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ozzi
3 years ago
13

Because of uncertainty about future inflation, the union devotes a large quantity of resources to monitoring inflation indicator

s in order to maximize its financial position. This illustrates the fact that:__________A. Inflation obscures relative price changesB. Inflation harms lenders and helps borrowersC. Variable inflation is associated with high transaction costs
Business
1 answer:
IrinaVladis [17]3 years ago
7 0

Answer:

C. Variable inflation is associated with high transaction costs

Explanation:

Because of uncertainty about future inflation, it may not uncertain relative to its price change. Therefore, option A is not correct.

In order to maximize financial position, inflation harms borrowers and helps lenders, so option B is also incorrect.

Option C is correct because variable inflation is associated with high transaction costs in order to maximize the financial position. For example, if the inflation rate is 5% during first quarter, the price level is not much to disrupt the financial position. Again, in the next quarter, if the inflation rate changes to 4%, the position will be effective more. However, if it increases, it will not affect too much.

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Why must MPC + MPs always equal 1
AfilCa [17]

Marginal propensity to consume and marginal Propensity to save always equals to each other.you consume only from what you have saved

5 0
3 years ago
The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods
ZanzabumX [31]

Answer:

Business marketing is the correct answer.

Explanation:

3 0
3 years ago
In June 2017, Bill, a single taxpayer, purchased a home for $187.000. Later that year, he added a new room at a cost of $28,400.
zubka84 [21]

Answer:

Gain on sale= $257600

Explanation:

According to IAS 16 (property plant and equipment), the initial measurement of non-current asset is at cost. The cost includes the purchase price and all other directly attributable costs incurred to bring the non-current asset to it's desired location and intended use.

IAS 16 also requires that any subsequent expenditures incurred should either be expensed out if expenditures classify as Revenue expenditure and should be capitalized in the cost of the non-current asset if expenditures classify as Capital Expenditures. In Bill's case, addition of a new room in the existing home structure is an expenditure that classifies as a capital expenditure. Hence cost of the new room will be capitalized in to the cost of the home.

So the book value of Bill's home is = $187000 + $28400

BV of bills home= $215400

Sales proceeds from the sale of the home = $473000

Gain on sale= Sales proceeds - book value

Gain on sale= $473000 - $215400

Gain on sale=257600

7 0
4 years ago
The largest percentage of federal law enforcement officers perform what function?
MatroZZZ [7]
<span>The large percentage of federal law enforcement officers that is nearly 40% performs criminal investigation and enforcement duties. This huge number of officers prosecutes the country’s crime and help control the law and order status in the country. This help in reducing the crime rate in the country.</span>
4 0
3 years ago
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Joyce has determined that if
Damm [24]

Answer:

Variable cost per mile = 0.22 per mile

Total fixed cost = $312

Explanation:

If she drives 2,900 miles then,

Total operating cost = $950

If she drives 4,000 miles then,

Total operating cost = $1,192

Using high low method,

variable cost per mile:

=\frac{(1,192-950)}{(4,000-2,900)}

=\frac{242}{1,100}

= 0.22 per mile

Hence,

Total fixed cost = 1,192 - (4,000 × 0.22)

                          = 1,192 - 880

                          = $312

4 0
4 years ago
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