Answer:
Which of the following is not a cost created by high inflation?
A. Inflation causes the real wage to fall which means that firms have to pay more for workers.
B. Inflation causes the real interest rate to change which can make it more difficult to borrow and lend money.
Explanation:
High inflation may also lead to higher borrowing costs for businesses and people needing loans and mortgages as financial markets seek to protect themselves against rising prices and increase the cost of borrowing on short and longer-term debt.
When competition is present and property rights protected and enforced, market prices will encourage self-interested individuals to develop skills that are expected to be valuable in the future. A system of well-defined, secure private property rights promotes economic performance and progress.
Answer:
The correct answer is option (d).
Explanation:
According to the scenario, computation of the given data are as follows:
Total purchases = $70,000
Total number of days to pay = 45 days
Total discount = 3%
Discount period = 12 days
So, payment terms can be shown as:
Total discount / Discount period and n / Total number of days to pay
By putting the value, we get
= 3/12 and n/45
Answer:an automatic stabilizer because it falls as income increases, slowing an economic expansion
Explanation:Unemployment Compensation are benefits provided by government to serve as a temporary income when one loses his or her job through no fault of him or her.
The money partly helps one pay expenses while looking for new job
Unemployment compensation is a fiscal policy used as an Automatic stabilizers to stabilise fluctuations in a nation's economic activity.
Similarly, Unemployment compensation payments, falls when the economy is in a phase of expansion since there are few unemployed people filing claims for compensation and rise when the economy is high in recession and high rate of unemployment IE when there are many people filing claims for compensation.