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3 years ago

Explain why an unlimited printing of money would cause economic problems.

Business

1 answer:

Natali [406]3 years ago

6 0

Answer:

Unlimited printing of money will cause the problem of inflation.

Explanation:

Inflation is a general increase in the price of goods and services.

It can be caused by the following:

Demand-pull inflation - This type of inflation is caused by an excess demand for goods and services by consumers without commensurate supply from suppliers.

Cost-push inflation - This type of inflation is caused by an increase in the price of goods and services.

Lastly, out of others, I will like to discuss inflation caused by unlimited printing money.

I sometimes wonder why the country cannot just prompt money so that we can all be smiling and spending cash together. The fact is that this will reduce the purchasing power of money because it is in excess and ultimately leads to inflation.

When there is unlimited printing of money in a country, the cash in the circulation will be in excess, hence more money will be needed to buy few product. That is an indication of inflation.

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Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $5

arlik [135]

Answer:

The financial advantage of processing further = $17,800

Explanation:

1. Sale value if processed further = 8,300 x 13 = $107,900

Sale value if processed further = 8,300 x 10 = $83,000

Incremental revenue = Sale value if processed further - Sale value if processed further = $107,900 - $83,000

Incremental revenue = $24,900

Cost of further processing = $7,100

Incremental profit (loss) = Incremental revenue - Cost of further processing

Incremental profit (loss) = $24,900 - $7,100 = $17,800

Therefore, the financial advantage of processing further = $17,800

3 0

4 years ago

During 2020, Bayside Inc. has 9% cumulative non-participating preferred stocks with a total par value of $300,000 and common sto

Lapatulllka [165]

Answer:

Date - December 14, 2020

Debit : Dividend $16,000

Credit : Shareholders for dividends $16,000

Date - January 16, 2021

Debit : Shareholders for dividends $16,000

Credit : Cash $16,000

Date - December 12, 2021

Debit : Dividend $62,000

Credit : Shareholders for dividends $62,000

January 15, 2022

Debit : Shareholders for dividends $62,000

Credit : Cash $62,000

Explanation:

Dividends are initially declared before they are paid to the respective shareholders. So it is important to first record the journal at the <em>declaration date</em> of the dividend, then the <em>payment date</em> of the dividend as shown above.

7 0

3 years ago

Abigail is a manager at her company. The company just launched an initiative to improve its corporate citizenship practices. Abi

choli [55]

Answer:

The correct answer is (C)

Explanation:

The company has launched an initiative to improve cooperate citizenship and Abigail as a manager is responsible for various operations such as shareholders interest, transparency and integrity of customers. The job of a manager is tough and it requires tremendous amour of effort. Likewise, a manager is not responsible for the vigilance of the board of directors because they are on their own and she has no authority over them.

3 0

3 years ago

Assume the U.S. one-year interest rate is 8 percent, and the British one-year interest rate is 6 percent. The one-year forward r

NNADVOKAT [17]

Answer:

d. about 11.4 percent

Explanation:

% change in pound = ($2.05 - $1.95)/$1.95

= 5.1%

Effective financing rate = (1 + 6%)(1 + 5.1%) - 1

= 11.4%

Therefore, The effective financing rate for a U.S. firm that takes out a one-year, uncovered British loan is about 11.4 percent.

8 0

3 years ago

EAPs are designed to affirm all of the following except

Anton [14]

Answer:

c. monitored employees are better employees

Explanation:

EAP stands for employee assistance program. It basically creates a help for employees which are facing any kind of personal or professional problems in their life.

It is a self initiated program to help the employees, by providing guidance, solving grievances or by any other means.

It nowhere assures that the employees shall be continuously monitored, while they perform and that the employees shall be set free to work in the manner they desire, as long as the company is achieving the targets.

6 0

3 years ago