1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
WARRIOR [948]
3 years ago
11

Your grandmother tells you a dollar doesn't go as far as it used to. She says the " purchasing power" of a dollar is much less t

han it used to be. Explain what she means. Try to use and explainterms like inflation and deflation
Business
1 answer:
Harrizon [31]3 years ago
4 0

Answer:

See below

Explanation:

My grandmother is referring to the effect of inflation on the currency. Economist defines inflation as the general but gradual increase of prices in the economy over time. As a country experiences economic growth, prices of goods and services tend to increase. The government monitors the increase in prices using tools like the consumer price index (CPI). The resultant figure from the CPI is the inflation rate.

The government desires to keep the inflation rate at a predetermined optimal level. Should the economy grow at a fast pace, the inflation rate will probably rise. The government will respond with measures to control the growth and maintain stable prices.

An increase in prices means that the dollar will buy fewer goods and services than it could previously. A high inflation rate means prices are increasing at a fast pace. The dollar will buy fewer goods, which translates to dollar weakening.

Deflation is the opposite of inflation. It means a general decrease in price in the economy. During deflation times, the dollar gains strengths. It buys more goods and services than in the previous season.

You might be interested in
The two primary factors affecting an​ entrepreneur's choice of legal ownership for a venture are​ ________ and​ ________.
77julia77 [94]
The two primary factors affecting an entrepreneur choice of legal ownership for a venture are TAXES AND LEGAL LIABILITY.
The type of business that an entrepreneur establish will determine the type and the amount of tax that it will be required to pay. The legal liability of the entrepreneur determines the extent to which he can be liable in case he finds himself in a financial mess. The entrepreneur should try and minimize the impacts of these two factors.
5 0
3 years ago
What is the customer demand in the uk for international foods?<br><br> need a detailed answer please
Romashka [77]
UK cuisine is largely international, with curry (for instance) being the most popular foodstuff in the UK, originating from Asia.

As Hungarian, Italian, Greek, Indian, French, Chinese, Vietnamese, Mongolian, and any number of other exotic food outlets are thriving in London, for instance, it would suggest that customer demand for these foodstuffs is enough to sustain business.

A large number of mixed Polish/Halal grocery shops have opened in areas of South London in recent years, catering to an increased number of workers and immigrants from the Middle-East and Eastern Europe.

The good old Fish'n'Chips shop is still going strong.

Many have expanded their menu to include kebabs - only fair, as kebab shops tend to sell chips too...
5 0
3 years ago
Marilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, was the primary beneficiary and their children, Mim
loris [4]

Answer:

a) $200,000 to Jack

Explanation:

Data provided in the question  

Life insurance policy amount of Marilyn Simms  = $200,000

The primary beneficiary = Jack

The contingent beneficiaries = Their children

Now, the distribution of the policy could be taken by only Jack as he is her husband plus he is also a primary benefit of her life insurance policy,

So, the whole amount i.e $200,000 is distributed to Jack

8 0
3 years ago
The Borio Company had an asset with an $8 book value and a $7 market value; it decided to distribute the asset as a property div
ankoles [38]

Answer:

The net income will decrease and also the total assets will also decrease

Explanation:

Here, we want to know the combined effect on net income and total assets of company that made a decision of distributing assets as a property dividend.

As the asset value is down the entry is asset (credit) and loss on asset (debit)

This will effect the net income as it will come down and total assets value also come down

7 0
3 years ago
How many credits toward a college degree can a student get through the AICE program? 5 10 30 50
Rus_ich [418]
"30" is the answer you're looking for.
8 0
3 years ago
Other questions:
  • Personal finance chapter 5. A Cerificate of desposit will often result in a penalty for withdrawing funds beofre the maturityy d
    14·1 answer
  • Weismann Co. issued 15-year bonds a year ago at a coupon rate of 4.9 percent. The bonds make semiannual payments and have a par
    6·1 answer
  • Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations a
    9·1 answer
  • Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $10,0
    11·1 answer
  • Recession, inflation, and high interest rates are economic events that are best characterized as being a. systematic risk factor
    14·1 answer
  • Increasing segmentation of the marketplace and the need to get products to market faster in light of competitors' specialized so
    15·1 answer
  • A new customer, age 45, has been terminated from his assembly-line job of the past 20 years at an automotive parts supplier. Dur
    8·1 answer
  • Jing is considering starting a new business selling organic groceries. It would cost her $350,000 a year to rent store space and
    14·1 answer
  • On October 2, 2019, Dave acquired and placed into service 5-year business equipment costing $70,000. No other acquisitions were
    11·1 answer
  • The administrator may, by order, cancel the registration of a broker-dealer, agent, investment adviser:____.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!