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2 years ago

Milton Friedman helped to establish the economic theory of monetarism. Which statement best describes the idea of monetarism

Business

1 answer:

Ann [662]2 years ago

7 0

Monetary policy is the best way to influence economic growth.

Appeared as a leader of the Chicago school of financial economics, Friedman burdened the importance of the quantity of cash as a device of government coverage and a determinant of enterprise cycles and inflation. His monetarism principle proposed that cash delivery modifications have immediate and long-term effects.

Milton Friedman became a U.S. economist and Nobel laureate known as the most influential propose of loose-marketplace capitalism and monetarism in the 20th century.

The monetarist principle is an monetary concept that contends that changes in cash deliver are the maximum good sized determinants of the charge of monetary increase and the behavior of the commercial enterprise cycle.

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A portfolio is comprised of two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.21. Stock B has a beta of .95

Lapatulllka [165]

If a portfolio is comprised of two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.21. The portfolio beta is 1.119.

<h3>Portfolio beta</h3>

Using this formula

Portfolio beta=(Stock A portfolio×beta)+[(1-Stock A porfolio)× Stock B beta]

Let plug in the formula

βp = (.65 × 1.21) + [(1 - .65) × .95]

βp = (.7865) + [.35 × .95]

βp= .7865+ .3325

βp = 1.119

Therefore the portfolio beta is 1.119.

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2 years ago

Krasel Corp. exchanges equipment in a transaction that has commercial substance. The original cost of the asset surrendered was

devlian [24]

Answer:

All options are applicable

Explanation:

Upon the exchange of the asset, the cost of the old asset needs to be removed from the asset account by crediting the old asset account with $90,000

On the other hand, the market value of the new asset needs to be debited to new asset account i.e$50,000 and also the accumulated depreciation must debited to accumulated depreciation account.

All in all, the difference between the credit and the debit entries is balancing credit as shown below

Dr New asset $50,000

Dr Accumulated depreciation $70,000

Cr Old asset $90,000

Cr gain on asset exchange(bal figure) $30,000

3 0

3 years ago

Read 2 more answers

Lucy has just started her own consulting company. Every year a local literacy organization holds a fundraiser. Lucy has agreed t

kkurt [141]

Advertising I believe

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3 years ago

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roberta’s brokerage account contains 10 stocks. she has held five of those stocks for over two years, and she purchased the othe

tino4ka555 [31]

She should sell one of the stocks that she's held for over two years because long term gains receive preferential tax treatment

For the point of taxation, short term capital gains are treated as ordinary income , where as long term capital gains have preferential tax rates of 0%,15% or 20%, which depends upon the income level. Also effective tax rates on the long term capital gain is lesser than the short term capital gain.

With the top incomes paying about half the taxes on capital income as earned income, this preferential rate is one of the most expensive in the tax law and is regarded as a tax expenditure.

A capital gain is profit from the sale of an asset, like a business, stock, piece of art, or parcel of land.

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5 0

2 years ago

Under the terms of his salary agreement, president Steve Walters has an option of receiving either an immediate bonus of $71,500

Semenov [28]

Answer: Walters should accept the immediate bonus of $71,500. See explanation below.

Explanation: In order to determine the better form of settlement, we will have to calculate the present value of $91,000 payable in 10 years, at a 4% interest rate and compare the answer with $71,500.

The formula for calculating present value (PV) is given as:

PV = C/(1 + r)^n

Where;

C = amount of money payable ($91,000)

r = percentage interest rate (4%)

n = number of years (10 years)

PV = 91,000/(1 + 0.04)^10

PV = 91,000/(1.04)^10

PV = 91,000/1.48

PV = 61,486.486

Therefore, the present value of $91,000 payable in 10 years at a 4% interest rate is approximately $61,486.50. This value is lesser than $71,500.

Hence, the form of settlement that Walters should accept is an immediate bonus of $71,500.

3 0

3 years ago