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3 years ago

The term inflation is used to describe a situation in which

Business

1 answer:

photoshop1234 [79]3 years ago

6 0

Answer:

The correct answer is option b.

Explanation:

Inflation refers to the continuous and sustained growth in the general price level. As the price level rises, it reduces the purchasing power or value of cash balances held by the consumers to reduce. This causes real income to decline.

A certain level of inflation is desirable in an economy to promote growth but a high rate of inflation is harmful. Inflation can be of several types such as

Demand-pull inflation
Cost-push inflation

There are several measures used to calculate inflation, for instance, the consumer price index. To correct inflationary pressures, a government uses contractionary fiscal and monetary policy.

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When a mortgage loan with level periodic payments has been completely repaid by the maturity date, it is said to be?

Ira Lisetskai [31]

When a mortgaged loan loan has been completely repaid by maturity date, the loan is said to be fully amortized. For example, you buy a house for $100. The interest on this house is 10% and the mortgage term is 1 year, your mortgage will be repaid in Nov 2018 by paying $9 every month, with a total interest of $5. You repaid the mortgage with interest. Then it is said to be fully amortized.

4 0

3 years ago

The Morris Corporation has $350,000 of debt outstanding, and it pays an interest rate of 12% annually. Morris's annual sales are

Anni [7]

Answer:

TIE 2.47

Explanation:

$\frac{EBIT}{InterestExpense} = $Times Interest Earned$

Our first step will be calculate the interest expense

350,000 debt outstanding * 12% rate = 42,000

Next, we need the EBIT which means Earnings Before Interest and Taxes.

Using the net profit margin of 3% we can get the net income

This means 3% of sales become net income

We are going to apply this to Morris sales to get the net income

$1,750,000 * 0.03 = 52,500$

Now this include the interest and taxes, we need to get the Earning before those two concepts so:

$\frac{NetIncome}{1-Tax Rate} + $Interest Expense = Earnings Before Interest and Taxes$

$52,500/(1-0.40)+42,000 = 87,500 + 42,000 = 129,500$

Now we got everything needed for the TIE

129,500/52,500 = 2.47

3 0

3 years ago

If washburn guitars were to lower the price of the maya pro dd75 to $2,499 from $2,699, sales of the guitar would increase 30 pe

inn [45]

The Washburn guitars reduces their price from $2,499 to $2,699 as a result of the sales of the product drastically increased by 30%, So this represents that the product has an elastic demand.

<h3>What do you mean by elastic demand?</h3>

When the price of a product has a massive effect on the quantity purchased is called Elastic demand. A product is stated to have an elastic demand if sales drop sharply in reaction to a growth in price, or sales spike whilst prices are decreased.

Thus, The Washburn guitars reduces their price from $2,499 to $2,699 as a result of the sales of the product drastically increased by 30%, So this represents that the product has an elastic demand.

Learn more about elastic demand:

brainly.com/question/5078326

#SPJ1

3 0

2 years ago

A bank reconciliation revealed cash per the bank statement of $1,484, cash per company records of $1,681, bank charges of $11, d

kotegsom [21]

Answer:

Correct cash balance is $ 1,580

Explanation:

Balance as per cash book $ 1,681

Less: Bank charges $ ( 11)

Less: NSF cheques $ ( 90)

Adjusted balance per cash book $ 1,580

Balance per bank statement $ 1,484

Add: Deposits in transit $ 317

Less; Outstanding checks $ ( 221)

Adjusted balance per bank statement $ 1,580

4 0

3 years ago

When loans are amortized, monthly payments are ________ , while the interest portion of the monthly payment ________ and the pri

vitfil [10]

Answer:

Constant, Decreases, Increases

Explanation:

4 0

2 years ago