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nata0808 [166]
3 years ago
8

At the initial equilibrium value of money and price level, the quantity of money supplied is nowless than the quantity of money

demanded. this contraction in the money supply will people's demand for goods and services. in the long run, since the economy's ability to produce goods and services has not changed, the prices of goods and services will and the value of money will
Business
1 answer:
tiny-mole [99]3 years ago
5 0
The value of money will FALL
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Economic growth is __________.
Mila [183]

<span>Economic growth is an increase amount of services or/ and goods produced by head of population over a period of time</span>

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3 years ago
The Federal Reserve's tools to control the money supply include open-market operations, the discount rate, and interest payments
leva [86]

Answer:

PART-1  

How should each instrument be changed if the Fed wishes to decrease the money supply?

The Fed would deportment open-market sales, increase the discount rate, and raise interest paid on reserves.

PART-2)  

Will the change affect the monetary base and/or the money multiplier?

The money multiplier refers to the capacity of money that financial institute like banks produce with each dollar of funds. Money base is exaggerated by the open-market processes and discount rate. Any alteration in interest expenditures on reserves modifies the money multiplier.

3 0
3 years ago
Classify the following items as issuance of stock, dividends, revenues, or expenses. Then indicate whether each item increases o
Alborosie

Answer:

1. Dividends = It will be classified as <u>dividends.</u>

2. Rent Revenue = It will be classified as <u>revenues.</u>

3. Advertising Expense = It will be classified as an<u> expense.</u>

4. Stock holders pay cash into business = It will be classified as <u>Issuance of stock.</u>

<u></u>

Dividends are the share of revenue distributed to stockholders.

Revenues are income earned by the company.

Expense are the outflow of cash or bank payments for running the business.

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4 0
3 years ago
In year 1, Firm A paid $50,000 cash to purchase a tangible business asset. In year 1 and year 2, it deducted $3,140 and $7,200 d
Tatiana [17]

<u>Solution and Explanation:</u>

a.<u>Compute Firm A’s net cash flow attributable to the asset purchase in each year.Year 2011: </u>

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Net Cash Flow  = ($48,901)

Year 2012:

Cost of Asset   = N/A

Tax Savings (Annual Depreciation x Tax Rate) (\$ 7,200 \times 35 \%)  = $2,520

Net Cash Flow = $2,520

b. <u>Compute Firm A’s adjusted basis in the asset at the end of each year. </u>

INITIAL COST OF ASSET = $50000

DEPRECIATION YEAR 1 = (3140)

ADJUSTED BASIS AT END OF YEAR 1 = $46860

YEAR 2 DEPRECIATION = (7200)

ADJUSTED BASIS AT END OF YEAR 2 = $39660

8 0
3 years ago
On December 1, Petro, Inc., sent Rachel &amp; Rico (R&amp;R) a letter, via overnight delivery, offering to employ R&amp;R to rev
dexar [7]

Answer:

They don't have a contract because, Although they attempted to accept the original offer within the 10 day period, they originally made a counteroffer which means that they both denied the originally offer and made an opposing offer at once. R&R cannot simply change their mind because they found out that another company offered to do it for less. Whether or not they still have a contract is entirely in Petroleum's hands. This was more of an inquiry than a rejection. However, the option contract was not supported by consideration and so revocable at will.

Explanation:

3 0
3 years ago
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