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2 years ago

The inflation tax refers to

Business

2 answers:

Mandarinka [93]2 years ago

4 0

Answer:

The correct answer is letter "D": the revenue a government created by printing money.

Explanation:

<em>When the government prints more money, there will be more supply of it. A higher supply of money tends to increase general prices causing inflation. Therefore, households will have to pay more money for goods and services which implies they will be paying more taxes, benefiting the government since it will have more money to finance its projects. </em>

The previous practice mentioned is implemented by governments that are not willing to increase the interest rate directly.

Daniel [21]2 years ago

4 0

Answer:

The correct answer is option D) the revenue a government created by printing money

Explanation:

Inflation tax is not actully a tax. It is the price, extra cost that people have to bear as the inflation keeps increasing.

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A provision requiring a construction contractor to pay $300 for every day it is late in completing the construction contract is:

jasenka [17]

Answer:

liquidated damages provision.

Explanation:

Liquidated damages can be regarded as one that is been presented in some particular legal contracts which is an estimate of otherwise intangible to one of the party or hard-to-define losses. It can be regarded as a provision which give room for the payment of a specified sum in case there is breach of contract by one of the parties. It can be regarded as contractual provision set up so that a party in breach will need to make a payment of pre-determined amount , which serve as compensation for failure by breaching partyin performing particular obligation.

For instance, provision requiring a construction contractor to pay $300 for every day it is late in completing the construction contract is liquidated damages provision.

7 0

2 years ago

1. Which of the following is true about finding the present value of cash flows?

Bogdan [553]

Based on present value calculations, the following are true:

A. Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.
B. The security that earns an interest rate of 6.00%.
B. An investment that matures in five years.
B. Other things remaining equal, the present value of a future cash flow decreases if the discount rate increases.

<h3>What is true of present value calculations?</h3>

Present value relies on the interest rate and the number of periods that an investment. The longer the investment period, the lower the present value.

The higher the interest rate, the lower the present value as well, For this reason, the 6% investment will be worth less today and the five year investment will have a lower price today.

Find out more on present value at brainly.com/question/15904086.

#SPJ1

4 0

1 year ago

Riley operates a plumbing business, and this year the three-year-old van he used in the business was destroyed in a traffic acci

Firlakuza [10]

Answer:

I think 6,408

Explanation:

3 0

2 years ago

Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the compar

11111nata11111 [884]

Answer:

Net cash used by investing activities -$16,000

Explanation:

The computation of the amount of net cash provided or used by investing activities is shown below:

Equipment purchase for cash -$66,000

Proceeds from the sale of equipment $50,000

Net cash used by investing activities -$16,000

The purchase is a cash outflow so it is in negative sign while the sale is cash inflow so it is to be shown in a positive sign

6 0

2 years ago

Vanessa Company is evaluating two projects. project 1 is a project requiring a capital expenditure of 814,400. the project has a

Olegator [25]

Answer:

The average rate of return on investment using:

+ Straight line method: 23.58%

+ Net present value: 17.85%

Explanation:

* The average rate of return on investment using straight line method:

We have Average rate of return = Average net profit/ Average investment

with average net profit = (90,000 + 80,000 + 40,000 + 30,000 + 240,000)/5 = $96,000

average investment: (investment at the beginning + investment of the end) /2 = 814,400/2 = 407,200

=> Average rate of return = 96,000 / 407,200 = 23.58%

* The average rate of return on investment using net present value:

The average rate of return is the internal rate of return on the project which is the rate that brings the net present value to zero.

Denote the rate as x => (1+x)^(-t) is the discount rate of year t. Denote 1+x as a, we have:

-814,400 + 210,000/a + 200,000/a^2 + 160,000/a^3 + 150,000/a^4 + 720,000/a^5 = 0 <=> a = 1.1785

=> x = 17.85%

6 0

2 years ago