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sammy [17]
3 years ago
5

An increase in the price level reduces the real value of financial assets with fixed money values, and, as a result, the holders

of these assets decrease their spending.
(A) True
(B) False
Business
1 answer:
ohaa [14]3 years ago
7 0

Answer:

(B) False

Explanation:

In fact, if assets have a fixed monetary value, increasing the overall price level (inflation) will reduce the real value of these assets. Thus, the purchasing power of the holders of these assets will decrease. However, it is not correct to say that the holders of these titles have reduced their spending, since what determines spending is individual perceptions and needs. Some of the holders may decrease their spending in the face of an inflationary process, but others may maintain or even increase their spending.

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dem82 [27]

The decline in the value of the asset turnover ratio indicates an unfavorable trend in using assets to generate sales.

<h3>What is the asset turnover ratio?</h3>

The asset turnover ratio is a financial ratio known as the activity ratio. It measures the efficiency with which a firm carries out its operations. The higher the asset turnover ratio , the more efficient the firm is and the lower the ratio, the less efficient the firm is.

The asset turnover ratio = revenge / average total ratio

To learn more about financial ratios, please check: brainly.com/question/26092288

7 0
3 years ago
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levacccp [35]
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Firdavs [7]

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3 0
3 years ago
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svlad2 [7]

Answer:

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The following hypothetical production possibilities tables are for China and the United States. Assume that before specializatio
Degger [83]

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