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3 years ago

Hyperinflations tend to occur when

Business

1 answer:

sladkih [1.3K]3 years ago

8 0

Answer:

C) Central banks finance large government budget deficits

Explanation:

Hyperinflation is when general price level rise at accelerating high rates. This leads to loss in real value of currency, people tend to substitute it by other stable currency holdings.

An important cause of Hyperinflation is Deficit Financing. This means government generating funds, by bank issuing (printing) new currency. It is done to cover the deficit, the excess of government expenses over its revenues.

Increase in currency money supply, by borrowing from central bank - raises Aggregate Demand & general price level at a very rapid rate, i.e Hyperinflation

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Mark Ward is a farmer who owns land which borders on the right-of-way of the Northern Railroad. On August 10, 2007, due to the a

professor190 [17]

Answer:

A. recognition of a loss and creation of a liability for the value of the land.

Explanation:

This is because, in the financial statement of the Railroad company, it goes to show the financial dealings which the company had within the fiscal year under review. Since, the Northern Railroad Company and Mark Ward has reached an agreement, the best would be the recognition of the loss and create a liability for the value of the land in their financial statement. It will afford the investors to be aware of the assets and liability of the company at the present time.

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3 years ago

BrambleFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cos

Ede4ka [16]

Answer:

$650,752

Explanation:

The computation of the avoidable interest is shown below;

But before that following calculations must be done

Interest payable on short term loan

= $2,240,000 × 10%

= $224,000

Interest payable on long term loan

= $1,600,000 × 11%

= $176,000

Therefore,

Weighted average interest rate is

= ($224,000 + $176,000) ÷ ($2,240,000 + $1,600,000) × 100

= 10.42%

Now

Avoidable interest is

= [$3,200,000 × 12%] + [($5,760,000 - $3,200,000) × 10.42%]

= $650,752

4 0

3 years ago

Indiana Co. began a construction project in 2018 with a contract price of $160 million to be received when the project is comple

qaws [65]

Answer:

Recognized $12.47 million gross profit on the project in 2018.

Explanation:

Total Contract price $160

Total cost incurred during the year 2018 $39

Additional cost $83

Total cost $122

Total profit $38

% cost during the year = (39/122*100) = 31.9672131147541% = 31.97%

Revenue recognized on 2018 = 39*31.97% = $12.4683 = $12.47

6 0

3 years ago

Dewey just won a million-dollar lottery jackpot. one year from now, he is likely to be:

creativ13 [48]

I would say that one year from now he is likely to be destitute of the one million because he will most likely give a lot of it to family and friends and also pay off debts which most likely will leave very little disposable cash for him/herself.

5 0

3 years ago

Which of the following is an example of a quasi-public good?A) cable televisionB) organic applesC) stock of knowledge in the pub

Roman55 [17]

A public good is a product or service that is available to all members within a society. This type of good is given by the government or a private individual organization without hesitation of who is allowed to use it. Roads are an example of a public good because there is no exclusion on who can drive on a public road. A private good is excludable and only certain people receive the benefits from it. A quasi-public good has characteristics of a private and public good. A. Cable television is an example of a quasi-public good. Cable TV is available to everyone but for everyone to have the TV, they have to pay for it.

3 0

3 years ago