All categories

3 years ago

According to the Monetarist theory, _____________is a critical causal force that determines the nominal GDP..

Business

1 answer:

aivan3 [116]3 years ago

7 0

Answer:

money supply

Explanation:

Monetarists are a branch of new classical economists that, as the name suggests, believe that money has a very important part to play within an economy.They believe that aggregate expenditures in the economy are influenced by the market rate of interest, and therefore money can affect the level of output in the short run economy.However, they further believe that money influences the long run unemployment in the economy. If monetary policies are used to increase aggregate demand, it is thought that this use of additional money may cause a short term boost in output, but will ultimately lead to inflation in the economy.

So the answer is money supply

You might be interested in

Identify which are goals of monetary policy, and which are not. Goals of monetary policy Not goals of monetary policy Answer Ban

kondor19780726 [428]

Answer:

goals of monetary policy

financial market stability

economic growth

high employment

price stability

Not goals of monetary policy

increasing the size of the financial market

high inflation

improving banks' profits

Dual mandate : high employment

price stability

Explanation:

Monetary policy are policies taken by the central bank of a country to increase or reduce aggregate demand.

There are two types of monetary policy :

Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy

Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy

Goals of monetary policy include

financial market stability
economic growth
high employment
price stability

The dual mandate of the Federal Reserve was birthed as a result of the stagflation of the 1970s. Stagflation is a period of high unemployment and high inflation levels

The dual mandate are : high employment, stable prices and moderate long-term interest rates.

4 0

3 years ago

E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di

brilliants [131]

Answer:

$25.86.

Explanation:

To address this problem we first calculate the present value of all dividend received at time t = 20, then we discount that sum to time t = 0 (now).

The cashflow pattern of this preferred stock is similar to perpetuty.

Stock value at time t = 20 = Dividend/Required rate of return = 20/10.5% = 190.48

Stock value at time t = 0 = (Stock value at time t = 20)/(1 + Required rate of return)^20 = 190.48/(1 + 10.5%)^20 = 25.86.

6 0

3 years ago

Both you and your older brother would like to have $28,000 in 13 in years. Because of your success in this class, you feel that

DerKrebs [107]

Answer:

$693.16

Explanation:

Calculation to determine How much less than your brother will you have to deposit today

Using this formula

FV= Present value × (1 + interest rate)^number of years

Let plug in the formula

First step

$28,000 = Present value × (1 + 0.112)^13

PV= $28,000 ÷ 1.112^13

PV= $28,000 ÷ 3.97522975235

PV= $7,043.618

Second step

$28,000 = Present value × (1 + 0.104)^13

PV= $28,000 ÷ 1.104^13

PV= $28,000 ÷ 3.61907808993

PV= $7,736.777

Now let calculate how much less than your brother will you have to deposit today

Deposit today= $7,736.777-$7,043.618

Deposit today= $693.159

Deposit today=$693.16 (Approximately)

Therefore How much less than your brother will you have to deposit today will be $693.16

5 0

2 years ago

C&s wholesale grocers and if you were cohen and had decided to announce the transition to self-managed teams, what would you

soldi70 [24.7K]

<span>Now we have decided to change our market strategy to one which has taken the form of team management. We have best decided to change from one overall manager to smaller, self managed teams which we believe will be better for the company and the productivity of the team and show overall improvement. We hope that we will have your continued support on this matter.</span>

8 0

3 years ago

Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. she is trying to det

just olya [345]

Yesenia is struggling with the marketing function of supply chain management as it is responsible for the flow of which the falls in the services and goods. It is also responsible in the movement in which it flows. It could be described above as the flow of movement with the schedule and the students are not arranged, making her to struggle with the problem.

6 0

3 years ago

Read 2 more answers