Question #1

Why is inflation both good and bad how does the government try to control it?

Kaylis [27]

<span>Inflation is good because it keeps the economy growing as wages increase and demand for goods goes up, but if inflation gets high then the economy can become overheated when prices go up too fast and people can't afford goods. The Federal Reserve Bank, if you're in the USA, will then raise interest rates to make loans more expensive and rewarding people for not spending money, which slows down the economy back to a healthy state.</span>

6 0

3 years ago

An investment counselor calls with a hot stock tip. He believes that if the economy remains strong, the investment will result

liubo4ka [24]

Answer:

$6,000

Explanation:

The computation of the expected profit from this investment is shown below:

= Strong profit × Strong percentage + Moderate profit × moderate percentage - recession losses × recession percentage

= $60,000 × 20% + $10,000 × 60% - $60,000 × 20%

= $12,000 + $6,000 - $12,000

= $6,000

By adding the three situations we can get the expected profit from this investment

3 0

3 years ago

The United States currently imports all of its coffee. Suppose the annual demand for coffee by U.S. consumers is given by the de

Vlada [557]

Answer:

(a) $7; $205 million

(b) $9; $195 million

(c) $400 million

(d) $390 million

(e) Loss = $10 million

Explanation:

(a) Price paid by consumers when no tariff imposed:

= Marginal cost + Distribution cost

= $6 + $1

= $7

Quantity demanded:

Q = 240 - 5P

= 240 - 5 × $7

= 240 - $35

= $205 million pounds

(b) At imposed tariff of $2 per pound, then the new price paid by consumers:

= Marginal cost + Distribution cost + Tariff

= $6 + $1 + $2

= $9

New quantity demanded:

Q = 240 - 5P

= 240 - 5 × $9

= 240 - $45

= $195 million pounds

(c) Lost consumer surplus:

= ($9 - $7)($195) + (0.5)($9 - $7)($205 - $195)

= ($2 × $195) + (0.5 × $2 × $10)

= $390 + $10

= $400 million

(d) Tax revenue collected by government:

= Quantity demanded under tariff × tariff

= $195 × $2

= $390 million

(e) Tax revenue of $390 million received is less than the value of coffee sold under tariff $400 million.

Loss = $400 million - $390 million

= $10 million

4 0

3 years ago

he inventory of Coronado Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizab

shusha [124]

Answer:

a. $410,749

b. $ 418,286

Explanation:

Given;

Part Quantity Cost per Unit Net Realizable Value Carrying amount

110 620 $117.00 $123.00 $117.00

111 920 $73.80 $64.00 $64.00

112 530 $98.40 $93.00 $93.00

113 190 $209.10 $221.40 $209.10

120 370 $252.00 $256.00 $252.00

121 a 1,700 $20.00 $1.00 $1

122 330 $295.20 $289.00 $289.00

The cost or net realizable value of inventory requires that inventory should not be carried at an amount higher than the net realizable value. this is due to the fact that inventory is initially recognized by cost.

Applying the LCNRV method to each item Inventory as of December 31, 2020

= 620 * 117 + 920 * 64 + 530 * 93 + 190 * 209.10 + 370 * 252 + 1700 * 1 + 330 * 289

= $410,749

Applying the LCNRV method to the total of the inventory. Inventory as of December 31, 2020

= 620 * 117 + 920 * 73.8 + 530 * 98.4 + 190 * 209.10 + 370 * 252 + 1700 * 20 + 330 * 295.2

= $456,973

and

= 620 * 123 + 920 * 64 + 530 * 93 + 190 * 221.40 + 370 * 256 + 1700 * 1 + 330 * 289

= $ 418,286

3 0

3 years ago

$6,000 received each year for 6 years on the last day of each year if your investments pay 7 percent compounded annually b$6,000

aivan3 [116]

Answer:

idk this question is very confusing anyone.else know?

8 0

3 years ago