All categories

4 years ago

In the long run, inflation is caused by

Business

1 answer:

NeTakaya4 years ago

8 0

Answer:

c. governments that print too much money

Explanation:

In the long run, increase in money supply causes inflation. Since there are more money circulated in the market than the needs for transaction, inflation (an increase in prices) will be rise inevitably.

The government print too much money when they borrow to much or cannot pay their loans. The government finance its policies by tax and borrowing (issuing the government bonds), when the tax is not enough, the will issue bonds. If the due comes and they do not have enough money, they may force the central bank to print more money to pay their loans or buying their own bonds. This causes the rise of money supply resulting in inflation in the long run. Bolivia is an example of this situation.

You might be interested in

A friend comes to you and asks you to invest in his business instead of investing in Treasury bonds. You think he has a good bus

asambeis [7]

Explanation:

Treasury bonds are U.S government debt securities, that are fixed with a maturity period of 10 years. Having almost little or no risk. So investment in terms of Treasury bonds can be relatively safe.
In the given scenario the fundamental factor affecting the cost of money could be Risk and Inflation
As mentioned above T-bonds are almost risk-free which means safe and guaranteed returns, however business cannot be completely risk-free and you don't know how invested money would give returns or even not so there is a risk involved here.
Inflation, as the word means, is a general increase in prices invariably leading to the downfall of purchasing value for money. Inflation is market dependent. As that will definitely have an impact on the cost of doing business and related factors.

7 0

3 years ago

Producers often work to maximize their and make them as large as possible. True or False

dsp73

The correct question should be:

Producers often work to maximize their profit and make them as large as possible. True or False

Answer: True

Explanation:

The aim of every business is to make profit. A producer is into the business of taking raw materials and processing them into finished or semi-finished goods and selling them to make profit.

5 0

3 years ago

Read 2 more answers

What could this sign is on the left side

Mnenie [13.5K]

Answer:

well the sign on the left showes a coffee and on the right they said twi dollars for the brewed coffee

4 0

3 years ago

The Marshall Company has a process cost system. All materials are added when the process is first begun. At the beginning of Sep

Mademuasel [1]

Answer:

c) 48,000 units

Explanation:

The question is to compute the equivalent units of materials in September for Marshall Company

It is computed as follows:

1) Beginning Equivalent Unit

At the beginning, Units = 0, Percent completed = 0 and Equivalent unit= $0

Equivalent Units Started ad Completed

2) Started Units= 50,000 units

Units still in process at the end of September = 5000 units

Started and Completed = 50,000 - 5,000 = 45,000

Since the Units completed is 45,000, it means 100% completed equivalent unit is 45,000

3) Closing Equivalent Units

In process = 5,000 units and percent completed is 3/5

Equivalent unit is 3/5 x 5000 = 3000 units

Finally, total equivalent units for conversion costs in September

= 0 + 45,000 + 3,000

=48,000 units

4 0

3 years ago

Economic efficiency is

Marina CMI [18]

Answer:

The correct answer is option A.

Explanation:

A market outcome will be considered economically efficient if the marginal benefit earned from the last unit is equal to the marginal cost incurred in the production of the last unit while the economic surplus or the sum of consumer surplus and producer surplus is at maximum.

If the marginal cost and benefit are not equal then the outcome is said to inefficient. It means that either the resources are not being allocated efficiently or the production is not efficient.

6 0

4 years ago