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Deffense [45]
3 years ago
12

Inflation is 20 percent. Debt is $2 trillion. The nominal deficit is $300 billion. If the expected inflation rate falls from 20

percent to 15 percent, by how much does the real deficit change? Expected inflation does not change the real deficit. The real deficit falls by 15 percent. The real deficit rises by 15 percent. The effects of a change in expected inflation cannot be quantified.
Business
1 answer:
romanna [79]3 years ago
4 0

Answer:

Option A is correct ( Expected inflation does not change the real deficit)

Explanation:

Real deficits are real variable and it is not affected by the change in inflation rate, because inflation is nominal variable. So, nominal value of deficits can be affected, but real value of deficits will remain same.

You might be interested in
If the opportunity cost of manufacturing machinery is lower in the United States than in Britain and the opportunity cost of man
kogti [31]

Answer:

.a. import sweaters from Britain and export machinery to Britain.

Explanation:

A lower opportunity cost of manufacturing a particular goods means that a country uses fewer inputs in production compared to other nations.  The country can produce more quantities of the product using similar factors of production. A lower opportunity cost in manufacturing will make a country's output cheaper compared to when that product is manufactured in other nations.

Varying production costs form the basis of international trade. A County imports commodities that are produced cheaply elsewhere and exports the goods it can manufacture at a lower cost. The united states can produce machinery at a lower cost than Britain.  Britain will be prudent to import machinery from the united states rather than produce.  Britain produces sweaters using fewer inputs that the US. The US will find importing  sweaters from Britain more economical compared to manufacturing.  

3 0
3 years ago
Sneed Corporation reported balances in the following accounts for the current year: Beginning Ending Income tax payable $ 54 $ 3
bogdanovich [222]

Answer:

$181

Explanation:

Given that,

Beginning:

Income tax payable = $54

Deferred tax liability = $75

Ending:

Income tax payable = $34

Deferred tax liability = $145

Tax expenses during the year = $231

Amount of tax paid during the year:

= Tax expenses during the year + (Beginning - ending tax payable) - (Ending - Beginning deferred tax liability)

= $231 + ($54 - $34) - ($145 - $75)

= $231 + $20 - $70

= $181

7 0
3 years ago
If more capital is produced in a given year, what can be expected to happen?
anzhelika [568]

Answer:

A

Explanation:

More money, more demand

people wouldn’t want to work long hours short pay

and with more money the Money has less value

4 0
3 years ago
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $308,000, total variable expenses were $215,600, an
liq [111]

Answer: 1) CM / Sales = CM Ratio

CM = 306,000 - 238,680 = 67,320

CM Ratio = 67,320 / 306,000 = 0.22

2) CM Ratio x 2,500 = 550

Explanation:

3 0
3 years ago
The Assembly Department of​ Intuitive, Inc., manufacturer of​computers, had​ 4,500 units of beginning inventory in​ September, a
Pepsi [2]

Answer:

Units accounted for: 7,500

Explanation:

We are going to follow physical units so the method W/a or FIFO is not relevant for this step:

Beginning and transferred in are the input, fro mwere the units come from:

beginning WIP              4,500

transferred in                3,000

Units to account for:   7,500

While, ending WIP and transferred-out are were the untis are now:

Ending WIP                  6,000

transferred-out             1,500

Units account for        7,500

8 0
3 years ago
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