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

Joy is taking out a car loan which she will pay back with interest. Which option will require her to pay the lowest amount in in

madam [21]

The best option for her to choose is the one called Anual Compounding. With the rest of the compoundings she will have to pay more money. With a semi-annual rate she wil have to pay almost 1000 dollars more than in an anual compounding. With a quarterly period she will have to pay almost the same amount as a semi-annual period. Now with a monthly period she would have to pay almost 2000 dollars of interest.

5 0

4 years ago

A company's normal selling price for its product is $20 per unit. However, due to market competition, the selling price has fall

AleksAgata [21]

Answer:

value of company inventory = $2600

so correct answer is B) $2,600

Explanation:

given data

normal selling price = $20

selling price fallen = $15

current inventory = 200 units

purchased = $16 per unit

cost fallen = $13 per unit

solution

we know that context inventory meaning is that inventory is reported the lower cost or the replacement cost

here lower is replacement cost = $13

so value of company inventory at lower of cost will be

value of company inventory = 200 units × $13

value of company inventory = $2600

so correct answer is B) $2,600

3 0

4 years ago

Magnolia, Inc. has budgeted sales for the first quarter of the next year to be 45,000 units. The inventory on hand at the beginn

ipn [44]

Answer:

Production= 43,000 units

Explanation:

Giving the following information:

Sales= 45,000 units

Beginning inventory= 5,000 units

The desired ending inventory is 3,000 units.

To calculate the budgeted production, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 45,000 + 3,000 - 5,000

Production= 43,000 units

4 0

3 years ago

Which of the following is most likely missing from your financial plan if you are not prepared for an emergency? a. financing b.

vampirchik [111]

Answer:

savings

Explanation:

Savings are part of income kept aside to be used in the future. Savings can be done in lump sum or phases. The amounts saved maybe some specified or unspecified purposes. One reason why saving is encouraged is to create a fund for use in times of emergency.

The general rule is that individuals or households should have at least three times their monthly expenditure as savings. The funds should be in a safe and accessible place, such as a bank account. Financial planners will always insist on creating a fund for use when the unexpected happens.

5 0

3 years ago

What does the boilerplate of a press release do? A. Summarizes the information that is included in the press release B. Lists em

vaieri [72.5K]

Hello.

The answer is: A. Summarizes the information that is included in the press release.

A boilerplate is after a press release and briefly describes the company or organization.

Have a nice day.

3 0

3 years ago