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1 year ago

The expansion of the money supply at a rate that exceeds the increase in goods and services will likely result in ___________.

1 answer:

6 0

The expansion of the money supply at a rate that exceeds the increase in goods and services will likely result in increased inflation.

When an economy is slowing down and the government predicts a recession, many times e.g. in the recent case of the United States government, the Fed may print more money to increase government spending.

The government might spend this money on projects such as new roads, bridges, etc in a bid to increase the supply of money and wealth among people.

The idea is when people have more money, they will spend more and the economy can avoid a recession. However, the problems occur when the government is spending too much but there is not enough demand in the market.

This starts to cause inflation, as prices rise when there is a lot of money in the economy but not enough demand. This can lead to a double-edge problem.

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Note: This question is incomplete and the Multiple choice options were missing which are as follows:

Multiple Choice:

Increased inflation

Lower GDP
expanding economy

Interest rate declines

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A written promise to pay certain sum of money to another person or company is a

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Promissory Notes Receivable

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2 years ago

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Say's law says that

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Answer:

The answer is : People consume the goods they produce

Explanation:

Say's law could also be refereed to as Say's law of markets in Classical economics states that supply itself creates its own demand which is equivalent to people consuming what they produce.

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3 years ago

R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is

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Answer:

a. 300

d. 200

Explanation:

EOQ = $\sqrt{(2 * Annual demand * ordering cost) / holding cost } \\$

2 * 7500 * 30 / 0.5

EOQ = 948 units

When price is $48 per unit

EOQ = 968 units

Total cost = Holding cost + ordering cost + purchase cost

When the order is for 500 price is $48

Total cost = $2,400 + $30 + $24,000 = $26,430

When the order is for 300 price is $50

Total cost = $1,500 + $30 + $15,000 = $16,530

When the order is for 306 price is $50

Total cost = $1,530 + $30 + $15,300 = $16,860

When the order is for 200 price is $50

Total cost = $1,000 + $30 + $10,000 = $11,030

The best two possible order quantities are 200 and 300 which results in minimum total cost.

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2 years ago

Boron company has net sales of $60,000; beginning inventory of $7,000; purchases of $35,000 and ending inventory of $5,000. The

SCORPION-xisa [38]

Net sales for the Boron Company were $60,000, with $7,000 in beginning inventory, $35,000 in purchasing, and $5,000 in ending inventory. $37,000 is the cost of the sold goods.

Cost of Goods Sold is calculated as Beginning Inventory minus Purchases minus Ending Inventory.

$7000+$35000-$5000=$37000

The direct costs of producing the products that a business sells are referred to as its cost of goods sold (COGS). The cost of the labor and materials directly employed to make the good are also included in this sum. It doesn't include indirect expenditures like those associated with the sales staff and distribution. As a company's gross profit is calculated by subtracting COGS from its revenues, COGS is a crucial financial statement statistic.

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6 months ago

Vande Velde Company made three investments during 2017. Where will Vande Velde report these investments in the fair value hierar

Debora [2.8K]

Answer:

a. level 3

b.level 1

c. level 2

Explanation:

Vande Velde Company made three investments during 2017. Where will Vande Velde report these investments in the fair value hierarchy?1. It purchased 1,000 shares of Sastre Company, a start-up company. Vande Velde made the investment based on valuation estimates from an internally developed model.2. It purchased 2,000 shares of GE stock, which trades on the NYSE. 3. It invested $10,000 in local development authority bonds. Although these bonds do not trade on an active market, their value closely tracks movements in U.S. Treasury bond.

The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), and the lowest priority to unobservable inputs (Level 3) while Level 2 assets are financial assets and liabilities that are neither easy or overly complex to value.Going by the explanation the investment will be given hierarchy 3, 2,1

if Van verde purchased shares on the New York stock Exchange , then the percentage in price over time is more than the other two options . In stock purchase, investors can realised more profit on their stocks than bond which can give like 10-15% on the initial cash outlay. The only caveat is that Stocks is a little bit risky and could be volatile owing to price fluctuations ,and the forces of demand and supply.

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2 years ago