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3 years ago

Which of the following statements is true of inflation? Group of answer choices

Business

1 answer:

mezya [45]3 years ago

8 0

Answer:

c. It refers to an increase in the average level of prices.

Explanation:

Inflation refers to a constant increase in the average prices of goods and services in the economy over time. Inflation means consumers will pay more for a similar basket of goods and services than they did in a previous period. Economists use Inflation as a measure of the rate at which the general prices are rising.

A high rate of Inflation without a corresponding rise in incomes erodes the purchasing power of households and firms. The consumer price index CPI is the common index used to measure the inflation rate. Should the inflation rate increase at a very high rate, governments, through the central bank, applies monetary policies to regulate it.

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Expected return is defined as _____. A. the summed value of each possible rate of return weighted by its probability B. the summ

Sholpan [36]

Answer: A. the summed value of each possible rate of return weighted by its probability

Explanation:

The Expected Return of a project is indeed the summed value of each possible rate of return weighted by its probability.

When going into a project, a financial analyst has to account for the possible outcomes that could happen such as interest rates rising or falling.

They then take the various likelihoods and assign rates of returns to them that are either known or anticipated. They will then give each likelihood a probability of it occuring and then give a Weighted Average of these probabilities along with the rates of returns for those likelihoods.

The summed figured that they get is what is known as the Expected return and it includes the various likelihoods that could happen to the project.

4 0

4 years ago

Assume that when the price of good X is $5.00, the quantity demanded is 20 units. When the price is decreased to $3.00, the quan

ale4655 [162]

D. inelastic is the answet

7 0

4 years ago

Read 2 more answers

Strawberry Fields purchased a tractor at a cost of $39,000 and sold it two years later for $25,300. Strawberry Fields recorded d

Alexus [3.1K]

Answer:

Effect on income= $6,100 gain

Explanation:

Giving the following information:

Strawberry Fields purchased a tractor at a cost of $39,000 and sold it two years later for $25,300. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $7,000 residual value.

First, we need to calculate the accumulated depreciation:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (39,000 - 7,000)/5= 6,400

Accumulated= 6,400*2= 12,800

Now, we can determine the loss or profit:

Effect on income= selling price - book value

Effect on income= 25,300 - (32,000 - 12,800)= 6,100 gain

3 0

3 years ago

Read 2 more answers

Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run fluctuations in rea

hoa [83]

Answer:

1.) Business cycle/ True

2.) True

3.) The unemployment rate declined

Total real income increase

Explanation:

Business cycle can be explained as the rise and fall in production output of goods and services in an economy. Business cycle are generally measured using the rise and fall in the gross domestic product(GDP), either nominal or adjusted for inflation. Business cycle is closely related to the economic cycle and trade cycle.

Every nation's economy fluctuates between periods of expansion and contraction. These changes are caused by levels of employment, productivity, and the total demand for and supply of the nation's goods and services. In the short-run, these changes lead to periods of expansion and recession. But in the long-run, economic growth can occur, allowing a nation to increase its potential level of output over time.

In 1950, during the experience in increase in real GDP, U.S had about 8.7% increase in growth, a declined rate of unemployment to about 4.3% with the inflation rate of 5.9% , this era was considered to be expansion and korean war.

6 0

3 years ago

A department adds all materials at the beginning of the process and incurs conversion costs uniformly throughout the process. Fo

zubka84 [21]

Answer:

The unit costs for materials is $1.62 per unit

The unit costs of conversion costs is $2.13 per unit

Explanation:

In determining the the unit production costs for materials and conversion costs, it is very important to calculate equivalent number of units applicable to materials as well as the one applicable to conversion costs

Equivalent units for materials

Completed units 40000 @100% complete 40000

Ending inventory [email protected] 100% complete 20000

60000

Equivalent units for conversion costs

Completed units [email protected]% 40000

Ending inventory 20000 @ 30% complete 6000

46000

unit production costs of materials=$96960/60000=$1.62 per unit

unit production costs of conversion costs=$97860/46000=$2.13 per unit

8 0

4 years ago