All categories

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

You might be interested in

Purchasing a diamond represents ________ because consumeres buy diamonds infrequently and have no estabilished criteria for eval

Vesnalui [34]

Answer: Purchasing a diamond represents Extensive problem solving because consumeres buy diamonds infrequently and have no estabilished criteria for evaluating them

Explanation:

Extensive problem solving is the process of a customer trying to get all the information they need in order to be able to buy a product . This is likely to occur when the customer is purchasing a product that they have not bought before.

7 0

3 years ago

What is the permeter of a rectangle

AlekseyPX

The perimeter is the total distance around the outside of a shape. In the case of a rectangle, opposite sides of the rectangle are equal. Here is a formula for finding the perimeter of a rectangle: P=2(l+w) or Perimeter = 2 × length + width

6 0

3 years ago

What is meant by allocative efficiency? Allocative efficiency is when every good or service A. is produced up to the point where

Alborosie

Answer:

Option (E) is correct.

Explanation:

Allocative efficiency is created when the gap between marginal benefit and marginal cost is maximum. The marginal benefit is the benefit that a consumer can get by consuming an additional unit of a commodity and the marginal cost is the cost that a producer incurred by producing an additional unit.

Hence, the allocative efficiency is achieved where the difference between these two terms is maximized.

5 0

3 years ago

Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-st

Katarina [22]

Answer:

MULTI-STEP

Sales Revenue 96,948.00

Sales commissions (8,428.00)

Net Sales 88,520.00

COGS (61,018.00)

Gross Profit 27,502.00

Depreciation (11,336.00)

Delivery Expense (3,138.00)

Salaries expense (5,348.00)

Operating Income 7,680.00 

Rent revenue 17,678.00

Interest expense (2,308.00)

Non-Operating 15,370.00

Earning Before Taxes 23,050.00

Income Tax (9,518.00)

Net Income 13,532.00

Shares 40,550

EPS 0.33

ONE-STEP

Sales Revenue 96,948.00

Sales commissiones (8,428.00)

Net Sales 88,520.00

COGS (61,018.00)

Gross Profit 27,502.00

Rent Revenue 17,678.00

Depreciation (11,336.00)

Delivery Expense (3,138.00)

Salaries expense (5,348.00)

Interest expense (2,308.00)

EBT 23,050.00

Income Tax (9,518.00)

Net Income 13,532.00

Explanation:

The multi-steps calcualte the operating income and the non-operating income (from other activities and interest which aren't directly linked to the main activity of the company) While the one step just calcualte directly through earnings before taxes after solving gross profit.

6 0

3 years ago

Read 2 more answers

The Gotham Corporation regularly produces budget vs. actual data for its managers. The company is particularly sensitive to pers

Rudik [331]

Answer:

Option C Internal Control Information

Explanation:

The reason is that variance analysis is the process through which we emphasize control over costs which is solely management accounting and is not linked to financial reporting so the option B is incorrect. This information is internally generated which means saying that the information is obtained from external sources is totally incorrect. The option a is generally correct because this information is part of internal information. But Option C is more relateable here so the better option is Option C.

6 0

3 years ago