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3 years ago

Answer the following questions about the (real) inflation tax, assuming that the price level starts at 100.

Business

1 answer:

Rus_ich [418]3 years ago

7 0

Answer:

a) $900 after 1 year

b) $810 after 2 years

Explanation:

This deals with the time value of money concept. This states that money is worth more today than the same amount is worth sometime in the future. The real purchasing power is the nominal purchasing power discounted back as per the prevailing inflation rate.

For a)

$1000 after one year will be worth 1000 * 0.9 = $900 or a reduction of $100 as 1000 today is worth only 900 after 1 year.

For b)

The inflation rate discounts real purchasing power year over year so after 2 years the real purchasing power will be as follows,

Real purchasing power = 900 * 0.90 = $810 which is discounted by 10% inflation for 2 years.

Hope that helps.

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When supply is higher than demand, prices will

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4 years ago

The following is a condensed version of the comparative balance sheets for Sweet Corporation for the last two years at December

notsponge [240]

Answer:

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3 years ago

Zolol [24]

Policies related to setting interest rates, management of money supply, and the buying/selling of treasury bonds are referred collectively as Monetary policy

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<h3>What is monetary policy and fiscal policy?</h3>

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To learn more about Monetary policy, refer

brainly.com/question/13926715

#SPJ4

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2 years ago

In a conversation between two parties, a statement like, "What I'm hearing you say . . ." is an example of:

dimaraw [331]

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3 years ago

If a customer buys $10,000 worth of stock in a cash account, then sells the shares for $12,000 without first paying for the buy

katovenus [111]

Answer:

B) II and III.

Explanation:

Based on the information given the statement that are TRUE are II and III

II. The amount of $2,000($10,000-$12,000) which is the profit for the business will be given to the customer but the customer account will have to be frozen or put on hold for 90 days because the customer had not paid for the buy side before selling the shares for the amount of $12,000

III. In a situation where customer paid the amount for the buy side in full either before or after the fifth business day which is the day that follows the trading date, the customer account that had be frozen will be unfrozen or lifted because the buy side amount had be paid in full.

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3 years ago