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
Bess [88]
3 years ago
8

What do inflation rates measure?

Business
1 answer:
My name is Ann [436]3 years ago
6 0

Answer:

C. The speed with which general prices are rising

Explanation:

Inflation measures the rate at which the general prices of goods and services are increasing in an economy. During inflation, the purchasing power of a country's currency is eroded.  Inflation means a selected basket of goods will cost more this period than it did in the previous season.

The consumer price index or CPI is the most acceptable index used in determining the rate of inflation. Inflation may result from high economic growth where firms and individuals have increased incomes resulting in too much money in circulation.  A moderate level of inflation is required to promote spending and sustain favorable economic growth.

You might be interested in
The monetary base is equal to
ss7ja [257]

Answer:

The correct answer is option A.

Explanation:

The monetary base can be defined as the amount of money that is in circulation in the hands of the public or held as reserves by banks.  

The monetary base in an economy is equal to all currency in circulation plus reserves held by banks.  

In other words, it includes highly liquid funds such as coins, notes, and bank deposits.  

The money supply is a broader concept than the monetary base and includes the monetary base and other assets as well.

6 0
2 years ago
Juan was considering purchasing an interest in a tax-exempt bond fund for $100,000 when he discovered that the interest must be
myrzilka [38]

Answer:

The double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .

Explanation:

Calculatation of the after-tax return on both bonds

1)The double-exempt bond does not pay state or federal income taxes.

After-tax return =

Before-tax return = 4.9%

2)The tax-exempt bond is the state income taxes, but not federal in which the states can decide whether to tax their bonds or not.

Interest Income (100,000 * 5%) 5,000

Less: State taxes at 10% (5,000* 10%) (500)

Tax benefit from deduction of state taxes on federal return (500 * 35%) 175

After-tax Income 4,675

After-tax return = 4,675/100,000 = 4.675%

Therefore the double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .

Hence the state income tax will be deductible on Juan’s federal tax return and Juan’s federal taxable income will be lower or lesser by $500 which will produces tax savings at his federal marginal tax rate of $500 * 35% = $175.

4 0
3 years ago
The budget director of Heather’s Florist has prepared the following sales budget. The company had $290,000 in accounts receiva
Elodia [21]

Answer:

Explanation:

1) Schedule of cash receipts:

Since 100% of account receivable is collected in the month following the month of sale, which means $290,000 will be collected in July.

2)  If there are no sales in September, amount of accounts receivable the company will report on its 3rd quarter balance sheet will be 0. Otherwise, the ending accounts receivable at the end of 3rd quarter will be = sales amount in September.

8 0
3 years ago
Read 2 more answers
You purchased 250 shares of a particular stock at the beginning of the year at a price of $104.32. The stock paid a dividend of
Lunna [17]

Answer:

$2917.50

Explanation:

The computation of the dollar return is shown below:

= (Stock price at the end of the year - Stock price at the beginning of the year + Dividend paid) × number of shares purchased

= ($113.65 - $104.32 +$2.34) × 250 shares

= $11.67 × 250 shares

= $2917.50

We simply added the stock price at the end of the year, dividend paid and deducted the stock price at the beginning of the year, then multiply it with the number of shares purchased so that the correct amount can come.

4 0
3 years ago
Demand for individual products can be driven by product life cycles. <br> a. True <br> b. False
Ray Of Light [21]
True djtvfegjuthbggh
8 0
3 years ago
Other questions:
  • Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10, n/30. Elkhorn returned merchan
    9·1 answer
  • Jackson's Programming paid its June rent of $500 cash. Demonstrate how to use the accounting equation to record the transaction
    5·1 answer
  • The ______ predicts that when someone is kind to us we will return their kindness.
    6·1 answer
  • How does tourism benefit the economy
    14·1 answer
  • The term _____________ describes a situation where a ________________ causes a reduction in the buying power of income, even tho
    8·1 answer
  • Malcolm has decided that he wants to open up his own law practice. The time has come to establish prices for his services. Due t
    8·1 answer
  • The 2021 income statement of Anderson Medical Supply Company reported net sales of $12 million, cost of goods sold of $5.5 milli
    8·1 answer
  • MedTech Corp. stock was $55.25 per share at the end of last year. Since then, it paid a $0.45 per share dividend. The stock pric
    5·1 answer
  • "Stock in Daenerys Industries has a beta of 0.73. The market risk premium is 10 percent, and T-bills are currently yielding 5 pe
    6·1 answer
  • simmons company issued four-year bonds with a par value of $1,000,000. the bonds have a 4% coupon rate and interest is payable s
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!