1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
oksian1 [2.3K]
3 years ago
6

g Price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patter

ns. The problem this creates for inflation calculations is called a. deflation. b. inflation. c. unmeasured quality change. d. substitution bias.
Business
1 answer:
Tpy6a [65]3 years ago
6 0

Answer:

d. substitution bias.

Explanation:

Price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patterns. The problem this creates for inflation calculations is called substitution bias.

A problem with the Consumer Price Index (CPI) arises from the singular fact that, when the price level of a product becomes relatively less expensive or lower, consumers tend to buy more quantity of the product and consequently, a lesser quantity of goods that are relatively more expensive.

Hence, their spending pattern changes with respect to the prices but it's not completely adjusted with the Consumer Price Index (CPI), thus, making the inflation rate to differ because of the problem of substitution bias.

You might be interested in
The most useful allocation basis for the departmental costs of an advertising campaign for a storewide sale is likely to be: Mul
azamat

Answer:

Proportion of sales of each department.

Explanation:

Advertising expense directly effects the sales of the business. As the campaign is made store-wide sales and it does not directly traceable to any specific department. It need proper basis for allocation of expenses. The proportion of sales of each department is the most suitable basis from all of the given options because the share of benefit from the campaign is received in the form of sale. A campaign might mostly effects the sales.

3 0
3 years ago
Reports how much the company is worth to the owners at the
SashulF [63]
I really want to say income statement
6 0
3 years ago
In​ 2008, as a financial crisis began to unfold in the United​ States, the FDIC raised the limit on insured losses to bank depos
Dafna1 [17]

Answer:

The correct answer is option D.

Explanation:

In​ 2008, as a financial crisis began to unfold in the United​ States, the FDIC raised the limit on insured losses to bank depositors from​ $100,000 per account to​ $250,000 per account.

During the financial crisis, there was a sense of panic. The regulators were concerned that depositors would expect their banks to crash and would fear that they may lose their money. The regulators expect the depositors to pull money back from their banks. The money supply will get reduced further. This will further reduce the money with banks. This could lead to even healthy banks to fail.

Raising the insurance limit would reassure depositors that their money was safe in banks and prevent a bank panic. This will further help to stabilize the financial system.

4 0
3 years ago
Why is money management important? How would you rate your own money management?
sergey [27]

Answer:

because it has money

Explanation:

3 0
3 years ago
Read 2 more answers
Identify a true statement about the follow-up that salespeople should perform after a sale. Multiple Choice Salespeople should a
Jlenok [28]

After the sale, salespeople should only follow up with the buying center members who are directly involved in the use of the product.

The members of the buying center will be responsible for making decisions regarding variables that allow the monitoring of factors such as:

  • Direct buyback
  • New task
  • Modified buyback
  • Product type

This monitoring will help to understand consumption and satisfaction trends so that the purchase and sales strategy is carried out more effectively and aligned.

Therefore, salespeople should follow up after the sale only with buying center members, who will provide them with guidance to make more sales of certain most consumed products.

Learn more here:

brainly.com/question/12607810

8 0
3 years ago
Other questions:
  • Cost of merchandise sold reported on the income statement was $155,000. The accounts payable balance increased $8,000, and the i
    11·1 answer
  • Adams Corporation owns and operates two manufacturing facilities, one in State X and the other in State Y. Due to a temporary de
    9·1 answer
  • Tony borrows $1300 at an annual interest rate of 6.0%. He receives the loan on the first day of the current month and will make
    13·1 answer
  • The world price of grapefruits is above the price that currently prevails in Cuba in the absence of trade. Assuming that Cuba is
    14·1 answer
  • Karla has graduated from high school this year and has a steady job. She feels ready to move into her own space and has $900 in
    10·1 answer
  • If the owner contributes $19,400 and net income is $15,900, how much did the owner withdraw (owner, withdrawals)
    9·1 answer
  • 1. How much would you pay for a share of stock paying a dividend​(cash payout ​C) of ​$4 to be paid in one​ year, a known sellin
    9·1 answer
  • In a statement of approximately 75 words explain why the economic systems in countries with dictatorships or closed systems of g
    9·1 answer
  • Which of the following is not a characteristic of a Successful Resume?
    15·1 answer
  • The interstate commerce act gave the right to supervise railroad activities to?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!