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kow [346]
2 years ago
14

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

Business
1 answer:
balu736 [363]2 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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You want to invest in a project in LaLaLand. The project has an initial cost of LLL 757,000 and is expected to produce cash infl
Lelu [443]

Answer:

194,112.8

Explanation:

The computation of  Net Present Value is shown below:-

Net Present Value = Present value of cash inflows - Present value of Cash outflows

= -757,000 + 396,000 × PVAF (12%, 3 years)

= -757,000 + 396,000 × 2.4018

= -757,000 + 951,112.8

= LLC 194,112.8

= 194,112.8

Therefore for computing the net present value we simply applied the above formula.

8 0
2 years ago
Managing a workplace that truly embraces diversity in the workforce can increase which of the following? Select all that apply.
Simora [160]

Answer:

(A) Creativity

(C) Productivity

(D) Satisfaction

Explanation:

Liability: The liability is the amount that is due to someone. It means you have full responsibility for a thing you promised to someone.

Lawsuits: When some one sue to another for not giving the amount, or by any other reason is called law suits

In the given scenario, for diversity in the workforce, the creativity, productivity, and satisfaction level is more important through which the employees can give their best due to which, the objective of an organization can be achieved in an efficient and effective manner.  

The other two give a negative impact on the organization's reputation, so it will not be considered.

6 0
2 years ago
what is the difference between procedures and rules? can some rules be eliminated when solid procedures are in place? discuss.
iragen [17]

Rules are made so that people behave in a particular manner whereas, procedures are meant to guide about how to do something.

Procedures are the standard steps used to carry out tasks in an organization. They were created for repetitive tasks. They offer instructions regarding how to carry out a task. In speaking, procedures are inflexible and provide no room for inventiveness. It eliminates ambiguity from the work and provides it a clear structure.

Rules are specific instructions that define what must be done and what shouldn't be done. They were created in order to preserve, govern, and manage the workplace. They were inflexible and lack adaptability. Strict disciplinary measures are applied when rules are broken. It reflects decisions about what needs to be done and what cannot be done.

No, rules cannot be eliminated when solid procedures are in place because they determine the behavior or manner in which things should be done.

Learn more about rules and procedures here:

brainly.com/question/28361947

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8 0
11 months ago
NaviCal Inc., a personal navigation system company, has contracted its manufacturing to a firm in Malaysia for five years. NaviC
tekilochka [14]

Answer:

Direct foreign investment

Explanation:

Foreign direct investment (FDI) is done in the case when the company controls the ownership in the other country of the business entity

Here the foreign company would be directly linked with the day to day operations that done in the other country this means that here not only the contribution of money matters but also the knowledge, skills, capabilities, techonology is also matter

Therefore the above represent the answer

5 0
2 years ago
Miracle Company purchased treasury stock with a cost of $15,000 during 2013. During the year, the company paid dividends of $20,
kodGreya [7K]

Answer:

The correct answer is option (b) $831,000 net cash inflow.

Explanation:

Solution

Recall that:

Company miracle bought stock treasury with a cost of = $15,000

Dividends paid =  $20,000

Bond issued =$ 866,000

Now,

The cash flow from financing activities is calculated as follows:

Bonds payable -Purchased treasury stock - Dividend paid

$866,000 - $15,000-$20,000

= $831,000

Therefore, The net cash flow is $831,000

6 0
3 years ago
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