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mojhsa [17]
1 year ago
11

According to ___________________, 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
Business
1 answer:
IceJOKER [234]1 year ago
5 0

The quantity theory of money predicts that the inflation rate will be 4% if the money supply increases by 6%, real GDP increases by 2%, and the velocity of money remains constant.

All the money and other liquid assets present in an economy on the measurement date are referred to as the money supply. The money supply roughly consists of deposits that can be utilized virtually as easily as cash in addition to actual currency.

Governments issue coin and paper money supply through a mix of national treasuries and central banks. By dictating to banks what reserves they must maintain, how to offer credit, and other financial issues, bank regulators have an impact on the amount of money that is available to the general people.

By regulating interest rates and altering the amount of money flowing through the economy, economists study the money supply and create policies based on it. Because the money supply may have an impact on price levels, inflation, and the business cycle, both the public and private sectors conduct analyses. The most significant determining factor in the money supply in the United States is Federal Reserve policy. The term "money stock" also applies to the money supply.

Learn more about money supply here

brainly.com/question/24249291

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On November 30, Year 1, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of S
zepelin [54]

Answer:

$275,000

Explanation:

Goodwill in business combination arises when the price paid in acquiring a business exceeds the fair value of the acquired business net assets . The fair value is used rather than the carrying amount to ensure fairness and an unbiased result

<u>Workings</u>

Purchase consideration = 250,000*15 =3,750,000

Percentage acquired = 100%

Fair value of net asset = 3,000,000+400,000+75,000= 3,475,000

Goodwill = 3,750,000=3,475,000 =275,000

6 0
3 years ago
The demand for subassembly S is 100 units in week 7. Each unit of S requires 1 unit of T and 2 units of U. Each unit of T requir
Nady [450]

Answer

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Explanation  

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3 0
3 years ago
January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 30,000 of its common shares at $7 each. T
Anton [14]

Answer:

169,000

Explanation:

Calculation to determine what The number of shares to be used in computing diluted earnings per share for the quarter is:

First step is to calculate the amount assumed to be exercised

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Exercised amount= 14,000

Second step is to calculate the Net

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Now let calculate The number of shares to be used in computing diluted earnings per share

Using this formula

Number of shares=Outstanding+Net

Let plug in the formula

Number of shares=153,000 +16,000

Number of shares= 169,000

*diluted eps=$28,000 /169,000

Therefore The number of shares to be used in computing diluted earnings per share for the quarter is: 169,000

8 0
2 years ago
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Papessa [141]
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3 years ago
On January 1, 2017, Hannigan Company issued bonds with a face value of $600,000. The bonds carry a stated interest of 7% payable
mart [117]

Answer:

Explanation:

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Cash A/c Dr $582,000            ($600,000 × 0.97)

Discount on Bonds Payable A/c Dr $18,000

       To Bonds payable A/c    $600,000

(Being the issuance of the bond is recorded and the remaining balance is debited to the discount on bond payable account)

Cash A/c Dr $612,000            ($600,000 × 1.02)

       To Bonds payable A/c    $600,000

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(Being the issuance of the bond is recorded and the remaining balance is credited to the premium on bond payable account)

6 0
3 years ago
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