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Ede4ka [16]
2 years ago
10

Inflation is undesirable because it: Multiple Choice always makes the nation poorer. redistributes income from those who can rai

se prices to those who cannot. distorts the information value of prices. makes everyone worse off.
Business
1 answer:
Firlakuza [10]2 years ago
8 0

Inflation is undesirable because it redistributes income from those who can raise prices to those who cannot.

<h3>What is inflation?</h3>
  • In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation.
  • Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
  • A general increase in prices over time diminishes customers' purchasing power because a constant quantity of money will eventually allow for less consumption.
  • Whether inflation is running at 2% or 4%, consumers still lose purchasing power; the higher inflation rate only doubles that loss.
  • Those interest rates that are fixed for the duration of the loan, won't fluctuate in line with inflation.

To learn more about Inflation refer to:

brainly.com/question/15692461

#SPJ4

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3 0
3 years ago
Read 2 more answers
On December 31, Strike Company sold one of its batting cages for $24,440. The equipment had an original cost of $244,400 and has
True [87]

Answer: There was no gain or loss on the sale of this asset.

Explanation: In order to calculate how much profit/loss was made on an asset when it is sold, you have to take the cost price of the asset, and deduct the accumulated depreciation of the asset up to the date of sale. This is known as the book value of the asset, and shows how much it was worth on the day it was sold.

Cost price is the purchase price that the asset was worth on the day it was bought by Strike Company. Accumulated depreciation is the total reduction of the worth of an asset periodically, because of wear and tear.

Book value is calculated as:

Cost price: $244,400

- Accumulated depreciation: ($219,960)

= Book Value = $24,440

However the asset was sold for $24,440. This means that Strike Company sold this asset at its pure value, which is the book value. Thus forfeiting the chance to make a profit, or a loss.

7 0
3 years ago
You own factory A and factory B. The next cash flow for each factory is expected in 1 year. Factory A has a cost of capital of 3
ziro4ka [17]

Answer: See Explanation

Explanation:

First, we have to calculate the worth of factory A which will be:

= Cash flow / Cost of capital

= $19300 / 3.5%

= $19300 / 0.035

= $551428.57

= $551429

Cost of capital of Factory B = Cash flow / Worth

= $19,900 / $545,000

= 0.0365

= 3.65%

Cost of capital of Factory A = 3.5%

Cost of capital of Factory B = 3.65%

Worth of factory A = $551429

Worth of Factory B = $545,000

Therefore, factory A is more valuable than Factory B and Factory B is more risky than Factory A.

6 0
3 years ago
What are the three major flows in the economy?​
sweet-ann [11.9K]

Answer:

Production, consumption and exchange are the three main activities of the economy. Consumption and production are flows which operate simultaneously and are interrelated and interdependent

Explanation:

hope this helps u

5 0
3 years ago
A multinational strategy entails having a separate strategy for each nation in which a company markets its products
Studentka2010 [4]
This statement above would be known to be called a (true/false) question, and based on my information, this statement above would be known to be a "true" statement. This would be true in many marketing companies that would be out there. They would always contain a strategy for each nation, and therefore this would then resolve to which a company would produce it's market productions.

Your answer: True
4 0
3 years ago
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