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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.

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Your coworker Ginny is really concerned about a project that he has just been assigned. He is in charge of analyzing and determi
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Answer:

The answers are:

  • a demand curve
  • a demand schedule

Explanation:

A demand curve is a graph showing the relationship between the price of a product, e.g. TV, on the y axis, and the quantity demanded for that product at a certain price (on the x axis). It models the price-quantity demanded for a particular market.

A demand schedule illustrates the same price-quantity demanded relationship for a product as a demand curve, only that it is presented as a table chart instead of a graphic curve.

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3 years ago
Saira, Inc. has the following income statement (in millions): SAIRA, INC. Income Statement For the Year Ended December 31, 2017,
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Answer:

60%

Explanation:

To calculate the percentage assigned to cost of goods sold , we should use the formula:

=\frac{Cost Of Goods Sold}{Sales}

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= 0.60 = 60%

Therefore, the percentage assigned to Cost of goods sold is 60%

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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
g100num [7]
Have no clue sorry that is not the answer
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Which of the following assumptions is embodied in the AFN equation?
aleksandr82 [10.1K]

Answer:

d. Accounts payable and accruals are tied directly to sales.

Explanation:

Additional funds needed method determines the amount that the company needs to finance the increase in total sales.

In response to the increase in sales, the company has to increase its assets to achieve that goal. The increase in total assets is partly offset by an increase in liabilities and the other part is offset by an increase in retained earnings.

The only true statement of the AFN equation is the option d), and the other options are not right.

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Answer:

B. Annuity due

Explanation:

Annuity Due

This is the repetition of money paid that is made at the beginning of each defined period. Period could be monthly, quarterly, yearly and so on. A common example used in explaining this is Rent paid at the beginning of each month. Annuity due have all payments in the same amount, like in this case, Janis is going to be paid $500 a month for 48 months. Meaning the amount tonbe paid doesnt changes. Also another characteristic of annuity payments is that all payments are paid at thesame time interval. Again, here, Janis is being paid every month at the same time interval NOT, today monthly and the next payment weekly.

It is a series of payments that is made or received over a predetermined period of time.

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3 years ago
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