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jasenka [17]
2 years ago
15

Changes in the quantity of money lead to real changes in the economy. if this is the case, why would the central bank ever stop

increasing the money supply?
Business
1 answer:
vodka [1.7K]2 years ago
8 0

Changes in the quantity of money lead to real changes in the economy. if this is the case, why would the central bank ever stop increasing the money supply because Although there is a short-run incentive to increase the money supply, these effects wear off in the long run as prices adjust and then drive down the value of money.

Quantity or amount is a property that can exist as a multitude or magnitude, which illustrates discontinuity and continuity. Quantity or amount is a property that can exist as a multitude or magnitude, which illustrates discontinuity and continuity. Quantities can be compared in terms of "more", "less", or "equal", or by assigning a numerical value multiple of a unit of measurement.

Quantity, much like number, can be used for singular or plural nouns that you can count or measure. The main difference is that it's best to use quantity when you're talking about an inanimate object.

learn more about Quantity, here

brainly.com/question/251701

#SPJ4

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Fred Flintlock wants to earn a total of 10% on his investments. He recently purchased shares of ABC stock at a price of $20 a sh
svlad2 [7]

Answer:

Option (C) is correct.

Explanation:

Return on the stock = (Dividend ÷ Investment) + (capital gain ÷ investment )

= (Dividend ÷ Investment) + (Final price of the stock - initial price of the stock) ÷ Investment

10 = (1 ÷ 20) × 100 + ((final price - 20) ÷ 20) × 100

10 = 5 + 5 × ( final price - 20)

Final price = 21

Therefore, the stock price should increase by [(21 - 20) ÷ 20] × 100

                                                                            = 5%

6 0
4 years ago
42-43. For the following independent situation for an individual taxpayer. Item Use (Personal or Business) Business Basis $25,00
ch4aika [34]

Answer:

$17,000

Explanation:

Fair market value before casualty is $17,000 while Fair market value after casualty is none. The starting point for the calculation of loss deduction will be based on the fair market value before casualty which is $17,000.

4 0
3 years ago
Listed below are a few events and transactions of Kodax Company.
oksian1 [2.3K]

Answer:

Year 1

Jan. 2 Purchased 82,000 shares of Grecco Co. common stock for $546,000 cash. Grecco has 246,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax.

Dr Investment in Grecco Co. 546,000

    Cr Cash 546,000

Sept. 1 Grecco declared and paid a cash dividend of $1.30 per share.

Dr Cash 106,600

     Cr Investment in Grecco Co. 106,600

Dec. 31 Grecco announced that net income for the year is $510,900.

Dr Investment in Grecco Co. 170,300

     Cr Revenue from investment in Grecco Co. 170,300

Year 2

June 1 Grecco declared and paid a cash dividend of $3.20 per share.

Dr Cash 262,400

     Cr Investment in Grecco Co. 262,400

Dec. 31 Grecco announced that net income for the year is $740,400.

Dr Investment in Grecco Co. 246,800

     Cr Revenue from investment in Grecco Co. 246,800

Dec. 31 Kodax sold 13,000 shares of Grecco for $99,500 cash.

each share is worth = $7.2695

Dr Cash 99,500

     Cr Investment in Grecco Co. 94,504

    Cr Gain from investment in Grecco Co. 4,996

7 0
3 years ago
The most important fundamental component of an entity's internal control is:
rosijanka [135]

Answer:

b) People who operate and function within the control system.

Explanation:

Internal controls are the process and mechanisms that an organization puts in place to ensure the integrity of its accounting and financial information. Internal control helps a business achieve operational efficiency and effectiveness. It ensures that a company financial reporting complies with the relevant laws, policies, and regulations.

The people working in internal control determines whether the mechanisms will succeed or fail.  Employees assigned in internal control must be of high integrity and be able to discharge their duties without fear or favor.  Internal control protects company resources from theft, wastage, or misuse. For internal control to achieve its purpose, the Individuals in that department must not comprise in any situation.

6 0
3 years ago
American​ Exploration, Inc., a natural gas​ producer, is trying to decide whether to revise its target capital structure. Curren
Marat540 [252]

Answer:

a) 9.00 %

b) 7.80 %

c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough

d) 9.00  %

e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs

Explanation:

a)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.5

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight = 0.5

WACC = 0.12(0.5) + 0.06(0.5)

WACC 9.00000%

c)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.12(0.3) + 0.06(0.7)

WACC 7.80000%

d)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

<em>Ke 0.16</em>

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.16(0.3) + 0.06(0.7)

WACC 9.00000%

3 0
3 years ago
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