This is True that In the United States, inflation reached double-digit rates in the 1970s and early 1980s but has since declined and recently, has been relatively mild.
<h3>What is inflation?</h3>
A general increase in the cost of goods and services is referred to as inflation. Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
When prices for goods and services increase rapidly, there is rapid inflation, which reduces the purchasing power of savings. Oil prices, currency speculators, rapacious businesspeople, and avaricious union leaders were held responsible for The Great Inflation.
Numerous businesses were destroyed and countless people were harmed by the Great Inflation and the recession that followed.
Cause for the decline in inflation:
- Reduced government spending,
- Stock market declines,
- Consumer desire to save more money,
- Tighter monetary regulations
When the economy's output expands more quickly than the amount of available credit and money, falling prices can also occur spontaneously
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Answer:
a. Inflation
Explanation:
In the context of economics, inflation refers to the increase in the price of goods and services
Moreover, we also know that
(1 + Nominal rate of return) = (1 + real rate of return) × (1 + inflation rate of return)
According to the given situation, it is mentioned that The general goods and services prices are expected to rise substantially over the next five years which represents the concept of inflation
Hence, the option a is correct
Answer:
$0
Explanation:
Since Mr. A already owns 75% of common stock (and 85% of nonvoting stock), the extra 5% will result in a total of 80% (and 90%), that means that he cannot recognize any loss or gain resulting from this transaction. This applies to all stockholders that own at least 80% of a company's stocks and transfer property in exchange for more stocks.
Answer:
Explanation:
According to the given data we have the following:
1 euro=1.11 dollars
1 peso=0.10 dollars
Hence, 11.10 peso=1.11 dollares
So, 1 euro=11.10 peso
Therefore, 1/11.10 euro=1 peso
0.09009 euro=1 peso
The euro-peso rate is 0.09009 euro=1 peso
Answer:
an externality
Explanation:
Externality -
It is the cost or the benefit received by the third party , is known as externality .
The third party does not have any control over the creation of the cost or the benefit .
The externality can be negative as well as positive and can arise from the production or consumption of the services and goods .
hence , the correct term fro the given statement is an externality .
