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azamat
3 years ago
10

For example, an increase in the money supply, a variable, will cause the price level, a variable, to increase but will have no l

ong-run effect on the quantity of goods and services the economy can produce, a variable. The distinction between real variables and nominal variables is known as:
Business
1 answer:
Inga [223]3 years ago
7 0

Answer:

nominal, real, & the classical dichotomy

Explanation:

A nominal variable is a value whose values are non-numeric for example gender. It is calculated based on the current – year prices.

In other words, nominal value is calculated in monetary terms, whereas real value is measured on the basis of goods or services

A real variable is a variable whose values are numeric. It is measured based on the currency of the base year.

The distinction between real variables and nominal variables is known as <u>nominal, real, & the classical dichotomy</u>.

The Classical Dichotomy is based on the assumption that states that in the long run, the nominal economy and the real economy are completely separated from each other. In the long run, nominal prices have no impacts on real variables.

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Red Co. acquired 100% of Green, Inc. on January 1, 2012. On that date, Green had inventory with a book value of $42,000 and a fa
pav-90 [236]

Answer:

D) $15,000.

Explanation:

190,000 excess of value Building  amortized over 10 years:   19,000

 70,000 lesser value on Equipment amortized over 5 years: 14,000

We will amortize the building at a rate of 19,000 dollar per year

and we will amortize the equipment at 14,000 per year

the inventory as still is in the company's possesion will also need to be adjsuted

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3 years ago
Cullumber Corporation purchased 37000 shares of common stock of the Sherman Corporation for $52 per share on January 2, 2020. Sh
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Answer:

Revenue from investment = 229,400

Explanation:

Given:

Purchased shares = 37,000

Value per share = $52

Sherman Corporation total shares = 100,000

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Net income = $620000

Find:

Revenue from investment = ?

Computation:

Revenue from investment = Net income (Purchased shares / Sherman Corporation total shares)

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7 0
3 years ago
Borghia Pharmaceuticals has $1 million allocated for capital expenditures. a. Which of the following projects should the company
balu736 [363]

Answer:

Please refer below the answer in detail

Explanation:

a)

With a limited budget, the firm will first pursue projects with the highest return, and the allocate the remaining capital to the project with the second highest return, and so on until all capital is fully allocated. Based on the information, Project 6 has the highest return, followed by 1 and 3. These three projects together will cost:

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After those three projects, the firm will have $100,000 left. The best out of remaining project is 7, but it costs 400,000, which the firm cannot afford. The best affordable project is 4, which offers a return of 12.1%. Hence, the firm should spend the remaining 100,000 on project 4.

b)

The budget limit constraints the firm to give up project 7, which offers a NPV of $48,000. The firm is forced to choose project 4, which has a NPV of $14,000.

Thus the lost in market value of the firm = 48,000 - 14,000 = $34,000.

4 0
3 years ago
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