. It is calculated as follows:

= Direct material + Direct labor + Factory overhead

= $64,750 + $198,400 + $394,800

= $657,950

Cost of goods manufactured determine the value of goods produced during a period of time. It refers to the cost that is incurred to convert the raw material into the finished goods.

Therefore, the cost of goods manufactured is calculated as follows:

= Manufacturing cost + Opening work in process - Closing work in in process inventory

= $657,950 + $189,100 - $197,600

= $649,450

3 0

3 years ago

The Freebird Turbocharger is being recalled. All customers who submitted warranty cards can have their installed turbochargers s

lubasha [3.4K]

Answer:

Explanation:

1. c. To inform a customer about a recall

2. a. To retain the customer’s goodwill

7 0

3 years ago

Suppose a city that operates local electric and natural gas companies wants to raise revenues by increasing its rates for electr

leva [86]

Answer: Inelastic

Explanation:

Price elasticity could be defined as when the desire for a product changes as it's price changes. When people's desires changes or they are no longer interested as the price for the commodity goes up. Inelastic demand is defined as when the buyers demand does not change or is not influenced as the price of the commodity goes up, rather the demand decreases than increasing. The price rise will increase city revenues if the elasticity of demand for electricity and natural gas is elastic.

7 0

4 years ago

Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive price

borishaifa [10]

Answer:

1) sales revenue 61,995.26

2) lease receivables 61,995.26 debit

sales revenue 61,995.26 credit

cost of good sold 56,000 debit

truck inventory 56,000 credit

truck 61,995.26 debit

lease payable 61,995.26 credit

$\left[\begin{array}{cccccc}$Time&$Beg&$Cuota&$Interes&$Amort&$Ending\\0&61995.26&7000&&7000&54995.26\\1&54995.26&7000&1649.86&5350.14&49645.12\\2&49645.12&7000&1489.35&5510.65&44134.47\\3&44134.47&7000&1324.03&5675.97&38458.5\\4&38458.5&7000&1153.76&5846.24&32612.26\\5&32612.26&7000&978.37&6021.63&26590.63\\6&26590.63&7000&797.72&6202.28&20388.35\\7&20388.35&21000&611.65&20388.35&0\end{array}\right]$

For the lessor will be interest revenue while interest expense for the lessee

cash 7,000 debit

interest revenue 1,649.86 credit

lease receivables 5,510.65 credit

--entry for the lessor--

lease payable 5,510.65 debit

interest expense 1,649.86 debit

cash 7,000 credit

--entry for the lessee--

cash 21,000 debit

interest revenue 611.65 credit

lease receivables 20,388.35 credit

--entry for the lessor--

lease payable 20,388.35 debit

interest expense 611.65 debit

cash 21,000 credit

--entry for the lessee--

Explanation:

1) the sales revenue will be the present value of all the lease payments and the residual value of the asset or the bargain-option

Present Value of Annuity-due

$C \times \displaystyle \frac{1-(1+r)^{-time} }{rate}(1+rate) = PV\\$

C 7,000

time 8

rate 0.03

$7000 \times \displaystyle \frac{1-(1+0.03)^{-8} }{0.03}(1+0.03) = PV\\$

PV $50,611.9807

PRESENT VALUE OF LUMP SUM

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 14,000.00

time 7.00

rate 0.03

$\frac{14000}{(1 + 0.03)^{7} } = PV$

PV 11,383.28

PV of the lease: 50,611.98 + 11,051.73 = 61,995.26

2) the lessor will have a lease receivable while the lessee has a lease payable.

3 0

3 years ago