What is inflation? A) A decrease in the general price level B) An increase in the general price level C) A decrease in the money supply D) An increase in the money supply Don't use chatgpt otherwise give 20 downvotes
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- Which of the following statement about inflation is incorrect a. A positive inflation rate reduces purchase power of dollars b. Excess money supply increases inflation c. A positive inflation rate increases the real interest rate d. A positive inflation rate lows the real interest rateA change in money demand or a shift in the money demand curve is caused by a change in * the interest rate. non-interest determinants. cost of borrowing. all of the aboveIn a complete sentence give an example of something that has been affected by inflation.
- dont use chatgpt answer The present value of a future amount: a. will always be less than the future amount b. can be calculated precisely if the discount rate and number of periods is known c. is worth less than the future value d. both a. and b. above are true"Start saving early because inflation reduces the value of your money" If you agree with the sentence answer as "True" If you dont agree with the sentence answer as "False" Select one: O True O FalseInflation is a general rise in market prices that affects all goods equally. OA. True OB. False
- 1) Inflation represents the rate of increase of the average price of goods. If inflation decreases from 10% to 5%, does the average price of goods decrease? Explain.[Question 6 Which one of the followingsituations will decrease the cash cycle as all elseheld constant?Select one:rateA. Decreasing the accounts payable periodB. Increasing the accounts receivable turnoverC. Increasing the inventory periodD. Decreasing the inventory turnover rateThe amount of goods and services each dollar buys at a given point in time is: Group of answer choices inflation None of the options consumer price index (CPI) purchasing power
- Which of the following statements is TRUE regarding the Fisher Effect? A. The Fisher Effect illustrates the inverse relationship between inflation and nominal interest rates. B. Nominal interest rates are directly related to expected inflation in part because borrowers want to protect their purchasing power reward from being wiped out by lower inflation. C. If prices rise by 7% and your salary increases by 9%, you will experience a gain of purchasing power D. Ceteris paribus, the higher the inflation, the higher the real interest rate Explain all optionsLogan is conducting an economic evaluation under inflation using the then-current approach. If the inflation rate is j and the real time value of money rate is d, which of the following is the interest rate he should use for discounting the cash flows? a. j b. d c. j + d d. j + d + dj.When does the present economy studies do or use? a. When interest rate is not given b. When time is not given c. When time is not given but interest rate is given d. When time is given but interest rate is not given