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3 years ago

Deflation is generally considered by economists to be a positive economic situation because it creates strong job growth.

Business

1 answer:

Drupady [299]3 years ago

3 0

Answer:

The correct answer is False.

Explanation:

The disadvantages of deflation are basically the reduction of economic activity, the increase in unemployment, the increase in economic uncertainty, the increase in real interest rates due to falling prices, falling demand.

The danger of this situation comes from how difficult it is to get out of it, since a vicious circle is created by which when demand falls, companies are reduced their profits by having to reduce prices to get sales, as a result , they have to reduce costs, which means they have to cut jobs. In turn, if there are people who run out of work, demand will continue to decrease as they will stop buying as well.

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On July 1, 2021, Clearwater Inc. purchased 9,300 shares of the outstanding common stock of Mountain Corporation at a cost of $21

il63 [147K]

Answer and Explanation:

1. The journal entry is given below:

Investment in Mountain $213,000

To Cash $213,000

(Being the original investment is recorded)

Here the investment is debited as it increased the assets and credited the cash as it decreased the assets

The goodwill is

Purchase price $213,000

Less : Fair value of assets purchased (30%of $660,000) $198,000

Goodwill Purchased (difference) $15,000

Cash (30% × $11,700) $3,510

To Investment in Mountain $3,510

(being cash is recorded)

Investment in Mountain (30% 17,700) $5,310

To Investment Revenue $5,310

(Being investment is recorded)

6 0

3 years ago

In rich countries such as the United States, changes in the level of taxation have little impact on the incentives of entreprene

GREYUIT [131]

False. Higher levels of taxation will reduce spending, which will lead to a slower economy and less innovation.

4 0

3 years ago

College education results in a positive externality for society. Explain whether the market failure that results from this exter

allochka39001 [22]

Answer:

In simple words, positive externalilty refers to the phenomenon under which an etity or an individual takes advanatage of any sctions made bo some other entity. Education helps to make individual build a strong character which further results in overall development of the society.

Free university education in Texas would be good for society in terms of quality education becoming cost effective to everyone and thus everyone would be able to sign up for college degree. This would end up making university education accessible to all and improve their standard of living.

However, on the other hand, free university education might make them take things for granted, and the seriousness of education would be significantly reduced. At the very same period, it will be very costly for the state to employ a professional faculty to provide education.

7 0

3 years ago

What energy-carrier molecules are produced by glycolysis?<br>

aev [14]

Answer:

hydrogen

Explanation:Remember that glycolysis produces two pyruvic acid molecules per glucose molecule along with two of the hydrogen-carrying NADH molecules. Remember also that the Krebs cycle produces NADH as well as another hydrogen carrier called FADH2.

7 0

3 years ago

Read 2 more answers

Al works as a cement finisher for a parking lot repaving company. He is suspicious of innovation and innovators. He was one of t

STALIN [3.7K]

Answer:

Al is in the <u>late majority</u> category.

Explanation:

Late majority refers to consumers that are not willing to buy a product until they are sure it has a good performance as they don't want to take risks. These people tend to be resistant to change and they will buy a new product only when most people have already done it. According to this, Al is in the late majority category because he was one of the last people to buy a microwave in the city he lives in and he is suspicious of innovation.

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4 years ago