Answer:
V = 3.5 (1 dollar circulates 3.5 times in a year)
In short term – Reduction of aggregate demand and real output
In long term – reduction of wages and increase of real output of firms
Nominal GDP will fall by $20 bilion
Explanation:
Equation of monetisation =
Total money in circulation = Total money demanded/total output
Money Supply * Money Velocity = Price Level * GDP
V = PY/M
Substituting the given values, we get –
V = 336/96
V = 3.5
This indicates 1 dollar circulates 3.5 times in a year
In short term – Reduction of aggregate demand and real output
In long term – reduction of wages and increase of real output of firms
Nominal GDP will fall by $20 bilion
Answer:
Total Check-able deposits to increase by $333.5 billion
Explanation:
If the bank reserves increase by $50 billion, the total check-able deposits will increase by 50 * the credit multiplier.
Credit multiplier is the measure by which an increase in total money supply can be measured relative to an increase in banks' excess reserves.
Credit Multiplier = 1 / reserve ratio
Credit Multiplier = 1 / 0.15 = 6.67
So an increase in excess reserves of 50 billion will have a net effect of 50 * 6.67 = $333.5 billion. This will be the net increase in total check-able deposits or the money supply.
Hope that helps.
Answer:
-equal to zero
Explanation:
As the price for wood is above the demand is willing to pay there is no trade.
Either some of the participants will increase their demand and accept the price of 60 dollars; look for another supplier or look into producing for themselves
Also, Timber could lower the prce of wood so trade occurs.
Answer:
Demand.
Explanation: Because the demand is how much or what they want while supply is how much they can give.
Answer:
May 1
Dr Cash408,000
Cr Bonds Payable 400,000
Cr Interest Expense 8,000
July 1
Dr Interest Expense 12,000
Cr Cash 12,000
Dec 31
Dr Interest Expense 12,000
Cr Interest Payable12,000
Explanation:
May 1,
Dr Cash408,000
Cr Bonds Payable 400,000
Cr Interest Expense 8,000(Accrued Interest = 400,000 x 6% x 4/12)
July 1
Dr Interest Expense 12,000
Cr Cash 12,000(Bond interest expense = 400,000 x 6% x 6/12)
Dec 31
Dr Interest Expense 12,000
Cr Interest Payable12,000
