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3 years ago

An increase in the money supply will have the greatest effect on real gross domestic product if

Business

1 answer:

balu736 [363]3 years ago

4 0

Answer:

<h2>An increase in the money supply will have the greatest effect on real gross domestic product if the quantity demanded of money in the economy is relatively insensitive to the changes in interest rate </h2>

Explanation:

In Macroeconomics or Monetary Economics, an increase in money supply basically implies an expansionary monetary policy leading to a reduction in the nominal interest, everything else in the economy held constant.
It also leads to inflationary impacts in the economy reflected by an increase in the overall price level of goods and services.
In money market, a reduction in interest rate would lead to an increase in quantity demanded for money as due to relatively lo interest rate the financial borrowers such as companies, commercial firms and investors would prefer to obtain higher capital or financial loans.
On the other hand, inflation or higher overall price level of goods and services means lower consumer demand for those goods and services. Hence, any increase in production of goods and services due to higher investment or financial borrowings by businesses or commercial firms would be offset by the reduction in consume demand which can have a negative impact on the economy as a whole.
Hence, if the quantity demanded for money by the financial and investment borrowers is relatively insensitive to changes in interest rate due to expansionary monetary policy, it can have a desirable effect on the real GDP level, in this case.

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Exercise 19-08 a-b Oriole Corporation incurred the following costs while manufacturing its product.

telo118 [61]

Answer:

$371,700

Explanation:

The computation of the cost of goods sold is shown below:

Cost of goods manufactured = Direct materials used + Direct labor cost + Manufacturing overhead cost + beginning work in process inventory - ending work in process inventory

where,

Manufacturing overhead cost is

= Depreciation on plant + Factory supplies used + Property tax on plant

= $61,000 + $29,300 + $21,800

= $112,100

The cost of goods manufactured is

= $126,400 + $113,500 + $112,100 + $14,600 - $16,700

= $349,900

Now the cost of goods sold is

= Beginning finished goods + Cost of goods manufactured - ending finished goods

= $70,900 + $349,900 - $49,100

= $371,700

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3 years ago

Chef Grill Company manufactures two types of cooking grills: the Gas Cooker and the Charcoal Smoker. The Cooker is a premium pro

kenny6666 [7]

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3 years ago

At what point does entertainment end and marketing begin? Why did you draw the line there?

Tcecarenko [31]

Answer:

Explanation:

The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers. The end objective of marketing is selling a product and in this case we presume marketing means advertisement.

Entertainment can be separated from marketing activities and appeal of entertainment can be used to achieve different goal. Entertainment can only be used for holding attention and interest of audience that would be the consumer or it gives pleasure or delight. It is an idea or task which is developed for keeping attention of audience and this process is accelerated by entertainment industry in order to sell entertainment product. But according to psychologists entertainment is just attainment of gratification and no other result or measurable benefits can be achieved by entertainment and role of entertainment ends here. Marketing begins with encouraging people towards purchasing the commercial product. Behind the scenes tactics like advertising, production, placement and pricing incorporated in marketing. Main objective of marketing is attracting consumers towards the product or services provided by the organization. While entertainment just hold attention and interest of consumers and it is the line between..The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers. The end objective of marketing is selling a product and in this case we presume marketing means advertisement.

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3 years ago

Shane is looking for ways to get more capital for his appliance sales and service business. he is very protective of his company

Nitella [24]

<span>Shane, who is interested in new ways to get more capital for his business that sells and services appliances, is highly protective of his company's information and often worries that it may fall into the wrong hands. With this state of mind, Shane is likely not interested in incorporating his money</span>

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3 years ago

On January 1, Year 1, Grade Company paid $300,000 for 20,000 shares of Medium Company's common stock, which represents a 15% inv

slavikrds [6]

Answer:

B) $300,000.

Explanation:

Since Grade Company cannot exercise any real influence on Medium Company, it cannot value its investment using the equity method and must record its investment at fair market value. This means that the investment account must equal the market value of the 20,000 stocks, which in this case is $300,000. Grade Company should also record dividends received as revenue from investing activities.

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3 years ago