All categories

2 years ago

During periods when the inflation rate fluctuates widely,

1 answer:

7 0

Answer: During periods when the inflation rate fluctuates widely, "c. uncertainty about changes in relative prices causes a decrease in economic efficiency".

Explanation: Economic process caused by the imbalance between production and demand; it causes a continuous rise in the prices of most of the products and services, and a loss of the value of the money to be able to acquire them or make use of them. The uncertainty in prices caused by inflation also negatively affects consumers, since they must waste time researching the price of the products they consume. So this uncertainty and less information, which produces inflation, negatively affects both investors and consumers, and with this negatively affects the growth possibilities of the economy.

You might be interested in

Describe how you would apply for a mortgage.

ExtremeBDS [4]

You have to complete a " Mortgage Application", the application will usually ask for a credit report, any credit accounts, amount of income, available funds, credit card balances, and a price range. Once a lender has reviewed your application he/she will decide rather to approve or disapprove your application. If your application is approved you will need to make a down payment. A borrower with good/excellent credit is more likely to be approved for a mortgage. Interest rates will determine how much you will pay monthly. Interest rates can also change while the loan application is being reviewed and processed by the lender.

5 0

3 years ago

Suppose you consider buying a bond promising to pay you $25 one year from now and then the same amount every year through the fi

Archy [21]

Answer:

$3,667.44

Explanation:

The amount you would be willing to pay today can be determined by finding the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 4 = $25

Cash flow in year 5 = $25 + $5000

I = 7%

Present value = $3,667.44

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

6 0

3 years ago

Assume MU_c and Mu_d represent the marginal utility that a consumer gets from products C and D, the respective prices of which a

lana [24]

Answer:

<h2>The correct answer in this case is option C. or MU(c)/P(c)>MU(d)/P(d).</h2>

Explanation:

Under consumer equilibrium theory for two commodity model,a rational consumer maximizes his or her utility when the marginal utility(MU) obtained from consuming one good is equal to the same of the other.This is the fundamental essence of the Law of Equimarginal Utility in Economics.Now,in this case,the consumer will purchase more of good C than good D if the Marginal utility obtained from one unit of good C or MU(c) for the money spend on consumption of good C or price of C,P(c) is greater than the marginal utility obtained from consuming 1 more unit of good D or MU(d) for money spend on purchase of good D or price of that particular unit of D or P(d).Therefore,since the marginal satisfaction compared to the amount of money spend for the consumer is higher for good C compared to the other or good D,it will increase the total utility level of the consumer from that particular consumption bundle or pattern.Hence,he or she will spend more on the consumption of good C than good D.

8 0

3 years ago

Blake Company purchased two identical inventory items. The item purchased first cost $17.00, and the item purchased second cost

BaLLatris [955]

Answer:

Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.

Explanation:

Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.

True as under weighted average:

(17 + 18) / 2 = 17.50

the ending inventory will be one unit valued at $17.50

while under FIFO the 17 dollar unit was sold and declare cost

while the second is keep under ending invenotry at $18.00

7 0

3 years ago

Comparative balance sheets for Pina Colada Corp. are presented as follows. Pina Colada Corp. Comparative Balance Sheets December

DerKrebs [107]

Answer and Explanation:

The Preparation of cash flows for 2020 using the indirect method is shown below:-

Cash flow from Operating Activities

Net income $134,100

Add: Adjustments to reconcile net income

Add; Depreciation on property, plant and equipment $25,000 ($66,250 - $41,250)

Less: Increase in Accounts receivable ($8,300) ($84,350 - $76,050)

Add: Decrease in Inventory $7,750 ($180,500 - $188,250)

Less: Decrease in Accounts payable ($12,950) ($33,400 - $46,350)

Net cash provided by Operating Activities $145,600

Cash flow from Investing Activities

Add:Sale of Land $24,850

Less: Purchase of equipment ($49,800) ($249,600 - $199,800)

Net cash used in Investing Activities ($24,950)

Cash flow from Financing Activities

Issue of common stock $48,900

Less: Redemption of bonds ($50,700)

Less: Dividend paid ($68,300)

Net cash used in Financing Activities ($70,100)

Net increase in Cash and Cash Equivalents $50,550

Cash in the beginning of the period $22,400

Ending cash balance for the year $72,950

7 0

3 years ago