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3 years ago

Which of the following statements are consistent with how inflation affects the three functions of money? Check all that apply.

Business

1 answer:

Anna [14]3 years ago

6 0

Answer:

B,C, D, E

Explanation:

B. Rising prices (inflation) makes comparism of financial data less reliable. This is one of the major drawbacks of historic financial information because such information does not take into account the impact of inflation.

C. Money loses its attributes as a store of value in inflationary period. This is because the nominal value of money increase through an increase in Consumer Price Index (CPI) while the real value of money drops as the unit amount of purchasing power decrease from increase in prices.

D. The demand for money increases in inflationary period as more money chases few goods. This reduces purchasing power of individuals and leads to rise in prices.

E. This has the potential of reducing purchasing power as money loses its value in periods of inflation.

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3 years ago

In the United States, because worker membership in labor unions has been ________ union impact has been decreasing in the labor

wolverine [178]

In the United States, because worker membership in labor unions has been <u>declining </u>union impact has been decreasing in the labor market.

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We discover that unions adversely have an effect on unemployment rates and the boom fees of gross state product (GSP), productivity, and the populace at the same time as increasing the rate of salary inflation.

The impact of the employment growth charge is bad however not tremendous.

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2 years ago

Enterprises face the challenge of deciding which investments to make and how to allocate scarce resources to competing projects.

Tema [17]

Answer: Business case

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4 years ago

A local utility company needs to make a decision regarding which tire type to use for the truck it uses when servicing the local

Arada [10]

Answer:

Explanation:

Using type B

Rate of gasoline use = 25 miles per gallon

In 1 year - 25000 miles

So, gasoline to be spent = 25000/25=1000

Using type A

Rate of gasoline use = 20 miles per gallon

In 1 year - 25000 miles

So, gasoline to be spent = 25000/20=1250

1250 -1000=250

Thus, by using type B, save up 250 gallons and 250*$3 = $750

Total cost of A:

Gasoline costs for year = 1250*3=$3750; for 6 years $22500

Tires last for 2 years (50000/25000), so it needs to be repurchased 3 times

Tire cost = 3*240*4 = $3000

Total Cost = 3000+22500=25500

Total cost of B:

Gasoline costs for year = 1000*3=$3000; for 6 years $18000

Tires last for 3 years (75000/25000), so it needs to be repurchased 2 times

Tire cost = 2*400*4 = $3200

Total Cost = 3200+18000=21200

Type B is cheapest and lasts longer, so it should be purchased

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4 years ago