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Neko [114]
4 years ago
9

_______ occurs when the inflation rate is less than zero percent.

Business
2 answers:
Bess [88]4 years ago
7 0

Answer: We always hear that inflation is bad for an economy, it is bad for people in general and imposes additional burden on the poor. Consequently we start believing that a negative rate of inflation, or deflation, is a good thing. It is not.

Explanation:

Here's why:

   Deflation is a disincentive to producers. Production process usually takes time. Some times there can be huge time difference between the time of placing order for raw material and selling the final product. In a deflationary economy, the prices of goods and services will keep falling during this time. Thus it will be very difficult for producers to make profits and their sale price may not be enough to cover the cost of raw materials.

   Deflation is disincentive to consumers. Think about it, if you have to buy a car, but you know that the car you want to buy will be available at a lower price some time in the future, would you still buy it? Thus in a deflationary economy, consumers tend to postpone their discretionary purchases (they have to buy essentials). This leads to pile up of inventory for producers creating further disincentive to producers.

The above two have a cyclical effect where the economy goes into a downward spiral. There is no production, hence no growth. Soon the economic machinery of the country could come to standstill.

This is the reason why central banks across the world target an inflation rate of around 2%. This is a manageable rate where the price increase are not high enough to hurt the consumers too much while the rate not being low enough to risk going into deflation.

It should be noted however that these consequences follow from a prolonged period of deflation. A month or two of deflation which quickly bounces back to inflation does not lead to such disastrous effects. Such deflation may be good to ease the pressure on the consumers. But central banks are wary, lest it get out of hand.

nikitadnepr [17]4 years ago
3 0

deflation occurs when inflation rate is less than zero percent

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You’ve been asked to participate at a prestigious and well-attended annual conference within your industry. Your participation r
Kay [80]

Answer:

Making sure that your view points are clearly heard.

Explanation:

Effective communication can be defined as the process of passing out information in a clear and concise manner. It is a means of successfully conveying information to the listener.

Effective communication helps to improve productivity among employees in an organisation. This type of communication can be enhanced by a good body language.

In the scenario described above, an effective communication can be achieved by ensuring that your viewpoints are clearly understood by the audience.

4 0
3 years ago
Andrew earns $45,300 in taxable income annually, and pays federal income taxes of $5,345. 40. What is Andrew’s net federal inc
ASHA 777 [7]

Based on the information given Andrew’s net federal income tax rate is c. 11.8%.

Using this formula

Net federal income tax rate=Federal income taxes / Taxable income

Where:

Federal income taxes= $5,345.40

Taxable income=$45,300

Let plug in the formula

Net federal income tax rate=$5,345.40/$45,300

Net federal income tax rate=0.118×100

Net federal income tax rate=11.8%

Inconclusion Andrew’s net federal income tax rate is c. 11.8%.

Learn more here:brainly.com/question/11886585

8 0
3 years ago
sasse inc manufactures 2 products hammers and screwdrivers the company has estimated its overhead in the assembling department t
igomit [66]

Answer:

The answer is: $500,000

Explanation:

In order to allocate overhead cost we will use the overhead cost per part ratio:

Total overhead cost = $2,000,000

Hammers produced = 300,000 x 2 parts per hammer = 600,000 parts

Screwdrivers produced = 600,000 x 3 parts per hammer = 1,800,000 parts

Total parts involved in the production process = 2,400,000 parts

Overhead cost per part = $2,000,000 / 2,400,000 parts = $0.83 per part

Total overhead cost allocated to the production of hammers = 600,000 parts used in hammer production x $0.83 per part = $500,000

8 0
3 years ago
A burger and fries cost $2.20. the burger costs $2.00 more than the fries. how much do the fries cost?
NikAS [45]
To solve this question, we need to do a substitution formula on both equations

Burger + Fries =  $ 2.20

Burger - Fries = $ 2.00


________________________ - 

             2 Fries   = $ 0.20

                Fries    = $ 0.1
6 0
3 years ago
The Clyde Corporation's variable expenses are 40% of sales. Clyde Corporation is contemplating an advertising campaign that will
EastWind [94]

Answer:

The net increase in operating income would amounts to $ 20,000

Explanation:

Computing the contribution margin ratio using the formula as:

Contribution Margin (CM) ratio = 1 - Variable expense ratio

where

Variable expense ratio is 40% or 0.40

Contribution Margin ratio  1 - 0.40

Contribution Margin ratio = 0.6

Now, computing the increase in the net operating income as:

Increase in net operating income = (Contribution Margin ratio × Increase in sales) - Increase in fixed expenses

where

Contribution Margin ratio is 0.6

Increase in Sales is $75,000

Increase in fixed expenses is $25,000

Putting the values above:

Increase in net operating income = (0.6 × $75,000) - $25,000

Increase in net operating income = $45,000 - $25,000

Increase in net operating income = $20,000

3 0
3 years ago
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