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Vadim26 [7]
3 years ago
14

People go to the bank more frequently to reduce currency holdings when inflation is high. The sacrifice of time and convenience

that is involved in doing that is referred to asa. inflation-induced tax distortion.b. relative-price-variability cost.c. shoeleather cost.d. menu cost
Business
1 answer:
IrinaK [193]3 years ago
6 0

Answer:

c. shoe leather cost.

Explanation:

During times of high inflation, interest rates usually go up. Money in the banks earns higher interest compared to when inflation is low. When the inflation rate is high, the prices of goods and services increase rapidly, resulting in a reduction in currency's purchasing power.

Individuals and firms opt to keep as little cash in hand as possible. Holding a lot of cash at such times is not prudent as banks offer high-interest rates. Keeping cash become costly due to currency depreciation. As firms and households keep most of the money in banks, they incur a lot of transport costs and time going to banks to withdraw cash for normal expenses. The time and transport costs incurred are referred to as shoe leather costs.

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xxTIMURxx [149]

Answer:

Correct Answer:

4. Build beyond the property line of the land

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7 0
3 years ago
If materials were added at the beginning of the process, how many equivalent units of production for conversion costs would ther
Xelga [282]

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C.105,500 units

Explanation:

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4 0
2 years ago
The four underlying assumptions of generally accepted accounting principles are economic entity, monetary unit, periodicity, and
DerKrebs [107]

Answer:

1. Going concern

2. Economic entity

3. Monetary unit

4. Periodicitys

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1. Since Jumbo's Restaurant is planning to close, the assumption of continuity (going concern) is no more applicable. This should be disclosed. Instead asset was still recorded at historical price which is misleading.

2. Gorloks Tax Services is an economic entity, and the property and assets of owners are not considered to be for the business. In this case the boat Sam bought was wrongly reported as an asset of the company.

3. Claim Jumpers when reporting the 5 trucks purchased must include a monetary value for them. The assumption of monetary unit states that all items reported on the balance sheet must be expressed in monetary terms.

4. Cobbler's Etc violated the assumption of periodicity which states the financial position of the business must be declared in a particular accounting period. Accounting period can monthly, quarterly, biannually, and yearly. The business should choose and accounting period and ensure financial position is reported for each of them. In this case financial reporting is not consistent with reporting happening after 14 months and before that 18 months.

6 0
3 years ago
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Answer:

b. external

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5 0
3 years ago
Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then in the
eduard

Answer:

the answer is  d

Explanation:

Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then in the short run employment and production falls.

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4 0
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