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Lapatulllka [165]
2 years ago
5

If real GDP grows by 3 percent, the velocity of circulation does not change, and the quantity of money grows by 3 percent, then

in the long run the inflation rate is
Business
1 answer:
trapecia [35]2 years ago
7 0

Based on the real GDP growth rate, the velocity of circulation, and the quantity of money, the long run inflation rate will be 0%.

<h3>What is the long-run inflation rate?</h3>

This can be found using the Quantity theory of money:
Money supply x Velocity of circulation = Price level x Real GDP

Can also be written as:

% change in M + % change in V = % change in P + % change in Y

Solving gives:

3% + 0 = P + 3%

P = 3% - 3%

= 0%

The price level is to increase by 0% which means that inflation is 0%.

Find out more on the Quantity theory of money at brainly.com/question/26370040.

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Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Yuliya22 [10]
Here is the correct order of investments from Lower Risk to Higher Risk: <span> Treasury bond − Diversified mutual fund – Stock

Treasury bond is released by Government, so unless your country went bankrupt, it is safe to assume that you will get the investment back.

Diversified mutual fund puts your eggs in a lot of baskets So in case one of your investment fail, the others could still support your overall investments

Since the stock is a single entity and really fluctuative, it is considered as the most dangerous type of investment.

</span>
3 0
3 years ago
What were the origins of the Asian currency crisis?
valina [46]

Answer:

East and South east Asia

Explanation:

The crisis that later blew up to become a financial crisis over the year started from the east and south east Asia countries of Thailand , Indonesia and South korea in 1997 before spreading to other counties  leading to a fall  in value of the currencies ,and fall in stock market and assets prices as the exchange rate continued to nosedive.

It was sparked up by the inappropriate borrowing by the private sector in the previous years

8 0
3 years ago
Accounts Receivable has a balance of $ 4 comma 000$4,000​, and the Allowance for Bad Debts has a credit balance of $ 450$450. Th
Darya [45]

Answer:

What is the net realizable value of Accounts Receivable after a $ 140$140 account receivable is written​ off? is $3550

Explanation:

Account receivable 4000      

Allowance bad debts 450      

       

       

Net realizable =(400-140)-(450-140)

       

                 =3860-310

                          =3550    

5 0
3 years ago
You purchased 1,000 shares of fund ABC for $35.00 NAV per share. You elected the dividend reinvestment plan and had all dividend
Serjik [45]

Answer:

B. - 5.71%

Explanation:

Given that

Purchase price = 1000 × 35 = 35000

Selling price = 1100 × 30 = 33000

Recall that

ROI = Net profit/total investment × 100

And that

Net profit = selling price - purchase price

= 33000 - 35000

= -2000

Therefore,

ROI = -2000/35000 × 100

= - 0.05714 × 100

= - 5.71 %

Thus, total return on investment is -5.71%

3 0
3 years ago
"Suppose the government guarantees the price of carbon. At this price, the payoff after 1 year is $120,190 for sure. What is the
In-s [12.5K]

Answer: a. U.S. Treasuries with 1 year to maturity

Explanation:

The Government guaranteed the price of the carbon and the payoff is to be one year later.

The opportunity cost will therefore be a similar Government security to the payoff term of the carbon sale which is 1 year.

The Government security with a similar payoff term is the US Treasury bill with 1 year left till maturity and this will be the opportunity cost because instead of the Government issuing and paying out that security they will instead pay for the carbon.

4 0
3 years ago
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