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miv72 [106K]
1 year ago
13

consider a situation where the central bank increases the money supply. all other things being equal, if nominal gdp increased b

y $800 billion during a time when velocity was 4, by how much did the central bank increase the money supply?
Business
1 answer:
Yuri [45]1 year ago
5 0

The central bank would expand the money supply by $200 billion if nominal GDP rose by $800 billion during a period when velocity was 4.

nominal spending + velocity of money monetary supply equals nominal GDP monetary supply

The phrase nominal gross domestic product (GDP) refers to GDP calculated using current market prices. The total dollar value of all the products and services produced in a nation is its GDP. Since inflation-related price fluctuations are excluded from nominal GDP, it differs from real GDP.

One way to gauge the strength and prosperity of a country's economy is to look at its gross domestic output. It is the total value of all commodities and services produced over a given time period less the value of all people engaged in that production.

The measurement of economic production known as nominal GDP takes into account current prices. To put it another way, it does not adjust for inflation or the rate of price increases, which can skew the growth estimate. The prices that the items were actually sold for in that year are the values used to calculate the nominal GDP.

Learn more about GDP here

brainly.com/question/15682765

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Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected retur
Kazeer [188]

Answer: 28%

Explanation:

First, we have to make an assumption that the initial wealth is 100, then the weight of the risk free asset will be:

= Amount invested in risk free / Initial wealth

= -100/100

= -1

The weight of the portfolio will be calculated as:

= 1 - weight of risk free asset

= 1-(-1)

= 1 + 1

= 2

Therefore, the expected return on the resulting portfolio will be:

= 2 × 16 + [(-1) × 4]

= 32 - 4

= 28

5 0
3 years ago
Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate
Mice21 [21]

Answer:

The slope of the CML = (13% - 7%)/25% = 0.24

Explanation:

Given that:

expected rate of return of 17%

standard deviation of 27%.

The T-bill rate is 7%.

You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 13% with a standard deviation of 25%.

The slope of the CML is

Slope of the CML = (Expected return of Market - Risk free return)/Standard deviation of market

The slope of the CML = (13% - 7%)/25% = 0.24

= (0.13 - 0.07) /0.25

= 0.24

8 0
4 years ago
If japanese autos surge in popularity in the united states, then this event is most likely to cause the japanese yen to?
romanna [79]

If japanese autos surge in popularity in the united states, then this event is most likely to cause the japanese yen to appreciate and the U.S dollar to depreciate.

<h3>What are the automotive industries in the Japan?</h3>

The automotive industry in Japan is considered as one of the most prominent and largest industries in the world. It is a major pillar of the country's economy.

Some of the major Japanese automotive manufacturers include Toyota, Nissan, Mazda, Subaru, Mitsubishi, Honda, Suzuki, Isuzu, Daihatsu, and Mitsuoka.

Basically, the automotive sector in Japan is the third-largest automotive producing industry in the world.

Learn more about automotive industries in Japan here:

brainly.com/question/23137181

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5 0
2 years ago
Sheffield Corp. has equipment with a carrying amount of $2500000. The expected future net cash flows from the equipment are $254
ololo11 [35]

Answer:

No impairment loss would be reported

Explanation:

The computation is shown below;

Impairment loss = carrying value - recoverable amount

Where,

The recoverable amount would be the higher amount of fair market value and value in use

So the recoverable amount would be $2,545,000

Now the impairment loss is

= $2,500,000 - $2,545,000

= -$45,000

Since the impairment loss comes in negative so no impairment would be recorded

7 0
3 years ago
Can yall plz follow me tik demon alchemist
Fed [463]

Answer:

follow girl in red

Explanation:

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3 years ago
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