1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bazaltina [42]
3 years ago
9

What is the Consumer Price Index (CPI) and how is it determined each month? How does the Bureau of Labor Statistics (BLS) calcul

ate the rate of inflation from one year to the next? What effect does inflation have on the purchasing power of a dollar? How does it explain differences between nominal and real interest rates? How does deflation differ from inflation? (Answer in your own words)
Business
1 answer:
Mazyrski [523]3 years ago
8 0

An CPI can be said as an index which  measures the prices of "market basket" of some 300 good and services that is assumed to be fixed and the services are brought by a "typical" consumer.

Explanation:

1)<u>How does the Bureau of Labor Statistics (BLS) calculate the rate of inflation from one year to the next?</u>

The Consumer Price Index is an index  which measures the prices of  market basket of goods and services and it  is used by the Bureau of Labor to calculate the rate of inflation, using the price of the basket from the current year divided by the base year, then multiplied by 100.

<u>2)What effect does inflation have on the purchasing power of a dollar?</u>

Inflation lowers the purchasing power of the dollar and it basically occurs when the market basket of goods is priced positively  with reference to  the rate of inflation.

<u>3) How does it explain differences between nominal and real interest rates</u>

A  real interest rate is an interest rate that takes into account the effects of inflation in order  to reflect the real cost of funds to the borrower and the real yield to an investor. A nominal interest rate refers to the interest rate that is calculated before taking the effects of inflation into account.

<u>4)How does deflation differ from inflation?</u>

Deflation occurs when the rate of inflation is negative.

You might be interested in
Data related to the inventories of Costco Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies E
scoundrel [369]

Answer:

$85

Explanation:

Calculation for what the inventory of surgical supplies would be valued at

Net realizable value = $100 - $15

Net realizable value = $85

Therefore based on the above calculation the inventory of surgical supplies would be valued at $85

8 0
2 years ago
Objectives are Multiple Choice the means by which a marketing goal is to be achieved, usually characterized by a specified targe
omeli [17]

Answer:

a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.

Explanation:

A business objective is defined as measurable achievements a company wants to attain within a given period of time.

It acts as a compass that shows that activities are on track to realise business goals.

The steps to get a favourable result are outlined, resources to be used are usually stated and a time frame given to get results.

Goals on the other hand are general results that a company wants to attain. Objectives are more specific.

5 0
2 years ago
Taxes levied on the sale, manufacture or use of specific items such as liquor, cigarettes, and gasoline are known as
Tasya [4]
Taxes levied on the sale, manufacture or use of specific items such as liquor, cigarettes, and gasoline are known as <u>selective sales taxes</u>, as well as <u>excise taxes.</u>
So, there aren't taxes on a whole bunch of products, but rather on a selected few, which (in the case of alcohol and cigarettes) are considered detrimental to the society and thus people who want to use them have to pay a little bit more in order to have that commodity. 
3 0
3 years ago
Warranties are commonly associated with ____________ purchases.
zhuklara [117]
Warranties are commonly associated with Consumer
5 0
3 years ago
Bill Dukes has $100,000 invested in a 2 stock portfolio; $75,000 is invested in Stock X and the remainder is invested in Stock Y
Marta_Voda [28]

Answer:

A. 1.30

Explanation:

In order to find portfolio beta we will multiply each individual stock's beta with its weight in the portfolio. Stock X has a weight of 75%(75,000/100,000) and a Beta of 1.5. Stock Y has a weight of 25%(25,000/100,000) and a Beta of 0.7.

Portfolio Beta = (1.5*0.75)+(0.70*0.25)=1.3

3 0
2 years ago
Other questions:
  • Michael's, Inc. just paid $2.75 to its shareholders as the annual dividend. Simultaneously, the company announced that future di
    15·1 answer
  • Which of the following statements is CORRECT? a. The WACC that should be used in capital budgeting is the firm's marginal, after
    7·1 answer
  • If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be:________
    11·1 answer
  • The primary purpose of managerial accounting is to prepare financial statements in accordance with a reporting framework (e.g. G
    10·1 answer
  • I NEEDDDD HELLPPPPP!!!!!!!!!!!!!!!!!!!!
    15·2 answers
  • Marcus is the owner of four Pizza Pizzazz restaurants in Santa Fe. Although the employee selection and training aspects of his b
    6·1 answer
  • You are concerned with a steady decline in profits in your​ company, despite the fact that costs are not rising at an unreasonab
    8·1 answer
  • Sales $ 1,000,000 Net income $ 45,000 Current Assets $ 50,000 Fixed Assets $ 200,000 Total Assets $ 250,000 Current Liabilities
    13·1 answer
  • For each of the following events, explain the short-run and long-run effects on output and the price level, assuming open econom
    11·2 answers
  • In some developing countries, children work in factories when they are 8 or 9 years old. The United States has strict child labo
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!