Benefits of small amounts of inflation include more expansionary monetary policy, the placebo effect, and the facilitation of relative price changes.
<h3>What is meant by inflation?</h3>
Inflation is the term used to describe the rate of price rise for goods and services.
It is sometimes used to categorize inflation according to cost-push, demand-pull, and built-in factors.
The two most popular inflation measures are the Consumer Price Index and the Wholesale Price Index.
Inflation can be viewed favorably or badly depending on the perspective and rate of change.
Inflation may be advantageous for those who own tangible assets since it will raise the value of their holdings, such as real estate or goods that are kept in storage.
Inflation's primary causes include:
- Consumer-driven inflation
- Price-driven inflation
- more money available
- Devaluation
- increasing pay
- Regulations and policies
Benefits of Inflation: In order to meet increasing demand, production must increase. Additionally, debtors benefit from inflation because they can return their loans with funds that are less valuable than the funds they borrowed. This promotes borrowing and lending, which boosts expenditure on all levels once more.
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Answer:
The account is debited on December 31, 2020: Interest expense by the entry:
Debit Interest expense $24,000
Credit Interest Payable $24,000
Explanation:
Slack Inc. borrowed $400,000 on July 1, 2020. The note requires interest at 12%.
The amount of interest Slack Inc. pays per year = $400,000 x 12% = $48,000
On December 31, 2020, the company has borrowed $400,000 for 6 months. Following the Accrual basis, Slack Inc. would report on December 31, 2020 the interest expense for 6 months:
$48,000/12 x 6 = $24,000
The adjustment entry:
Debit Interest expense $24,000
Credit Interest Payable $24,000
Answer:
Explanation:
Cost of advertising the product - Selling & Administrative Cost
Fabric used to make the umbrellas -Direct Materials Cost
Maintenance of cutting machines used to cut the umbrella fabric so it will fit the umbrella frame -Manufacturing overhead Cost
Wages of workers who assemble the product - Direct labour Cost
President's salary - Selling & Administrative Cost
The salary of the supervisor of the people who assemble the product - Selling & Administrative Cost
Wages of the product tester who stands in a shower to make sure the umbrellas do not leak - Direct labour Cost
Cost of market research survey - Selling & Administrative Cost
Salary of the company's sales managers - Selling & Administrative Cost
Depreciation of administrative office building - Selling & Administrative Cost
Answer:
A. incentives
Explanation:
An incentive is a motivator to do something. Traditionally incentive is extrinsic, that is there is a reward given when an achievement is made. This is the rational for bonuses on the job. Where an employee is compensated for achieving a milestone at work.
Ultrinsic.com is using incentive of a cash reward for those that get As as a motivator for the students. Students pay an entry fee of $70 and if one student gets an A he will get the whole pool of funds. If more than one person gets an A they will share the money in the pool.
More students will be motivated to get As.
It will affect the investment and the interest rate when people consume more, investments will increase as they buy more products. An increase in consumer confidence would result to an increase in consumption of goods and commodities. The interest rate will higher as the demand for capital also rises and consumer spending rises due to the demand also arises.
