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3 years ago

Negative inflationary surprises lead to a(n):____________.

Business

1 answer:

Vlada [557]3 years ago

3 0

Answer: increase in real interest rate

Explanation:

Negative inflationary surprises lead to an increase in the real interest rate. The real interest rate is simply defined as the rate of interest that a saver, investor, or a lender will receive after inflation ahs been allowed.

It should be noted that the real interest rate is the nominal interest rate minus inflation. Therefore, a negative inflationary surprises lead to a rise in the real interest rate.

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For each of the following accounts, indicate the effect of a debit or credit on the account and the normal balance. Debit Effect

salantis [7]

Answer:

Debit Credit

A Bonds payable Decrease Increase

b. Unearned Service Revenue Decrease Increase

c. Depreciation Expense Increase Decrease

d. Common Stock Decrease Increase

e. Buildings. Increase Decrease

f. Rent Revenue. Decrease Increase

Explanation:

Debit Credit

A Bonds payable Decrease Increase

Bonds payable are a form of long term debt usually issued by corporations, hospitals, and governments.

b. Unearned Service Revenue Decrease Increase

Unearned Service Revenue is a liability account that is used to record advanced collections from clients. In other words, it pertains to revenue already collected but the service has not yet been rendered

c. Depreciation Expense Increase Decrease

Depreciation expense is the amount of depreciation that is reported on the income statement.

d. Common Stock Decrease Increase

Common stock is a security that represents ownership in a corporation.

e. Buildings. Increase Decrease

A building, or edifice, is a structure with a roof and walls standing more or less permanently in one place, such as a house or factory

f. Rent Revenue. Decrease Increase

Rent Revenue is the title of an income statement account which (under the accrual basis of accounting) indicates the amount of rent that has been earned during the period of time indicated in the heading of the income statement.

7 0

3 years ago

Manuel has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Poornima

Verdich [7]

Answer:

3. Correctly ignored a sunk cost

Explanation:

Sunk costs refer to those costs which have been incurred in the past and which can no longer be recovered. For example, past expenditure on research and development with no current or future benefits represent sunk costs which can no longer be recovered.

Sunk costs are irrelevant for decision making process as they do not relate to current projects and yield no economic benefit.

In the given case, Manuel had already purchased a $10 movie ticket, which can neither be transferred nor eligible for a refund. Later when he does not exercise the option of going for the movie and opts for a concert instead, the amount of 10$ spent on the movie represents a sunk cost which is non recoverable.

8 0

3 years ago

The gdp deflator is used to calculate the inflation rate. True or False

Aleksandr [31]

Answer:

True

Explanation:

The nominal GDP is divided by the real GDP to calculate GDP deflator which is used to calculate the CPI and Inflation rate. So it is true that the GDP delfator is used to calculate inflation rate.

6 0

3 years ago

Dave is a handsome and famous celebrity. he has been dating gabriela, a beautiful and popular actress, for the past two months,

Leto [7]

According to the investment model there should be a degree of satisfaction in the relationship to have stability. But Dave doesn't have that commitment which means he is not satisfied with his relationship. This led him to be attracted with other women he worked with. He felt that these women showed interest to him and he thought of this can be the opportunity to find someone else. This is his alternative to find satisfaction that he is looking for.

4 0

4 years ago

Technology can either shift the labor demand to the right or to the left, depending on its effect on the marginal product of lab

zavuch27 [327]

Answer:

If we find out that technology has shifted the labor demand to the left, this is a disadvantage to labor.

Explanation:

To begin with, It's important to properly understand the concept of Marginal Product of Labour.

In simple terms, marginal product of labor is basically the change in unit output occasioned by a unit change in labor. There are a number of factors that may cause a marginal change in labor. Suffix to say, marginal change can either be to the right or to the left.

To narrow it down, we have technology to consider as one of the factors that ensue marginal change. Even more, this change can either be to the right or left. That is, an increase in technology might result to an increase in unit labour - this is to the right. And this is beneficial or advantageous to labor. In same vein, a increase in technology might result to a decrease in unit labour - this is to the left. And this is disadvantageous to labor.

It's on established record that introduction of new technologies, procedures and processes often have a direct effect on an individual employee. This altogether affects the marginal product in labour.

Hence, when technology brings changes to the left, this is a disadvantage to labour, as there is possibly a downsizing or reduction in labor strengths occasioned by the new technologies.

4 0

4 years ago

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