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Semmy [17]
2 years ago
15

The general increase in prices over time we pay for good and services is known as inflation. question 5 options: true false

Business
1 answer:
Gala2k [10]2 years ago
8 0

It is true that the general increase in prices over time we pay for goods and services is known as inflation.

<h3>What is inflation?</h3>

Inflation is the term used to describe an increase in the price of goods and services that households buy. It is determined by how quickly these prices fluctuate. Prices frequently rise with time, but they can also fall (a situation called deflation).

The main categories of inflation are as follows:

Demand-pull inflation: It explains how rising prices for products and services can result from increased demand. People will typically pay more for something if there is a shortage of it.

Cost-push inflation:  When demand-pull inflation is active, it frequently starts up. Businesses must raise their pricing as a result of rising raw material costs, regardless of market demand.

Built-in inflation: Employees may start requesting pay increases from their employers as demand-pull inflation and cost-push inflation take place. Employers risk experiencing a labor scarcity if they don't keep their pay competitive.

Built-in inflation occurs when a company increases employee wages or salaries while also trying to maintain profit margins by boosting prices.

To know more about inflation, visit:

brainly.com/question/28190771

#SPJ4

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A highly ethical organization must have all the following elements except Multiple Choice corporate credos. role models. payment
givi [52]

Answer:

The correct answer is letter "C": payment plans.

Explanation:

<em>Highly ethical organizations</em> are those with a well-established <em>Code of Ethics </em>that comprises its <em>corporate credos and values.</em> Within a company, the idea of having "<em>heroes</em>" also helps to spread good practices since they are taken as <em>role models </em>so other employees tend to follow their example. Managers must be aware of the ethical behavior of employees to correct or eliminate any existing threat.

Thus, <em>having different payment plans are not considered in the setting of a corporation's Code of Ethics. </em>

7 0
3 years ago
The cost of debt capital for a firm . a. is equal to the current yield (not YTM) on the firm’s outstanding bonds b. can be calcu
topjm [15]

Answer:

d. can be estimated even if the firm’s bonds are not publicly traded, by looking at the yield to maturity on bonds outstanding from peer group firms with similar ratings and maturity

Explanation:

The cost of Debt for a firm is estimated even if the firm's bonds are not publicly traded, by looking at the yield on bonds outstanding from peer group firms with similar ratings and maturity.

3 0
2 years ago
On january 1, a company issued and sold a $460,000, 3%, 10-year bond payable, and received proceeds of $456,000. interest is pay
Bad White [126]

To find the carrying value of the bonds after the first interest payments, we need to do the calculations to find the interest ..

Calculation of Interest:-

Cash interest payment of $ 6,900 ( 1.5% x $ 460,000) at the end of each semiannual period during the bonds life of 10 years… ( 3% / 2 = 1.5%)

That is $ 6,900 is paid for every six months say from Jan 30th to June 30 and June 30 to Dec 31……

So, every year we will pay $ 13,800 ( $ 6,900 + $ 6,900 ) for 20 periods ( two payments are made for every year, so for 10 years , we need to make the interest payment for 20 periods…)

Now lets amortize a bond discount.. (Amortizing is nothing but paying back

Straight Line Method… This method allocates an equal portion of the total bond interest expense to each interest period .

We divide the total bond interest expense of $ 142,000 by 20

This gives the interest expense of $ 7,100 per period. ( $ 6,900 interest + $ 200 Discount)

Interest Computation

Amount repaid to bondholders

20 interest payments of $ 6,900 = $ 138,000

Par value at maturity =$ 460,000

_________

Total repaid to bondholders = $ 598,000

Less:- Amount borrowed from bondholders = $ 456,000

__________

Total bond interest expenses = $ 142,000

__________

The following table shows the decrease in Discount on bonds payable account and the increase in the bonds carrying value ( Straight line method)

This is the summarization of Discount bond Straight Line amortization..

Semiannual period –end Unammortized Discount Carrying Value

(0) 1 / 30 $ 4,000 $ 456,00

(1) 6 / 30 $ 3,800 $ 456,200

(4,000 -200) ( 456,00+200)

The carrying value of the bonds after the first interest payment is $ 456,200

8 0
3 years ago
Refer to the given list of assets.
Cloud [144]

Answer:

a. Items 1,5,9 and 10

Explanation:

M1 refers to Money Supply which includes physical currencies, coins, demand deposits, amounts in checking accounts, liquid cash and other forms of cash that can be withdrawn immediately eg in ATM.

<u>Items under M1 from the question are:</u>

3. Currency (coins and paper money) in circulation

6. Checkable deposits

M2 refers to money supply that comprises of the items in M1 and also include other types of deposits eg Savings deposits, mutual funds by individuals, time deposits. Funds that even though cannot be readily converted to cash but can be withdrawn with more effort.

<u>Items under M2 from the question are:</u>

2. Non-checkable savings deposits

4. Small-denominated (under $100,000) time deposits

7. Money market deposit accounts

8. Money market mutual fund balances held by individuals

8 0
3 years ago
Although we could describe both the cross-price elasticity of demand between paper coffee cups and plastic coffee lids and the c
Lorico [155]

Answer:

The paper cups and plastic cover lids are complimentary products. When you purchase plastic cups it follows that you would buy the plastic cover. Increase in demand of one leads to increase in demand for the other.

Meanwhile relationship between sugar and artificial sweeteners is one of substitution. Since sugar can replace artificial sweetener and vice versa, increase in demand for on will result in reduced demand for the other.

Explanation:

3 0
3 years ago
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