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nydimaria [60]
3 years ago
15

Determine if the people in the example have benefited (i.e., are winners) or have been harmed (i.e., are losers) by unexpected i

nflation.1. Winners2. Losers
Business
1 answer:
nevsk [136]3 years ago
7 0

Answer:

Winners

  • 3rd National, a bank that loaned many people money for home purchases.

Losers

  • Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.
  • Herb, who keeps his savings in an old coffee can.
  • Joy, who has borrowed $40,000 to pay her college education.
  • The US federal government which had almost $15 trillion in debt in 2011.

Explanation:

When unexpected inflation occurs, the usual plan to by Monetary Institutions of a country is raising the interest rates.

By doing that, they want to stop it or slowly decelerate it.

So that it becomes more expensive to take a loan, the idea is to reduce consumption.

In Economics, it's a bad scenario after all. Few winners. Many losers.

So, let's examine them

Winners

  • 3rd National, a bank that loaned many people money for home purchases.

At first, The 3rd National is going to be winning since the value of the debt will rise, depending on the type of contract and an increase in the interest rate will demand corrections on the monthly payments. But on the other hand, the number of default clients and overdue installments will raise for sure.

Losers

  • Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.

Inflation reduces the real buying value of her checks. And her pension can't grow otherwise this will feed the inflation too.

  • Herb, who keeps his savings in an old coffee can.

Since his money is not invested then He's not having any earning that might give him some compensation. So his money is even more devalued.

  • Joy, who has borrowed $40,000 to pay her college education.

Depending on the contract Joy might be sleepless. Either her monthly payments will become more expensive or She may experience difficulties because of the weekly growing prices.

  • The US federal government had almost $15 trillion in debt in 2011.

Certainly, the president and his secretary will have to address the fact that due to inflation and the chosen medicine make the nation's debt up to the sky. They must renegotiate the payment deadlines.

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Precision Paper Products produces both paper towels and paper napkins. The production process begins with the receipt and pulpin
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Answer:

d. The maintenance costs associated with the napkin folding machine.

Explanation:

The cost that required one or more processors to produced a final product is known as joint cost

Here in the given question, the maintenance cost is not considered to be a joint cost as this cost are associated with the paper napkins

Also, the pulping, screening, rolling, etc are considered to be joint cost

Hence, the correct option is d.

4 0
3 years ago
Belinda keeps a record of her expenses for the week as shown:
Mademuasel [1]

Answer:

d. $38.00

Explanation:

The computation of the overall Belinda expense for the week is shown  below:

= Bus fare expense + lunch out expense + hair cut expense + movie rental expense

= $8.70 + $7.35 + $16 + $5.95

= $38

We have added all the types of expenses that are provided in the case i.e. bus fare, lunch out, hair cut and movie rental expenses.

6 0
3 years ago
If the price of good X rises and the demand for good X is inelastic, then the percentage fall in quantity demanded is __________
Dominik [7]

If the price of good X rises and the demand for good X is inelastic, then the percentage fall in quantity demanded is greater than the percentage change in price, and total revenue falls.

Demand elasticity, often known as the elasticity of demand, gauges how consumers react to changes in price or income. Due to the fact that the price of a good or service is the most typical economic component used to measure it, it is frequently referred to as price elasticity of demand.

The whole amount of money a seller can make by providing goods or services to customers is known as total revenue. The formula for this is P\times Q, or the purchase price times the quantity of the products sold.

Learn more about elasticity of demand here brainly.com/question/24384825

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6 0
2 years ago
Evaluating your payoffs as gains or losses relative to an arbitrary baseline distorts your decisions and is a problem associated
7nadin3 [17]

The study of an agent's or individual's decisions is known as decision theory. The official decision-making process concludes with evaluation. Evaluating the consequences may assist the decision-maker in learning lessons that will help her make better decisions in the future.

  • Loss aversion is the correct answer because the general notion of the "loss-aversion" theory is that if an individual is provided with two equal alternatives, one of which is presented in terms of prospective profits and the other in terms of potential losses, the former option will be chosen.

  • Loss aversion is a cognitive bias or psychological phenomenon that explains why the agony of losing is twice as powerful psychologically as the pleasure of winning.

Therefore, representativeness, cognitive bias, and overconfidence are not factors relative to an arbitrary decision distortion. So, Loss aversion is the correct response to the question.

For more information regarding arbitrary baseline, refer to the link:

brainly.com/question/11224360

5 0
2 years ago
Read 2 more answers
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