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3 years ago

What are the costs of inflation? Which of these costs do you think are most important for the U5. economy?

Business

1 answer:

vesna_86 [32]3 years ago

5 0

Explanation:

Menu cost, shoe leather cost, losing money and wealth redistribution from creditors to debtors through inflation.

Most people cut down their spending when they are not making enough money or when there is continuous increase in price, during this period people are mindful of what they spend money on, this will lead to lowered economic growth over a long period of time.

The most important will be the effect of money losing it's value, the fact that money loses its purchasing power which will lead to decrease in demand for goods and services as well as lack of savings will increase the bottleneck on welfare services as people will rely more on them, this will hurt US the most.

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Use the information below to answer questions 1-3. Call Corporation is a wholesaler that sells a single product. Management has

MrMuchimi

Answer:

Fixed Component of the selling, general adn adminsitrative cost 147,000

Explanation:

We calculate the fixed cost using the high low method.

$\left[\begin{array}{ccc}High&7000&294700\\Low&6000&273600\\Difference&1000&21100\\\end{array}\right]$

We subtract high from low the difference is that 1,000 units generates 21,100 dollars of cost

variable cost per unit then will be:

21,100 / 1,000 = 21.1

we now calculate fixed cost:

Total cost = variable x Q + fixed cost

When Q = 6,000 total cost: 294700

294,700 = 21.1 (6,000) + Fixed Cost

Fixed Cost = 147,000

6 0

3 years ago

For much of the 1990s, the U.S. economy was experiencing long-run economic growth, low unemployment, and a stable inflation rate

uysha [10]

Answer: . an increase in aggregate demand and short-run aggregate supply

Explanation:

From the question, we are informed that during the 1990s, the economy of the United States was experiencing long-run economic growth, low unemployment, and a stable inflation rate.

The reason for this is due to an increase in aggregate demand and short-run aggregate supply. This two factors will lead to the long run economic growth which the United States experienced.

6 0

3 years ago

Asymmetric Frames Corp. had a return on equity of 15%. The corporation's earnings per share was $6.00, its dividend payout ra

svet-max [94.6K]

Answer:

D. 9.0%

Explanation:

Provided return on equity = 15% = K $_e$

Earnings per share = $6.00

Dividend = 40% = $6 $\times$ 0.4 = $2.40

Internal Growth Rate = Cost of equity $\times$ (1 - Dividend payout ratio)

Putting values in above we have

Internal growth rate = 15% $\times$ (1 - 40%)

= 15% $\times$ 60%

= 9%

Therefore, correct option is

D. 9.0%

7 0

3 years ago

<11{6[1(07)71]}> The higher the price of an antique, the greater people’s expectation that the object is rare. That, in tu

ollegr [7]

Answer:

a. should be discouraged because it lessens a quality that makes that antique desirable

Explanation:

In pricing theory, the price for a good or service should increase as its scarcity increases. Now selling the antique at a bargain price will reduce the price of it and thereby making it less scarce and rare.

8 0

3 years ago

Please help me :((

vlada-n [284]

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4 years ago