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3 years ago

What are the six characteristics of money? explain how the u.s. dollar has those six characteristics?

1 answer:

5 0

1. durability- objects used as money must withstand physical and tear
2. portability- people need to be able to take money with them as they go about their business
3.divisibility-to be useful, money must be easily divided into into smaller denominations, or units of value
4.uniformity- any two units of money must be uniform or the same in the terms of what they will buy.
5.limited supply- money must be available only in limited quantities
6.acceptability- Everyone must be able to exchange the money for goods and services

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Consider a hypothetical economy where there are no taxes and no international trade. households spend $0.80 of each additional d

KengaRu [80]

The formula for the multiplier is 1 / (1 - MPC), whereby MPC represents the marginal propensity to consume. Applying the formula to our case, we get: M (multiplier) = 1/(1-0.8) = 1/0.2 = 5. The multiplier in this economy is therefore 5.

7 0

2 years ago

What would be the net effect of the government increasing the taxes by $10 billion at the same time that it decreased spending b

vazorg [7]

Answer:

Explanation:

4 0

2 years ago

In 2010, the MoreForLess Company had revenues of $2,000,000 while costs were $1,500,000. In 2011, MoreForLess will be introducin

Harlamova29_29 [7]

Answer:

Differential profit Profit = $40,000

Explanation:

The differential operating profit is the difference between the operating profit before the introduction of the product and after the introduction of the new product

Profit = Revenue - costs

Profit before the introduction of the new product

= 2,000,000 - 1,500,000 = 500,000

Profit after the introduction of the new product

New revenue = (2,000,000 + 200,000) = 2,200,000

Cumulative cost = 1,500,000 + 160,000 = 1,660,000

Profit = 2,200,000 - 1,660,000 = 540000

Differential profit Profit = 540,000 - 500,000= $40,000

4 0

3 years ago

Based upon the following data, which of the following mutually exclusive projects should you choose if your required return is 1

scoray [572]

Answer:

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Investment A

Cash flow in year 0 = -$150

Cash flow in year 1 = $80

Cash flow in year 2 = $40

Cash flow in year 3 = $40

Cash flow in year 4 = $30

I = 10%

NPV = 6.33

Investment A

Cash flow in year 0 = -$150

Cash flow in year 1 = $40

Cash flow in year 2 = $50

Cash flow in year 3 = $60

Cash flow in year 4 = $55

I = 10%

NPV = 10.33

Project B has a higher NPV and it should be chosen

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

7 0

3 years ago

Suppose Nicholas owns a business making Christmas tree ornaments. Currently, he makes 300 ornaments a month. At this level of pr

Fudgin [204]

Solution and Explanation:

1. MC = Cost of raw material + Cost of time

MC = 5 plus (10 divide by 2)

MC = $10

2. TFC = $300

Q = 300 , AFC = TFC/Q = 300 divide by 300 = $1

3. His profit maximizing output would be higher

Reason: P = MR = $15 , MC = $10

Since MR > MC, and at the profit maximizing point MR = MC, it is better for Nicholas to increase his output.

4. His profit maximizing output would be higher

Reason: P = MR = $15 , MC = $4 + $5 = $9

Since MR > MC, and at the profit maximizing point MR = MC, it is better for Nicholas to increase his output.

3 0

3 years ago