1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mademuasel [1]
3 years ago
5

John is creating a presentation on the consumer price index, for his business class. He wants students to understand that food a

nd energy prices have risen more rapidly than other market items that the government traditionally measures for inclusion in the CPI calculation. He will show students that the core inflation figure will be _______ than the CPI. He will then inform the class that if consumers begin substituting, for example: If the prices at full service hair styling salons get too exorbitant, consumers may substitute by going to cheaper hair cutting salons. This will make the ___________ calculation lower.
A. higher; C-CPI
B. lower; C-CPI
C. lower, PPI
D. higher, PPI
Business
1 answer:
RSB [31]3 years ago
5 0

Answer:

A. higher; C-CP

Explanation:

As the exercise says, John wants students to see that food and energy prices have risen more rapidly than other market items used in the Consumer Price Index (CPI) calculation. He wants students to see the increase in the core inflation, because food and energy are the main expenses of people. But for CPI calculation there are other items to consider. So the core inflation will be higher than the CPI (inflation, considering all items), as food and energy prices increased more than the other products considered in the CPI.

The second part of the excersise says that there might be substitution, that is people consuming less expensive goods or services, which will lead to a change in the measuring of the C-CPI as the prices to consider will be lower, so C-CPI will be less

You might be interested in
In Agile projects early risk planning, assessment and response planning is done at a high level, and more detailed and timely ri
kkurt [141]

Answer:

TRUE

Explanation:

Quick program management relates to the factors which determine the success or failures of a task. Risk assessment doesn't need to provide structured risk reports and reviews on agility programs. Risk management is integrated into scrum jobs, tools, and activities.

Agile risk assessment is achieved more by then describing activities. Several Agile methods search throughout the process to define and minimize the risks.

4 0
3 years ago
Scenario 1: Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximu
ELEN [110]

Answer:

<em>The question is incomplete, complete question is as follows:</em>

Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is a decrease in the maximum contribution, from $5,000 to $3,000 per year.

Shift the appropriate curve on the graph to reflect this change.

This change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to and the level of investment spending to.

Explanation:

<em>To decrease.</em>

Saving is the basis of the loanable finance supply.

<em>Decreasing the saving rates which families may shelter from income tax would deter saving on each interest rate, contributing to a change in the supply of loanable funds to the left. </em>

The initial interest rate is due to a shortage of loanable funds. The lenders will also be able to increase the interest rate which they charge for loans with more inclined borrowers than lenders.

Whilst the interest rates increase, the quantity required for loanable funds is declining. The equilibrium interest rate is increasing, and the equilibrium amount of borrowed and invested loanable funds is decreasing.

5 0
3 years ago
Consider a hypothetical economy where there are no taxes and no international trade. households spend $0.80 of each additional d
KengaRu [80]
The formula for the multiplier is 1 / (1 - MPC), whereby MPC represents the marginal propensity to consume. Applying the formula to our case, we get: M (multiplier) = 1/(1-0.8) = 1/0.2 = 5. The multiplier in this economy is therefore 5.
7 0
3 years ago
Luis, marlon, and victoria are counting money. they each have the same amount in dollar bills, quarters, dimes, nickels, and pen
Hoochie [10]
The characteristics is its divisibility: money can be divided into smaller parts and the sum of those parts has the same value as the original money. Here we see that different people have the same amount of money in different forms.

Other characteristics of money are its durability, transportability and the resistance to being faked. 
4 0
3 years ago
Read 2 more answers
Winston Corporation owns 25% of the voting stock of Tole Corporation and uses the equity method in recording the investment. Tol
Usimov [2.4K]

Answer:

c. debit to the investment account for $12,500.

Explanation:

The computation is shown below:

= Net loss reported × owning percentage

= $50,000 × 25%

= $12,500

Simply we multiplied the reported net loss and its owning percentage so that the accurate loss amount can come

Since it is a net loss, so it would be debited to the investment account for $12,500

Hence, all other options are wrong except option c.

5 0
3 years ago
Other questions:
  • Which statement describes a benefit of international trade
    8·2 answers
  • Global Blenders sells goods and services that other companies offer but does not provide any organization with the input resourc
    11·2 answers
  • The cost of a longminus term debt generally​ ________ that of a shortminus term debt. A. is less than B. is equal to C. is less
    11·1 answer
  • The cost of capital: a. is the price of borrowing money, which is the rate of return that borrowers must pay investors. b. tends
    8·1 answer
  • Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.90 dividend every year, in perpetuity. If thi
    8·1 answer
  • What happened to the real estate market in the years between 2000 and 2008? What was the result of changes in the real estate ma
    10·1 answer
  • Edmonco Company produced and sold 45,000 units of a single product last year, with the following results: Sales Revenue $ 1,350,
    12·1 answer
  • The makings of a good currency Instead of using money, people could simply barter one good for another. Which of the following i
    14·1 answer
  • Which of these boxes of cereal has the LOWEST unit price?
    8·1 answer
  • Some __________ ask members/customers to work at the organization for a number of hours a month as part of their duties.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!