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
Lesechka [4]
3 years ago
13

Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of ch

ips, and one comic book. In year one, the basket costs $9.00. In year two, the price of the same basket is $8.00. From year one to year two, there isdeflation at an annual rate of 1.25%. In year one, $72.00 will buy____baskets, and in year two, $72.00 will buy____baskets. This example illustrates that, as the price level falls, the value of money____ .
Business
1 answer:
Virty [35]3 years ago
8 0

Answer:

Year 1, Year 2 purchasing power = 8 , 9 (respectively). As price level fall, value of money<u> Increases </u>

Explanation:

Year one purchasing power = Money ($) / Price per basket = 72 / 9 = 8

Year two purchasing power = Money ($) / Price per basket = 72 / 8 = 9

This implies that, as price level falls (from 9 to 8 here) ,the value of money ie purchasing power increases (from 8 to 9)

You might be interested in
Description of the the target market is formed in the___ part of the business plan
Alexandra [31]

Answer:

Market analysis

Explanation:

A business plan is a document that shows the goals of a business and details the roadmap to achieve them. It has several sections, with each giving specific information about the business.

The market analysis part talks about the target clients. The sections give detailed data on the industry, including competitors, market performance, and prevailing trends. It describes customers in the target industry.

5 0
3 years ago
Ruth is a mother of two, loves to travel, is a member of a book club, enjoys jogging, likes to wear the latest fashions, and is
Margaret [11]

Answer:

(A) A component lifestyle.

Explanation:

Component lifestyle:-It is choosing goods and services that fulfills one's various needs and interests rather than following a single, traditional stereotype.

So according to the question Ruth is a person having various interests and also a police officer by profession.So she has very diverse needs and interest and they affects her choice of goods and services because she wants goods and services that meet's her diverse needs.So her lifestyle is component.

5 0
3 years ago
PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!!
nlexa [21]

Answer:

A

Explanation:

8 0
2 years ago
How does a trade deficit occur?
NeTakaya

Answer:

It is an economic condition that occurs when a country is importing more goods than it is exporting.

Explanation:

3 0
3 years ago
Read 2 more answers
A corporation is considering expanding operations to meet growing demand. With the capital expansion, the current accounts are e
andre [41]

Answer:

B) a decrease of $40,000

Explanation:

As we Know Working capital is the the net or current assets and current liabilities.

Increase in Current Assets

Cash                              $20,000

Accounts receivable    $40,000

Inventories                   <u>$60,000</u>

Total Increase in CA   $120,000

Increase in Current Liabilities

Accounts payable       $50,000

Accruals                       $10,000

Long-term debt           <u>$100,000</u>

Total Increase in CA   $160,000

Increase in Working Capital =  Increase in Current Assets - Increase in Current Liabilities

Change in Working Capital = $120,000 - $160,000 = -$40,000

As current Liabilities increased more than the current assets, so the working capital will decrease by $40,000

6 0
3 years ago
Other questions:
  • What would it signify if the population of a country remained the same while the real GDP increased? A) the economy is in declin
    5·2 answers
  • What was one positive effect of economic globalization?
    13·2 answers
  • At December 31, 2016, House Co. reported the following information on its balance sheet.
    15·1 answer
  • Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation
    10·1 answer
  • What best describes the difference between careers and industries
    9·1 answer
  • Are firms like homebuilders that sell products whose demand depends partly on demographic factors likely to be more or less affe
    10·1 answer
  • If scrap, common to all jobs, is returned to the storeroom and the time between the scrap being inventoried and its disposal is
    15·1 answer
  • In a particular setting where the newsvendor model applies, demand is Normally distributed and the critical ratio is 0.4. Then,
    12·1 answer
  • Which of the following is responsible for conducting an independent
    15·1 answer
  • BioScience Inc. will pay a common stock dividend of $3.20 at the end of the year (D1). The required return on common stock (Ke)
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!