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Bumek [7]
1 year ago
8

According to_____if the money supply grows at 6%, real GDP grows at 2%, and the velocity of money is constant, then the inflatio

n rate will be approximately_____.
Business
1 answer:
stepan [7]1 year ago
6 0

According to <u>the </u><u>quantity theory of money</u>, if the money supply grows at 6%, real GDP grows at 2%, and the velocity of money is constant, then the inflation rate will be approximately <u>4%</u>.

In monetary economics, the quantity theory of money is one of the directions of the Western financial notion that emerged in the sixteenth-seventeenth centuries. The Quantity Theory of Money states that the overall fee level of goods and services is without delay proportional to the amount of money in circulation, or money deliver.

The quantity theory of money states that money delivery and charge degree in an economic system is in direct proportion to one another. While there's a trade inside the supply of cash, there's a proportional exchange within the fee level and vice-versa.

Inflation is the rate of the boom in fees over a given time frame. Inflation is generally a wide degree, such as the general increase in charges or the boom in the cost of living in a country.

Learn more about economics here brainly.com/question/17996535

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The budget for making the movie The Twilight Saga: New Moon was one-fifth the budget for making Harry Potter: The Half Blood Pri
sergey [27]

Answer:

The budget for The Twilight Saga: New Moon = $50 million

Explanation:

Let the budget for Twilight Saga: New Moon = T

Let the budget for Harry Potter: The Half Blood Prince = H

We are given the following:

T=\frac{1}{5}H (The budget for Twilight Saga is one-fifth the budget for Harry Potter)

Cross multiplying the equation

5T = H  - - - - (1)

H + T = 300,000,000 - - - - - (2) (Together the budgets totaled $300 million)

Next, let us substitute the value of H in equation (2) with equation (1)

(5T) + T = 300,000,000

6T = 300,000,000

T = \frac{300,000,000}{6} \\T = 50,000,000

Therefore, the budget for The Twilight Saga: New moon = $50,000,000

And the budget for Harry Potter: The Half Blood Prince = $250,000,000

8 0
2 years ago
Poorly timed discretionary macroeconomic policy can do more harm than good. getting the timing right with fiscal policy is gener
Bad White [126]

Poorly timed discretionary macroeconomic policy can do more harm than good. getting the timing right with fiscal policy is generally <u>more difficult than with monetary policy</u>.

The macroeconomic policy aims to provide stable financial surrounding that is conducive to fostering robust and sustainable financial growth. the key pillars of macroeconomic coverage are economic policy, financial coverage, and change charge coverage. Macroeconomic policy is concerned with the operation of the economic system as an entire.

The 3 essential forms of government macroeconomic policy are economic policy, economic coverage, and supply-facet regulations. different government guidelines along with business, opposition, and environmental regulations. Rate controls, exercised by the government, additionally have an effect on private region manufacturers.

The microeconomic policy is a motion taken via the government to improve resource allocation among companies and industries if you want to maximize output from scarce assets. Macroeconomic coverage is crucial to the authorities' long-time coverage of reducing constraints on growth inclusive of inflation even as improving LT increases.

Learn  more about macroeconomic policy here brainly.com/question/3405421

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8 0
1 year ago
Assuming that the physical output (i.e., the actual quantity of all final goods and services) of all final goods and services re
joja [24]

Answer:

a) true

Explanation:

A rise in the general price level is called inflation and it affects the nominal value of the company's output. E.g. you sell pants and last year they sold at $10 and now since inflation rate is 10%, they sell at $11. But inflation only affects nominal values, it doesn't affect real values which are calculated using a base price of a certain year X, times the quantity sold. Following the example, your real output would not be $11 per pair of pants, instead it would still remain at $10 since the inflation is discounted.

5 0
2 years ago
Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per
IgorC [24]

Answer:

Economic profit will be $40

So option (d) will be correct option

Explanation:

We have given number of units produced = 20 units

Price of per unit = $10 per unit

So revenue = 20×$10 = $200

Revenue :20 units * $10 = 200

Fixed cost is given $100

Variable cost: 20 units ×$3 = 60

So total cost= Fixed cost + Variable cost = 100 + 60 =$160

So economic profit = Revenue - Total cost = 200 - 160 = $40

So option (d) will be correct answer

6 0
2 years ago
Represents ownership, or equity, in a corporation
Brilliant_brown [7]

Answer:

Common Stock

Explanation:

common stock is a security that represents ownership in a corporation. Holders of common stock elect the board of directors and vote on corporate policies. this form of equity ownership typically yields higher rates of return long term.

5 0
3 years ago
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