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seraphim [82]
3 years ago
11

According to the dynamic version of the equation of exchange (as presented in the PowerPoint slides for Chapter 12), what will t

he rate of inflation be if real output grows 3% a year while the money supply grows 9% a year, assuming velocity is constant?
Business
1 answer:
kodGreya [7K]3 years ago
4 0

Answer:

6%

Explanation:

Based on the equation of exchange, the inflation rate can be determined by taking the difference between the rate of wage growth and the rate of labor productivity. Therefore, in the question above, the inflation rate is 9% - 3% = 6%. This shows that a fast increase in the wage growth rate with a slow increase in the productivity rate will lead to inflation.

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In any industry, ethical behavior is the responsibility of ______. a. each company b. each employee c. each supervisor d. each c
Blababa [14]

Answer:

B each employee

Explanation:

7 0
2 years ago
Bird Corp.'s trademark was licensed to Brian Co. for royalties of 15% of the sales of the trademarked items. Royalties are payab
Romashka-Z-Leto [24]

Answer:

a. $13,000

Explanation:

Calculation for what royalty revenue should be

First step is to find the estimated amount for the second half of the year

Royalties for the second half =

15%*$30,000

Royalties for the second half= $4,500

Now let Compute for the total royalty revenue

Total royalty revenue for 20X5=$8,500+$4,500

Total royalty revenue for 20X5=$13,000

Therefore the royalty revenue should be $13,000

6 0
3 years ago
If demand decreases and supply increases, the direction of change in the equilibrium quantity is un-predictable unless the relat
Elodia [21]

Answer:

The correct answer is option A.

Explanation:

A decrease in the demand for a product will cause the demand curve to shift to the left. At the same time, an increase in the supply of the product will cause the supply curve to shift to the right.  

In such a situation the change in the equilibrium quantity cannot be predicted. It depends on the magnitude of change in demand and supply.  

If the proportionate decrease in demand is more than the increase in the supply of the product, the equilibrium quantity will decrease.

If the increase in supply is more than the decrease in demand, the equilibrium quantity will increase.

If the proportionate increase in supply is equal to a proportionate decrease in demand, the equilibrium quantity will remain the same.

5 0
4 years ago
Consider a firm with a contract to sell an asset for $154,000 five years from now. The asset costs $90,000 to produce today. Giv
horsena [70]

Answer:

the firm will have a loss of 6.414,97‬

Break-even rate = 11.34%

Explanation:

We calcualte the present value of a lump sum to know the present sale value:

\frac{Nominal}{(1 + rate)^{time} } = PV  

Nominal:  154,000

time               5 years

rate               0.13

\frac{154000}{(1 + 0.13)^{5} } = PV  

PV   83,585.03

the current sale price        83,585.03

given a cost of               <u>   (90,000)      </u>

the firm will have a loss of 6.414,97‬

To break event the present value should be 90,000:

\frac{154000}{(1 + r)^{5} } = 90,000

\sqrt{5}{\frac{154000}{90,000}} -= (1 + r)  

rate = 0.113411345 = 11.34%

6 0
4 years ago
Few people will use your business’ Internet site to purchase products if they feel it is ______.
Pie
The correct answer is A. Not secure.
3 0
3 years ago
Read 2 more answers
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