Answer:
Wealth will be redistributed from creditors to debtors
Explanation:
Deflation refers to the general fall in the price level of goods and services when rate of inflation becomes lesser than 0%.
Due to the fall in the price level, goods and services become cheaper, credit providers reduce the quantum of credit provided.
Fall in the prices leads to lower expenditure by the purchasers owing to lower level of confidence and such buyers delay their purchases.
Deflation increases the purchasing power of consumers since at the same level of income, buyers can now buy more compared to previously.
Hence, those who earn fixed pension observe an increase in the value of such pension.
Answer:
The correct answer is option D.
Explanation:
GDP can be defined as a measure to calculate the economic growth of a nation. It includes the production of final goods and services in the geographical boundaries of a nation.
It does not include home production of goods and services, this is because such goods and services do not involve a market transaction. For instance, if a person is baking bread at home he/she is not being paid for it by anyone.
The answer to this question is A.
Answer:
Explanation:
Based on the scenario being described within the question it can be said that this situation can be best explained to George by stating that his compa-ratio shows that he is at the top of his pay range and that he is already earning above the market midpoint set in his pay grade. Therefore there is a so called "ceiling" to how much he can be paid in his current position.
Answer:
See explanation section
Explanation:
Journal entry to record R. Selleck's Investment is as follows:
Debit Cash $10,000
Debit Office Equipment $5,000
Credit Capital, R. Selleck $15,000
Since he provides cash and office equipment, both the investment will be considered as capital of R. Selleck. Since he does not take any loan to provide money to the partnership business, no entry is made for loan.
