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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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Assume a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is 5 units of output

Arada [10]

Answer:

A) the firm should hire additional workers.

Explanation:

if the marginal production of the tenth worker is 5 units or output and the price of each unit is $4, the the workers total marginal product revenue (MPR) = 5 units x $4 per unit = $20

Since the cost of hiring that tenth worker is $15 (less than MPR), then the company should hire more additional workers until the MRP = labor cost

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3 years ago

The Federal Reserve (or Fed) often executes its policy by selling or buying U.S. government securities in the open market, which

dem82 [27]

Answer:

a) When interest rates on U.S. government securities increases, then the Federal Reserve sells those securities in the open market in order to decrease the money supply. This is contractionary monetary policy of the Federal Reserve. As interest rates are indirectly affected by open market operations, the Federal Reserve sells securities on the open market to reduce the amount of money in circulation to combat rising inflation in the economy.

(b) The federal funds rate, the interest rates charged on the loans to individuals and firms and the rates of bank deposits will increase. As a result, the demand for bank deposits will increase and the demand for other debt securities will decrease. This in turn will increase the yield offered on these instruments.

4 0

3 years ago

What is the combination of two or more tables and their data called?

Lapatulllka [165]

Answer:

Query join

Explanation:

7 0

3 years ago

Read 2 more answers

The recovery time objective (RTO) downtime metric is the defined as the point in time to which lost systems and data can be reco

Elena L [17]

Answer:

False

Explanation:

Recovery time objective(RTO) - The main objective of RTO is to work on the real-time designation. It works to define lost or re-entered data during the downtime of the network. The purpose of RTO is to define the actual working time before a disturbance begins.

It defined to that time period during which the unprocessed process can be recovered after the disturbance occurs during any business operation.

8 0

3 years ago

Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico

MakcuM [25]

Answer:

A)VCPU = VC / UNITS

$8,190,000 / 450,000

=$18.20

B)CONTRIBUTION MARGIN PER UNIT =$ 3,510,000 / 450,000

=$7.80

C)CONTRIBUTION MARGIN RATIO = CONTRIBUTION / SALES

=>30%

D)SALES PRICE = $26

BEP IN UNITS = FC / CONTRIBUTION PER UNIT

= $2254200 / $7.8

=289,000 UNITS

BEP IN $ = FC / PV RATIO

=$2254200 / 30%

= $7,514,000

2 A) SALES REQUIRED = (FC + DESIRED PROFIT ) / PV RATIO

= $(2254200 + 296,400) / 30%

=$8,502,000 / 26

=$327,000units

Explanation:

8 0

3 years ago