1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mama L [17]
3 years ago
14

Suppose monetary neutrality holds and velocity is constant. A 5 percent increase in the money supply increases the price level b

y less than 5 percent. increases the price level by more than 5 percent. increases the price level by 5 percent. does not change the price level.
Business
1 answer:
Alex73 [517]3 years ago
4 0

Answer:  Increases the price level by 5 percent

Explanation:

Monetary Neutrality is a theory in Economics that posits that when there is a change in money supply in an economy, the only variables affected are the nominal ones like price level and wages and Real variables like GDP and employment are not affected.

It holds that when there is an increase in money supply, there is an equivalent increase in Price level as well because the value of money has fallen by the rate of the monetary increase. The Price level rising at the same rate is to compensate.

A 5 percent increase in the money supply will therefore increase the price level by 5 percent.

You might be interested in
Consider a simple process where work flows from Activity A to Activity B to Activity C to Activity D. Activity A takes 3 minutes
Ludmilka [50]

Answer:

The correct answer is the option B: Activity B.

Explanation:

First of all, the term <em>''bottleneck''</em> in the management area refers to the activity or process in a chain of processes that its limited capacity reduces the capacity of the chain in its whole.

Once said that, in the case presented, where there are four workers and two of them have to do two differents tasks then the activity consider the bottleneck of the process will be the one in where one person does an activity after another and that reason makes that person delates more in working. That is the case of the activity B, where Aaron has to work again after the first activity and that takes him and Betty five minutes full, while in the other case where Betty works with David they only take four minutes, so therefore that the activity B is the bottleneck of the process.

6 0
3 years ago
If you keep buying despite a price increase, your demand is
rjkz [21]
D. Inelastic. 

Hope this helps!

:3
3 0
3 years ago
Elasticity is the percentage change in quantity divided by the percentage change in _____.
Snezhnost [94]

Answer:

The price.

Explanation:

Elasticity is the percentage change in quantity divided by the percentage change in price.

6 0
3 years ago
A process cost system would be appropriate for a a.jet airplane builder b.custom cabinet builder c.catering business d.natural g
lozanna [386]

Answer:

D. Natural gas refinery

Explanation:

Processing cost system is when identically units are mass produced. It involves assigning materials, factory labour, overhead cost and so on in an effort to value finished goods inventory. Process cost involves allocation of cost for different set in each process. It helps in determining total cost of producing a unit of commodity. It is best suited for the natural gas refinery because of the various steps involved in the processing and manufacturing of products as cost can be identified and allocated for each steps and also because what is produced are identical units which are mass produced.

3 0
3 years ago
karl opens a savings account with 2500.Hedeposits1500 every year into the account that has a 0.75% interest rate, compounded mon
Anastasy [175]

Answer:

28707.80 is the account balance after 10 years.

Explanation:

In his question we have two parts of the problem  the first one is a single deposit of 2500 in which we will find its future value after 10 years by using the future value formula which is Fv = Pv(1+i)^n , where

Fv is the future value after 10 years of saving the amount which we are calculating.

Pv is the present value initial investment of 2500

i is the annual interest rate which will be 0.75% x 12 = 9% as we are given a rate which is for monthly compounding.

n is the number of years the 2500 is saved up for.

Then we substitute these values to the above mentioned formula:

Fv = 2500(1 +9%)^10

Fv = 5918.41

now we will solve the second part of the question which involves 1500 deposited every year which this is an annuity part of the question where periodic payments are made constantly over 10 years for a certain future amount. which the formula is Fv = C[((1+i)^n -1)/i] , where

Fv is the future value of saving 1500 per year for 10 years

C is the periodic saving which is 1500

i is the annual interest rate of 9% as the 1500 is saved per year

n is the number of periods the 1500 is deposited for which is 10 years'

now we substitute to the above mentioned formula to find the future value:

Fv =  1500[((1 + 9%)^10 -1)/9%]

Fv =22789.39 .

now we will combine both future values to find the account balance after 10 years which will be 22789.39+ 5918.41 = 28707.80 rounded off to two decimal places.

5 0
3 years ago
Other questions:
  • A computer manufacturer sells laptops to retail stores for $450 each. If the manufacturer pays $200 for all of the components in
    8·1 answer
  • "formalization refers to the extent to which procedures and rules determine the jobs and activities of employees"
    12·1 answer
  • Today, sandra will present a report to her class on the top ten income-producing countries in the world. most of the countries t
    14·1 answer
  • Which of the following statements is the most accurate?Consumers don't remember good advertisements.Advertising does not really
    7·1 answer
  • When using project management software, estimates of work time should be entered only at the work package level; the rest of the
    12·1 answer
  • Using the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you
    6·1 answer
  • Actimel is a dairy-based probiotic supplemental beverage made by Dannon. Originally, it was sold in organic food stores and only
    7·1 answer
  • Brian is a manager at a clothing store. He spends most of his time in the store with his employees, making sure they work their
    7·1 answer
  • If the federal reserve lowers the federal funds rate, what will happen to bank savings account?
    10·1 answer
  • A nongovernmental not-for-profit organization received the following donations of corporate stock during the year:Donation 1 Don
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!