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Anvisha [2.4K]
3 years ago
9

A low inflation rate is preferred because...

Business
1 answer:
mamaluj [8]3 years ago
5 0

Answer:

the correct answer is  low inflation indicates steady growth

Explanation:

inflation can be explained as the increase in the general price level of a country over a specific period of time. this is an indicator of the rise in the price of the goods and services of a country and indirectly can show the standard of living, economic growth and the purchasing power of an economy.

Generally, the inflation is said to be in an healthier range when it is between 1% and 5%, it is regarded as good when it is below 10% and said to be unhealthy when it is over 10%.

when the inflation is low, the price levels rise systematically and gradually. this allows business and investors to predict the economy more accurately and preserves the purchasing power of the currency and money, which is good for both investments, national and international trade.

moreover, when the inflation is lower, the cost of capital financing remains low as well. and the real interest rates are higher too.

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2 FIFO Method gives a higher a higher ending inventory Balance ($3058)  than LIFO Method ($1668). Ending inventory unit cost under FIFO Method is $11 while the ending inventory unit cost under LIFO Method is $6

3.  LIFO Method Provides Higher Cost of goods sold ($18626) than FIFO Method ($17236). LIFO Method includes the entire units of inventory purchased on the 23 June costing $11 per unit while Cost of goods sold under FIFO Method has only 556 units from the units purchase on the 23rd of June costing $11 per unit

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