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SOVA2 [1]
2 years ago
9

Economists use the term inflation to describe a situation in which a. some prices are rising faster than others. b. the economy'

s overall price level is rising. c. the economy's overall price level is high, but not necessarily rising. d. the economy's overall output of goods and services is rising faster than the economy's overall price level.
Business
1 answer:
Fofino [41]2 years ago
6 0

Answer:

b

Explanation:

Inflation is a persistent rise in the general price levels

Types of inflation

1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise

2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect  

Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.

Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.

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Which of the following is not a true statement about "demand"?
Afina-wow [57]

Answer:

Demand is the same as quantity demanded.

Explanation:

3 0
3 years ago
An investment offers a total return of 15 percent over the coming year. Janice Yellen thinks the total real return on this inves
Ludmilka [50]

Answer:

The inflation rate of return is 3.60%

Explanation:

As we know,

Inflation rate of return = {( 1 + nominal rate of return) ÷ ( 1+ real rate of return)} - 1

= {( 1 + 15%) ÷ (1+11%)} - 1

= (1.15) ÷ (1.11)} - 1

= 1.0360 - 1

= 0.360 or 3.60%

The inflation rate of return shows a relationship between the nominal rate of return and the real rate of return. We simply divide the nominal rate of return by real rate of return

8 0
3 years ago
With a lifestyle, people select products and services that fulfill their diverse needs and interests, rather than conforming to
Alinara [238K]

The lifestyle, which has enabled people to select products and services to meet their different needs without the traditional conformity to stereotypes, is<em> known as </em><em>component lifestyle</em>.

  • Consumers' free choices are not based on military lifestyle, which is restricted to the military personnel.

  • Free choice is not a factor of career lifestyle, which has more to do with the availability of resources.

  • Consumers' free choices are not a result of fad lifestyle, which refers to the general conformity of the population to a particular style.

Thus, the only lifestyle, which has enabled people to select products and services to meet their specific needs and interests, is component lifestyle.

Read more about lifestyles at brainly.com/question/12065546

6 0
3 years ago
Read 2 more answers
The investment interest expense deduction is limited to the taxpayer's net investment income.
cricket20 [7]

Answer:

The amount of interest which can be deducted in one year is limited to the net investment income of a taxpayer for that year.

Explanation:

This amount can not be exceeded. Investment income according to the IRS includes:... It does not include eligible dividends or net capital gains other than those that you want to include.

Limitations on investment interest Not all interest that you pay on investment loans are allowed to be deducted. For particular, the IRS forbids registration of certain forms of investment value, including:

1. Home mortgage interest eligible.

2. Value to raise tax-exempt revenue, as if the municipal tax-free bond is to be bought on a margin.

3. Option straddles, which are not available to most investors as an advanced investment strategy.

4.Interest in any passive operation when measuring profit or loss

7 0
3 years ago
An employee has enrolled in his company's nonqualified deferred compensation plan. The benefit paid at the time of the employee'
OLga [1]

Answer:

A) taxable as ordinary income to the employee and can be taken as a deduction by the employer.

Explanation:

When an employee defers to receive the compensation plan he gets the benefit of lower tax bracket each year, ultimately decreasing his tax liability.

Further when he receives the complete amount his income stands taxable. Accordingly at that time ordinary tax rates as per FICA are applicable.

On the employers part it is only deductible when the employee includes it in the income of the year, and pays tax on such compensation received.

Thus, when he receives it as compensation on retirement it is normally taxable at ordinary rates to the employee and deduction can be claimed by the employer.

4 0
3 years ago
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