What are the five major costs of anticipated inflation?
What will be an ideal response?
Inflation represents an implicit cost of holding money; firms face menu costs of changing prices; people on fixed nominal incomes are hurt directly; inflation interacts with the tax system to hurt saving and investment in physical capital; and the housing market is distorted by the mortgage-tilt problem.
You might also like to view...
Some of the steps in the accounting cycle are listed below. Select the choice that places these steps in the correct order. 1 . Close the accounts. 2 . Post transactions to accounts in the ledger. 3 . Journalize daily transactions. 4 . Record and post adjustments. 5 . Prepare financial statements
a. 2, 3, 4, 5, 1 b. 3, 2, 4, 5, 1 c. 3, 2, 4, 1, 5 d. 3, 2, 5, 4, 1
According to the case, Battle for the Caribbean, the early leaders of both rival cruise lines used
a. friendly, supportive leadership to train their new employees and to run efficient ships b. tough, highly directive leadership styles to train their new employees and to run efficient ships c. a fun, party-like atmosphere to motivate their service workers d. self-leadership to motivate themselves to think big
What is market segmentation and what are the different segment bases and why are they used?
What will be an ideal response?
Which of the following actions determines when a corporation comes into existence?
A) The charter is obtained from the state. B) The incorporators pay fees, sign the charter, and file required documents with the state. C) The first share of stock is issued. D) The corporate bylaws are written.