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Cerrena [4.2K]
3 years ago
6

If there is an increase in the money supply that causes money to lose its purchasing power and leads to inflation, what happens

to prices?
A. They Fluctuate.
B. They Rise.
C. They Fall
D. They remain unchanged.
Business
2 answers:
LekaFEV [45]3 years ago
8 0

Answer:

they rise just like bruce wyane in the the dark knight rises

Explanation:

ipn [44]3 years ago
3 0
B.

Inflation means that prices rise, so obviously it will be B.
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Answer:

You will not have enough.

Explanation:

The rate of the investment is compounded, so the value at year 1, will be the value at year 0, increased in a 4%. Then, the value at year 2 will be the value at year 1, increased in other 4%, that's equal to the value at year 0 increased twice at 4%.

So, the formula to calculating the value at year 15 is 75,000*(1.04)^15 = 135,070.63. THen, it will not be enough. You have to invest at least 214,000/1.04^15 = 118,826.20 at year 0, at a rate of 4%.

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The market skimming pricing on the other hand is a price setting method where a high entry price is set for a new product and then subsequently reduced with increase in market competition.

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???

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