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2 years ago

If the stock of money is $250 billion, velocity is 5, and the price level is 10, what is real output

Business

1 answer:

Lostsunrise [7]2 years ago

7 0

The real output given the money supply, price level and the velocity of money is $125 billion.

<h3>What is the quantity theory of money?</h3>

The quantity theory of money states that the price of goods and services in an economy is directly proportional to the money supply.

Quantity theory of money: price x real output = money supply x velocity

<h3>What is the real output?</h3>

Real output = (money supply x velocity) / price

(250 billion x 5) / 10 =

$125 billion

To learn more about the quantity theory of money, please check: brainly.com/question/26370040

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According to the basic double entry principle of accounting, we

Vlad1618 [11]

Answer:

D. Any of the above, depending on the transactions

Explanation:

The double entry principle simply means that any accounting transaction has two records: one credit, and one debit, and it depends on the nature of the transaction, and of the accounts involved which specific value is credited and which one is debited.

For example, if a firm purchases 100$ of office supplies with cash, the credited account is cash, because cash is reduced by $100, while the office supplies account is debited by the same value.

If a firm sells 100$ of office supplies instead, the office supplies inventory is credited for this value, while the same amount of cash is debited for this same amount.

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3 years ago

Develop an Excel worksheet simulation for the following problem. The management of Paragon Household Products is considering the

Alexxandr [17]

<h2><u>Disclamer:</u></h2>

As it ask to run simulations the values calculates will difer even if you follow the same step as I did.

Answer:

Mean Profit: $ 4,295

Probability of loss: 29.80%

As the product has a mean profit it will on average generate gains

but:

as the standard deviation of the simulation was $ 7,778.40

<u>we should not invest on the product as it is to variable</u>

<u>Explanation</u>:

We are going to use the =RAND() function of excel

which, generates a random number between 0 and 1

This will be done 1,000 times 500 for the variable cost

and 500 for the demand.

Then we copy and paste this numbers to get them fixed.

Then, we convert them into actual cost and demand in units considering their distribution

using excel dist.norm.inv

Now, with this values we solve for profit on each one.

<u></u>

FOr the complexity I attached the excel file as the plataform interface cannot handle large tables.

Download xlsx

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3 years ago

On June 1, 2018, Blue Co. distributed to its common stockholders 180,000 outstanding common shares of its investment in Red, Inc

faltersainse [42]

Answer:

Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.

Explanation:

Book value per share of Red Inc = $1.20 per share

As the value of share is revised just after the declaration but before distribution there will be gain on sale of investment.

Net gain = Sale price - Book value

= $3.40 - $1.20 per share = $2.2 per share

Total gain for the year end on June 30 will be

= $2.2 per share X 180,000 shares = $396,000 shares

Thus Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.

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3 years ago

Curtis invests $250,000 in a city of athens bond that pays 7% interest. alternatively, curtis could have invested the $250,000 i

Cloud [144]

I guess the correct answer is 6.48%

If Curtis invested in the Initech, Inc. bonds, The after-tax rate of return from this investment is 6.48%.

Since, [(1 - 0.28) × (250,000 × .09)]/250,000 = .0648.

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3 years ago

Economics-- multiple choice!

artcher [175]

Answer:

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2 years ago