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IRISSAK [1]
3 years ago
14

If the economy is at full employment and the Federal Reserve undertakes a policy of increasing the money supply at a constant ra

te of 6% while the production of goods and services is at 2% what would you expect to happen?
a. interest rates will go down and employment will increase

b. the government budget will run a surplus

c. inflation

d. the government budget will run a deficit and the Federal Reserve will monetize the debt.
Business
2 answers:
Korvikt [17]3 years ago
7 0
Think through this one:
--The bottom two answers concern budget deficits or surpluses, but the question doesn't tell you anything about tax revenue vs. government spending. So neither of those answers applies.
--The first answer is impossible because the economy is already at full employment, so employment can't increase
--Inflation is the answer. Increasing the money supply by 6% while output is increasing by only 2% means that prices will rise: the money supply is increasing faster than output.
Anastaziya [24]3 years ago
3 0
The answer to this would be Inflation. Or C as the answer.
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In an international transaction involving a bank as a third party, the exporter ships the product after:
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2 years ago
Imagine you have $30 to spend. You are thinking of buying new soccer shoes because yours
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Dima020 [189]

Answer:

Gunst should produce 500 Bio-mutant games:

  • total contribution margin = $71 x 500 = $35,500

Explanation:

                                   Android          Bio-mutant          Cyclops

selling price                  $100                 $107                   $125

labor                               $48                  $24                     $60

direct materials               $9                    $8                       $16

variable overhead          $7                     $4                        $9

contribution margin      $36                   $71                      $40

labor hours                        4                       2                          5

Bio-mutant generates by far the largest contribution margin and requires the least direct labor hours.

Gunst should produce 500 Bio-mutant games:

  • total revenue = $107 x 500 = $53,500
  • total contribution margin = $71 x 500 = $35,500

If it produces 250 Android games its total contribution margin will = $9,000

If it produces 200 Cyclops games its total contribution margin will = $8,000

7 0
3 years ago
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