All categories

3 years ago

What is the difference between inflation and deflation.

Business

2 answers:

tino4ka555 [31]3 years ago

7 0

Answer:

D. Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boost the value of money.

Explanation:

Inflation is the general increase in prices in the economy over time. As the economy grows, prices automatically rise. There is a direct correlation between economic development and inflation. A high growth rate may result in a high inflation rate. High growth is caused by an increase in demand for goods and services.

Inflation erodes the purchasing power of money. As prices increase, it means one unit of money will purchase fewer quantities of goods and services than the previous season.

Deflation is the opposite of inflation. It means a general decline in prices in the country. Low production due to reduced demand causes prices to decline. One unit of money will purchase more quantities of goods and services as prices decline.

igor_vitrenko [27]3 years ago

7 0

Answer:

I believe the answer is D :)

Explanation:

You might be interested in

A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price in each of the next

MaRussiya [10]

Answer:

a-1) Present value of the instalment option = $93.08

Present value of paying the bill immediately =$90

a2) Paying the bill immediately is the better deal

b-1) Present value of the instalment option = $88.65

b-2) Paying in instalments in this case is the better deal

Explanation:

a-1) Calculate Present value of the instalment option

The payments are spread out as follows: $25 immediately, and 25 at the end of each of the following 3 years, this is an annuity due where the present value is calculated as follows:

$Present value =PMT*\frac{[1-(1+i)^-^n]}{i}*(1+i)$

PMT = the annuity payment at the beginning of each period=$25

i = interest rate per period that would be compounded for each period

=0.05

n = number of payment periods=4

Present value = $25*\frac{[1-(1+0.05)^-^4]}{0.05}*(1+0.05)$ =$93.08

Present value of paying the bill immediately= $100 less the 10% discount= $100*0.9 = $90

a-2)Paying the bill immediately is the better deal as it has a lower cost of $90 compared to paying in instalments which a present value cost of $93.08

b1) If the payments on the 4-year instalment plan do not start for a full year, then the present value of the payment stream is calculated as follows:

$Present value =PMT*\frac{[1-(1+i)^-^n]}{i}*\frac{(1+i)}{1+1}$

= $PMT*\frac{[1-(1+i)^-^n]}{i}$

= $25*\frac{[1-(1+0.05)^-^4]}{0.05}$ = 88.65

b-2) paying in instalments in this case is the better deal as it has a lower cost of $88.65 compared to paying the bill immediately which has present value cost of $90.

4 0

3 years ago

Anybody wanna be friends

r-ruslan [8.4K]

Answer:

Meeeeeeeee

Explanation:

Also I’m bored

4 0

3 years ago

Read 2 more answers

Firms will typically maintain a list of research and development projects ranked by expected rate of return. Expected rate of re

ddd [48]

Expected rate of return is defined as the amount of money an individual gets on investment.

<h3>What is expected return?</h3>

The expected return is the amount of profit or addition on money invested that an individual who is an investor is expected to get after a periods of time on the investment.

Therefore, expected rate of return is defined as the amount of money an individual gets on investment.

Learn more on rate of return below

brainly.com/question/16725994

#SPJ1

4 0

2 years ago

Suppose seafood price and quantity data for the years 2000 and 2009 follow. Use 2000 as the base period. Seafood 2000 Qty. (lb)

Ksivusya [100]

Answer:

a) Price Relative for Halibut is 115.9 (1 d.p)

Price Relative for Lobster is 85.4 (1 d.p)

Price Relative for Tuna is 105.4 (1 d.p)

b) The Weighted Aggregate Price Index for the seafood catch is 98.4.

Explanation:

a) The Price Relative for a good refers to it's current price divided by it's base price times 100. It therefore measures a change in price across different periods.

Writing the formula as stated is,

Price Relative = Current Price / Base Price * 100

Price Relative for Halibut = 2.33/2.01 * 100

= 115.9 (1 d.p)

Price Relative for Lobster = 3.09/3.62 * 100

= 85.4 (1 d.p)

Price Relative for Tuna = 1.97/1.87 * 100

= 105.35

= 105.4 (1 d.p)

b) The Weighted Aggregate Price Index enables us to see how prices in a particular basket has changed over a period of time. It is calculated as follows,

Weighted Price Index = (Sum of Weighted Current Price ) / ( Sum of weighted Base Price) * 100

Sum of Weighted Current Price = (75,190 * 2.33) + (83,080 * 3.09) + ( 50,779 * 1.97)

= 538,124.53

Sum of Weighted Base Price = (75,190 * 2.01) + (83,080 * 3.62) + ( 50,779 * 1.87)

= 546,838.23

Weighted Price Index = (538,124.53 / 546,838.23) *100

= 98.4

The Weighted Aggregate Price Index for the seafood catch is 98.4.

6 0

4 years ago

An important aspect of the market system is that producers and consumers always have to consider the public interest in making p

marusya05 [52]

Answer:

The statement is: False.

Explanation:

In a market system or market economy, the output is determined by the natural forces of the market participants, that is demand and supply. Though, each of them intervenes in the economy according to their interest. Businessmen tend to control the production resources at will to generate revenue under this type of market.

5 0

4 years ago