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Zina [86]
2 years ago
8

Other things the same, an increase in velocity means that a. the rate at which money changes hands falls, so the price level ris

es. b. the rate at which money changes hands falls, so the price level falls. c. the rate at which money changes hands rises, so the price level rises. d. the rate at which money changes hands rises, so the price level falls.
Business
1 answer:
lisov135 [29]2 years ago
7 0

An increase in the velocity of the money refers to a situation when the rate of changing leads to hand rises and ultimately results in an increase in the price level, indicating an inflation.

<h3>What is velocity of money ?</h3>

Velocity of money refers to a method with the help of which the movement of the money in an economy can be measured. When the number of hands changing money increases, there is an economic growth.

So, option C; states that there is an increase in the velocity of money when the rate at which money changes hands rises, the price level also increases.

Learn more about velocity of money here:

brainly.com/question/13914618

#SPJ1

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Exchanged all of the securities for shares of preferred stock, which were not mandatorily redeemable. Market values at the date
ValentinkaMS [17]

Answer:

The full question is as follows <em>"The following accounts were among those reported on Good Corp.'s balance sheet at December 31, year 1: Available-for-sale securities (market value $140,000) $80,000 Preferred stock, $20 par value, 20,000 shares issued and outstanding 400,000 Additional paid-in capital on preferred stock 30,000 Retained earnings 900,000 On January 20, year 2, Good exchanged all of the available-for-sale securities for 5,000 shares of Good's preferred stock. Market values at the date of the exchange were $150,000 for the available-for-sale securities and $30 per share for the preferred stock. The 5,000 shares of preferred stock were retired immediately after the exchange. Prepare the general journal entry, without explanation, to record this event."</em>

Date    General Journal Entry                                  Debit             Credit

            Preferred stock A/c                                   $100,000

             (5000*$20)          

            Add. paid-in capital on preferred stock   $7,500

             (30000 * 1/ 4)          

            Retained earnings                                     $42,500

                  Trading securities A/c                                               $140,000

                  Gain on exchange of securities                                $10,000

8 0
2 years ago
The quantity theory of money is a theory of how A) the money supply is determined. B) interest rates are determined. C) the nomi
meriva

Answer:

C) the nominal value of aggregate income is determined

Explanation:

The quantity theory of money states that nominal aggregate income is determined by money supply. It is assumed that money velocity is constant in the short run and so would not impact nominal aggregate income.

The quantity theory of money is obtained from the equation of exchange which is:

(Money supply × velocity ) = (price × agregrate output)

Dividing both sides by velocity gives,

Money supply = (1/velocity) × ( price × agregrate output)

It is assumed velocity is constant, therefore,

Money supply = k × (price × agregrate output)

I hope my answer helps.

All the best

5 0
3 years ago
You will have $ in 20 years if you set aside $2,000 at 8%. (Use the future value tables from Chapter 5.)
Romashka-Z-Leto [24]

In 20 years you'll have $5,220.

2,000×0.08=160

2,000+(160×20)= 5,220.

4 0
3 years ago
Stewart inc.'s latest eps was $3.50, its book value per share was $22.75, it had 215,000 shares outstanding, and its debt-to-ass
Vikki [24]
<span>80,000 people who traveled to the West in search of riches</span>
4 0
3 years ago
Line graph labeled Business Cycle. Curve rises, falls, rises again, and begins to fall again. Point A marks top of first curve.
CaHeK987 [17]

The part of the business cycle given that shows a period of contraction is <u>Point B. </u>

<h3>Why does point B show contraction?</h3>

When the economy is in a period of contraction, the business cycle would show a fall from the peak to the trough.

The peak is point A and the trough is Point C. Point B shows the fall from A to C which means that Point B must be the contraction.

In conclusion, option B is correct.

Find out more on the business cycle at brainly.com/question/26086110.

5 0
2 years ago
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