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coldgirl [10]
3 years ago
6

Suppose that real GDP equals $10 trillion, nominal GDP equals $20 trillion, and the aggregate price level equals 2.If the veloci

ty of money is 2, the money supply is:
Business
1 answer:
Alina [70]3 years ago
4 0

Answer:

$10 trillion

Explanation:

The quantitative theory of money (QTM) states that MV=PT, but we can say that the value of transactions (T) is equal to the GDP (Y). So, MV=PY

M=Money Supply

V=Velocity of money

P= Price level

Y= Real GDP

We use this formula to find M (We use $10 trillion because it is the real GDP, the nominal is not accurate because it has immerse price level changes which overvalues GDP)

M=PY/V

M=2*$10 trillion/2

M=$ 10 trillion

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Bramble Corp. required production for June is 222000 units. To make one unit of finished product, three pounds of direct materia
Virty [35]

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Explanation:

Giving the following information:

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5 0
2 years ago
Consider an offer to supply 5 paintings per year to an art gallery in Rome for the next five years. The contract is exclusive, m
IceJOKER [234]

Answer:

I will accept the offer if the price per painting is $56,312.41 or higher.

Explanation:

We will calculate the present value of the other option which is, selling our painting as a freelancer.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 315,000.00

time 5

rate 0.2

315000 \times \frac{1-(1+0.2)^{-5} }{0.2} = PV\\

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PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 842,042.83

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3 0
3 years ago
To assign overhead costs to each product, the company:_____.
mina [271]

Answer:

a. multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.

Explanation:

Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

Generally, an activity-based costing uses multiple cost pools such as manufacturing cost or customer services and multiple cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.

Cost pool is simply the amount of money spent by a firm on a particular activity.

Hence, to assign overhead costs to each product, the company multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.

In activity-based costing, the activity rate for an activity cost pool is calculated by using the following formula;

Activity rate = total overhead cost/activity for the activity cost pool.

4 0
2 years ago
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