All categories

4 years ago

During hyperinflations,

Business

1 answer:

ivann1987 [24]4 years ago

5 0

Answer:

A. money no longer functions as a good store of value and people may resort to barter transactions on a much larger scale.

Explanation:

Hyper Inflation can be defined as inflation i.e price rise occuring at highly accelerating pace.

Such exponentially rising prices reduce the value (purchasing power) of money.

So - people don't use it as a 'store of value' (saving for future purposes), since its future value is anticipated to be very lower. It is also used less as a 'medium of exchange' (transaction purposes), because of its less purchasing power.

You might be interested in

The environmental protection agency of a county would like to preserve a piece of land as a wilderness area. The current owner h

charle [14.2K]

Answer: The answer is given below

Explanation:

Here , we are going to apply the present value of annuty formula.

a. Social Opportunity cost = $1.1 Million

The Yearly cash flows = $110,000

Time (n) = 20 years

The Discount rate (R) = 4%

Net benefits= Present value of cash inflows - the intial socail opportnity cost

Net benefits= Yearly cash flow × (1 - 1/(1+R)^n) / R - 1100000

Net benefits = 110000 × (1 - 1/1.04^20)/0.04 - (1100000)

= $394936

b. We will use the formula for present value of an annuity with the growth rate in benefits as 2 percent.

Firstly, dg= (0.04 - 0.02)/ (1+0.02)

= 0.01961

PV(benefits) = [($110,000)÷ (1+0.02)][1-(1+dg)-20]/dg]

= $1,770,045

NPV = $1,770,045 - $1,100,000= $670,045

7 0

3 years ago

A principle under which the intent to form a contract will be judged by outward, objective facts as interpreted by a reasonable

andriy [413]

Answer:

Objective Theory

Explanation:

The Objective theory states that the intent to form a contract will be judged by outward objective facts such as the words and actions of the party instead of the secret, subjective intentions. This theory replaced the Subjective theory in the late nineteenth century. The former theory was of the opinion that the meeting of minds, which translates to the unexpressed intentions of the party would form a basis for interpreting the intent to form a contract.

The objective theory is important as it advocates freedom to a fair hearing, freedom of contract, and personal independence or sovereignty.

5 0

4 years ago

Miriam's employer offers paid vacations, health insurance, and life insurance, as well as a 401(k). Currently, Miriam is partici

Lelechka [254]

Answer: A cafeteria plan

8 0

4 years ago

Apex corporation surveys its consumers to determine how they view the similarities and dissimilarities among relevant product at

Citrus2011 [14]

The survey done by Apex Corporation on its consumers to find out how they view the similarities and dissimilarities among relevant product attributes for a set of competing brands is an example of PRODUCT POSITIONING RESEARCH. The main aim of a Product Positioning Research is to understand the position of a product or a brand in comparison to a competing product or brand.

6 0

4 years ago

Which of the following systems would work best for a very standardized product that has a fairly high and predictable demand? a.

Margaret [11]

Answer:

The answer is b. make-to-stock system

Explanation:

Make-to-stock system is a build-ahead production approach in which production plans may be based upon sales forecasts and/or historical demand. It is a traditional production strategy that is used by businesses to match the inventory with anticipated consumer demand.

5 0

3 years ago

During​ hyperinflations,

During hyperinflations,