Answer:
Her real income has decrease by $7,333.33
Explanation:
<em>Real income is the amount of goods and services that a give amount of quantity money can purchase. It is also known as the purchasing power of money. </em>
To determine if there has been a change in her real income, we will compare her real income 20 years ago to her real income 5 years later. This will be done as follows;
Step 1
Determine her real income 5 years after her last reunion
Real income in current year = (CPI in base year/CPI in current year ) × Nominal income
= (80/150)× 80,000
= $42,666.67
Step 2
Determine change in real income
Her real income has decrease by $7,333.33. This is difference between her real income 5 years ago and now. That is $50,000 - $42,666.67.
Tis implies she cannot purchase as much as she could 5 years ago because of inflation.
Answer:
Please refer to the attached
Explanation:
Please refer to the attached.
Note that in trial balance Debit side must always be equal to debit side
The correct statement is Inflation is problematic if unexpected
Money loses purchasing power during inflation and there's too much of it.
Answer:
c. The statement is false because the demand for incandescent light bulbs would increase as the price of compact fluor. light bulbs fell.
Explanation:
If improvements in production technology reduce the price of incadescent light bulbs, the normal thing that would happen is that demand for this good would increase, because now people will be able to buy the good at a lower price.
Answer:
B) Supply of foreign currencies and a supply of dollars in the foreign exchange markets
Explanation: just search it up they don't demand for foreign currencies they supply of foreign currencies
