Answer: Raises the CPI and reduces real income.
Explanation:
Inflation is a sustained rise in the general price level of the goods and services in an economy during a particular period. It is usually expressed as a percentage. Inflation leads to a reduction in the purchasing power of a country's currency.
Real income reduces because a rise in the price level with nominal income constant reduces the purchasing power of money. People holding real assets are better off than people who are holding cash.
Answer:
1. A company had net sales of $760,200 and cost of goods sold of $547,400. Its net income was $19,340. The company's gross margin ratio equals:______
c. 28.0%.
2. The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.
A. True
3. Paid-in capital is the total amount of cash and other assets the corporation receives from its stockholders in exchange for its stock.
A. True
Explanation:
Gross profit margin is calculated by dividing the gross profit by the sales and multiplying by 100. In this case, the gross profit is $212,800 ($760,200 - $547,400). The amount, $212,800, then divided by $760,200 and multiplied by 100 to obtain approximately 28%.
The dollar is the monetary unit for all business transactions conducted in the United States. The accounting assumption behind the monetary unit means that all transactions conducted in the United STates are reported in dollars.
Answer:
This statement is True.
Explanation:
The Financial Accounting Standards Board (FASB) is the successor of the <u><em>Accounting Principles Board</em></u> and was founded in 1973. Currently based in Norwalk - Conn, the FASB is responsible of establishing the Generally Accepted Accounting Principles (GAAP), and, overall, is in charge of setting accounting and financial reporting standards for public and private companies, as well as non-profit organizations in the United States. The FASB is also currently working to establish worldwide acceptable standards together with the International Accounting Standards Board (IASB).
Answer:
B) French wines will become more expensive in the United States.
Explanation:
When rate of dollar falls to that of euro, the same number of dollars will purchase fewer French goods, so French goods become more expensive to American consumers. If one travels to Europe (including France), one will exchange one dollar for less than one euro
Answer:
The answer is B. increase its spending.
Explanation:
Fiscal policy is a tool used by the government of every nation to control its economy. It uses its spending and revenue (tax) to control it.
When the economy is operating at an output level below potential real GDP, it means there are low activities in the economy i.e reduced households' consumption, reduced business investments and reduced government spending.
Government can stimulate the economy (which will increase real GDP) by increasing its spending in all areas.
Increasing taxes will reduce GDP because households' consumption will reduce due to lower disposable income and business investments too will reduce.
Option A and D are wrong because money supply is a monetary policy.
