If P Denotes the Price of Goods and Services Measured

question 2

Multiple Choice

If P denotes the price of goods and services measured in terms of money,then

• A)1/P represents the value of money measured in terms of goods and services.
• B)P can be interpreted as the inflation rate.
• C)the supply of money influences the value of P,but the demand for money does not.
• D)All of the above are correct.

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Definitions:

Sales Tax

Sales Tax is a tax paid to a governing body for the sales of certain goods and services, collected by the retailer at the point of purchase.

Depreciable Cost

The total cost of a tangible fixed asset minus its estimated salvage value at the end of its useful life.

Revised Annual Depreciation

An updated calculation of depreciation expense for an asset, altering the original depreciation schedule due to changes in estimation of useful life or resale value.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and made available for use.