Answer:
The correct answer is: A
Explanation:
The velocity of money is a measurement of the rate at which money is exchanged in an economy. It is the number of times that money moves from one entity to another. The velocity of money is important for measuring the rate at which money in circulation is being used for purchasing goods and services.
Economies that exhibit a higher velocity of money relative to others tend to be more developed. The velocity of money is also known to fluctuate with business cycles.
Velocity of money formula:
Velocity of Money = GDP / Money Supply
According to the<em> </em><em>quantity theory of mone</em><em>y</em>, inflation occurs because there is too much money available to buy the same amount of goods and services produced in the economy. It relates the general price level, the total goods and services produced in a given period, the total money supply and the speed (velocity) at which money circulates in the economy in the following equation:
MV = PQ
M stands for money.
V stands for the velocity of money (or the rate at which people spend money).
P stands for the general price level.
Q stands for the quantity of goods and services produced.
If for some reason the money velocity declines rapidly, it can offset the increase in money supply and even lead to deflation instead of inflation.
When more transactions are being made throughout the economy, velocity increases and the economy is likely to expand. <u>The opposite is also true: Money velocity decreases when fewer transactions are being made; therefore the economy is likely to shrink.</u>
A is the answer. i hope this helps!
Economics is the branch of knowledge concerned with the production, consumption, and transfer of wealth.
Economics focuses on the behaviour and interactions of economic agents<span> and how </span>economies<span> work</span>
Answer:
The correct answer is C
Explanation:
The formula for computing the ending inventory through using the average cost is as:
Ending Inventory = Beginning Inventory + Purchases - COGS (Cost of goods sold)
where
Beginning inventory = Units × Price
= 10 × $50
= $500
Purchases = First Purchase + Second Purchase + Third Purchases
Purchases = Units × Price + Units × Price + Units × Price
Purchases = 17 × $52 + 27 × $53 + 19 × $55
Purchases = $884 + $1,431 + $1,045
Purchases = $3,360
COGS = Units × Price
COGS = 26 × Price
COGS = 26 × $53
COGS = $1,378
Price is computed as:
Price = $50 + $52 + $53 + $55 / 4
Price = $52.5
Putting the values above:
Ending Inventory = $500 + $3,360 - $1,378
Ending Inventory = $2,485
Answer:
Results are below.
Explanation:
To determine whether the project should be accepted or not, we need to calculate the net present value. <u>If the NPV is positive, the project should be accepted.</u>
<u>To calculate the NPV, we will use the following formula:</u>
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 9,800/1.0975= 8,929.38
Cf2= 16,400/1.0975^2= 13,615.54
Cf3= 21,700/1.0975^3= 16,415.20
Total= $38,960.12
NPV= -38,700 + 38,960.12
NPV= 260.12
<u>The project is profitable. </u>
