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Sedaia [141]
3 years ago
8

38. Money is an imperfect store of value when a. the rate of inflation is high. b. the unemployment rate is high. c. gold prices

are falling. d. businesses are failing due to bankruptcy.
Business
1 answer:
Helen [10]3 years ago
7 0

Answer:

a. the rate of inflation is high

Explanation:

When the inflation rate is high money loses its value because inflation rates decrease people's purchasing power which means that because of inflation they will be able to buy less goods and services with the same amount of money because goods and services cost more. For example if Person A has a million dollars and he can buy 5 houses from that in 2015, if Person A keeps his money in a bank as a store of value and there is 20% inflation it means that  now 5 houses will cost 20% more (1.2*1 million) = 1.2 million. And Person A has now lost value as he will not be able to buy the same amount of houses with the same amount of money because of inflation.

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3 years ago
Where are shares of the reporting company's common stock issued in exchange for cash reported on a statement of cash flows?
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Answer:

Please help me! brainly.com/question/14319457

Explanation:

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8 0
3 years ago
Based on predicted production of 26,000 units, a company anticipates $507,000 of fixed costs and $448,500 of variable costs. The
tatiyna

Answer:

The correct answer is B.

Explanation:

Giving the following information:

26,000 units:

Total variable costs= $448,500

Fixed costs= $507,000

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3 years ago
The combination of debt financing and equity financing that maximizes a firm's value is known as its:
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Answer:

optimal capital structure

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optimal capital structure can be regarded as a combination of

of debt and equity financing which brings about maximization of amarket value in a firm. It should be noted that optimal capital structure is the combination of debt financing and equity financing that maximizes a firm's value.

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