Understate profit and inflate assets
Answer:
a. Decline
Explanation:
Whenever there is a reduction in the price level, this results in gains in the real money supply which eventually moves the LM curve to the right.
Hence, given that, the IS curve has a downward slope, the IS and LM curves will meet at a higher level of income and a lower interest rate.
Therefore, the correct answer, in this case, is Option A: DECLINE
Note LM means Liquidity and Money
While IS means Investment and Savings.
Solution :
When the people of this economy trades three of their goods, the price of the good must list 1 price and then the economy requires 3 prices for the people to carry transactions.
Suppose the number of the goods that people trade increases to 15 number, then the price of the goods must list one price and the number of the price that the economy requires increases to 15.
Money has an intrinsic value and it is the unit of account, while that of the currency is the measure of the value and have a purchasing power that government is bestowed on it being a legal tender.
The store of the value characteristics is negatively impacted. But because the ongoing increase in the cost of the standard implies inflation that means that the value of the assets as accounted by the store has a value function as the money decreases.
Even when the cost of the living increases, the money serves as the best medium of exchange and a unit of the account.
Double coincidence of the wants is the barter system that is required.
Answer:
$816
Explanation:
Calculation for Dunbar Incorporated Ending inventory
Formula for Ending inventory units using FIFO method:
Ending inventory units = Beginning balance + Purchase -sales
Leg plug in the formula
490+410 - 600
= 300units
Calculation for Ending inventory
Ending inventory = 300*2.72
= $816
Therefore the Ending inventory assuming FIFO method is use would be $816