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3 years ago

A period of very low inflation would most likely lead to

2 answers:

8 0

Inflation is an increase in price and decrease of purchasing. If inflation is low, there will be an increase in aggregate demand.

Aggregate demand is the total of all goods and services produced during a period of time. If the prices rise, consumers tend to spend less money because the prices could keep rising and they are preparing for the future.

Dafna1 [17]3 years ago

6 0

A period of very low inflation would most likely lead to an increase in the aggregate demand in the economy.

Further explanation:

Implication of low inflation rate: A low inflation rate implies that the purchasing power of a specific amount of money rises. A very low inflation period will enable consumers to have a large basket of goods and services in exchange for a specific amount of money.

Effect of low inflation on the economy: A period of low inflation rate will turn into an increase in the aggregate demand in the economy. Since a low inflation rate in the economy provides benefits to the consumers in the form of increasing their purchasing power. Thus, the aggregate demand in the economy rises. People will demand number of goods and services as a result in order to take advantage of increased purchasing power.

Therefore, the measure of aggregate demand rises in the economy as a result of a period of low inflation.

Learn more:

1. Learn more about inflation and economy

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2. Learn more about inflation

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3. Learn more about the effect of inflation

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Answer details:

Grade: Senior School

Subject: Economics

Chapter: Aggregate Demand and Aggregate Supply

Keywords: a period, of low inflation, would most, likely lead to, low inflation rate, the purchasing power of a specific amount of money rises, consumers can purchase, a large basket of goods and services, the advantage of increased purchasing power, effect of low inflationary period.

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Answer:

True

Explanation:

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3 years ago

Suppose you invest semiannually for 25 years in an annuity that pays 5% interest, compounded semiannually. At the end of the 25

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Answer:

$354,500

Explanation:

First find the amount invested ie the Present Value as follows :

n = 25 × 2 = 50

i = 5%

P/yr = 2

Pmt = $0

Fv = $500,000

Pv = ?

Using a Financial Calculator to enter the amounts as above, the Present Value is $145,471

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= $354,529

Thus interest is $354,500 (nearest hundred dollars).

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4 years ago

What is the opportunity cost of an investment?

anzhelika [568]

Answer:

B. The value of the next most valuable opportunity.

Explanation:

The opportunity cost of an investment is the value of the next most valuable opportunity.

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4 years ago

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If April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17th (assuming it is not a h

goldfiish [28.3K]

If April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17th (assuming it is not a holiday): TRUE

<h3>What are tax returns?</h3>

A tax return is a form or form that is filed with a tax authority and discloses income, expenses, and other relevant tax information.
Tax returns enable taxpayers to assess their tax liability, plan their tax payments, and receive refunds for overpayments.
In most nations, an individual or corporation having a reportable income, such as wages, interest, dividends, capital gains, or other profits, must file an annual tax return.
For example, if April 15th comes on a Saturday, the deadline for individual tax returns is April 17th (assuming it is not a holiday).

Therefore, the statement "if April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17th (assuming it is not a holiday)" is TRUE.

Know more about tax returns here:

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Complete question:

If April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17th (assuming it is not a holiday). TRUE or FALSE

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2 years ago

Consider the following information about an asset that is being review for impairment: Book value $ 700,000 Estimate future cash

erastovalidia [21]

Answer:

The amount of the impairment loss for this asset is $110,000

Explanation:

A assets is impaired when the fair market value of that assets lowers than the book value of the asset.

To calculate the impairment of an assets following formula is used

Impairent = Book value of Asset - fair market value of the asset

Placing values in the formula

Impairent = $700,000 - $590,000

Impairent = $110,000

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3 years ago