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lidiya [134]
3 years ago
13

Please help solve: Suppose that initially the money supply is $1 trillion , the price level equals 3, the real GDP is $5 trillio

n in based-year dollars, and income velocity of money is 15. Then the money supply increases by $100 billion, while real GDP and income velocity of money remain unchanged. How do I solve using the MsV=PY formula?
Business
1 answer:
topjm [15]3 years ago
3 0
The new price level after the increase in the money supply is 3.3. Therefore, the percentage increase in the money supply is 10%. The percentage change in the price level is 10%. Percentage change in the money supply is the same as the percentage change in the price level.
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The Federal Deposit Insurance Corporation was established in 1933, during the Great Depression, to:_________
ICE Princess25 [194]

Answer:

b) help stop bank failures throughout the United States.

Explanation:

A bank run can be defined as a situation where bank clients or depositors make withdrawals of their money simultaneously from banks as a result of them being scared or afraid the depository institution will run out of cash (bankruptcy) and become insolvent.

The Federal Deposit Insurance Corporation which is also generally referred to as the FDIC was a New Deal program introduced by President Franklin D. Roosevelt in 1933 and it was designed to prevent bank failures or bank runs and restore the public's faith in the banking system.

Hence, the Federal Deposit Insurance Corporation (FDIC) was established on the 16th of June, 1933 so as to counter or mitigate the problem with bank runs.

Generally, the income generated from the premium payments of insured banks is used to fund or finance the Federal Deposit Insurance Corporation (FDIC).

Additionally, to avoid bank runs or other financial institutions from being insolvent, the Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to these institutions when they're running out of money and as well as regulate their activities.

In conclusion, the Federal Deposit Insurance Corporation (FDIC) was established in 1933, during the Great Depression, to help stop bank failures throughout the United States.

7 0
3 years ago
Why is VisionSpring, an organization devoted to the problem of poor eyesight in the developing world, classified as a hybrid mod
JulsSmile [24]

VisionSpring can be classified as a hybrid model of social entrepreneurship since it is devoted to the problem of poor eyesight in the developing world which is a social issue.

It should be noted that social entrepreneurship mixes economic logic with social logic.

Hybrid organizations are the enterprises that design the business models in order to alleviate a particular environmental or social issue. Since VisionSpring is devoted to the problem of poor eyesight in the developing world, it's a hybrid organization.

Learn more about entrepreneurship on:

brainly.com/question/13628349

4 0
2 years ago
What are gestures, signs, or words used to communicate known as?
natulia [17]

Answer:

a symbols

Explanation:

Communication is preeminently symbolic. There are two major categories of signals people send: signs and symbols. Signs are the foundation of all communication. A sign designates something other than itself, and meaning is the link between an object or idea and a sign

7 0
3 years ago
Read 2 more answers
Congratulations! You have been appointed an economic policy adviser to the United States. You are told that the economy is signi
Nostrana [21]

Answer:

Price level may increase or decrease and output decreases.

Explanation:

The price level is determinated bu the money supply and demand. A single price, in this case oil, cannot determinate prices or we end up in a loop.

So this is insufficient information to determinate the price level.

While the income decrease at a worldwide level will make the output of the economy even lower.

4 0
3 years ago
Fabri Corporation is considering eliminating a department that has an annual contribution margin of $35,000 and $70,000 in annua
marshall27 [118]

Answer:

if eliminate department would be saving  $10000

Explanation:

given data

annual contribution margin = $35,000

annual fixed costs = $70,000

solution

we it is Continues than we realize loss that is here

Loss = contribution margin - fixed costs      .......................1

Loss  = $35000 - $70000

Loss  = $35000

and when it is Eliminates fixed cost = 25000 it will occur loss of 25000

so saving will be

Savings = $35000 - $25000

saving = $10000

so if eliminate department would be saving  $10000

5 0
2 years ago
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