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3 years ago

What happens to the money supply during inflation? *

1 answer:

6 0

The link between Money Supply and Inflation. ... Increasing the money supply faster than the growth in real output will cause inflation. The reason is that there is more money chasing the same number of goods. Therefore, the increase in monetary demand causes firms to put up prices.

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During 2013, Stein Corporation reported net sales of $3,500,000 and net income of$2,100,000. Stein also reported beginning total

lana66690 [7]

Answer:

b.2.8 times.

Explanation:

Asset turnover = net sales/average total assets

From Stein Corporation report,

Net sales = $3,500,000

Beginning total assets = $1,000,000

Ending total assets = $1,500,000

Average total asset = ($1,000,000 + $1,500,000)/2

= $1,250,000

Asset turnover = $3,500,000/$1,250,000

= 2.8 times

Option b is right.

5 0

3 years ago

Assume that $1 million is deposited into a bank with a reserve requirement of 15 percent. The value of the money multiplier is 6

Kryger [21]

Answer:

maximum change in money supply is $6.67 million

Explanation:

given data

deposit = $1 million

reserve requirement = 15%

money multiplier = 6.67

to find out

maximum change in money supply

solution

we know here money multiplier is given = 6.67

so maximum change in money will be

maximum change = deposit × money multiplier

put here value

maximum change = $1 million × 6.67

maximum change = $6.67 million

so maximum change in money supply is $6.67 million

6 0

3 years ago

It's advisable to start saving and investing as early as possible in order to A. allow for more spending later. B. take advantag

Dmitry_Shevchenko [17]

Answer: It's advisable to start saving and investing as early as possible in order to take advantage of compound interest.

Explanation:

C IS THE ANSWER

PLEASE MARK BRAINLIEST THANK YOU!

4 0

3 years ago

Economic profits and losses:__________.

antiseptic1488 [7]

Answer:

b. are both considered by economists to be a part of production costs.

Explanation:

The economic profits and the loss are the difference between the revenues that ate received form the sales of an output and cost of an input applied. These cost of the inputs and in the calculation of the both these costs are deduced from the revenue costs.

3 0

3 years ago

Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates it's fixed cost to be 550.00 and i

Citrus2011 [14]

Answer:

a. Breakeven in units is 2200 units

b. Break even in dollars is $1650

c. The answer is A. make a loss

Explanation:

The breakeven points in units is the point or number of units where the total revenue equals total cost and there is no profit or no loss. Below the breakeven quantity, the firm is operating at a loss and above it, it is operating at a profit.

The break even point in unit can be calculated by dividing the fixed costs by the contribution per unit. The formula for break even point in units is:

Breakeven in units = Fixed Costs / contribution per unit

Contribtuion per unit = Selling price per unit - Variable cost per unit

Break even in units = 550 / (0.75 - 0.5) = 2200 units/scissors

The break even point in dollars is the value of sales at which the company will breakeven and will make no profit and no loss. The break even point in dollars can be calculated by multiplying the break even point in units by the selling price per unit. Alternatively, it can also be calculated by dividing the fixed costs by contribution margin ratio.

Contribution margin ratio = (Selling price - variable cost) / selling price

CM ratio = (0.75 - 0.5) / 0.75 = 0.3333 or 33.33%

Breakeven in dollars = 2200 * 0.75 = $1650

Break even in dollars = 550 / ((0.75-0.5) / 0.75) = $1650

As 600 units is less than the breakeven number of units (2200 units) , it will make a loss.

5 0

3 years ago