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Sauron [17]
3 years ago
13

Consider the equilibrium condition for the asset market    StartFraction Upper M Over Upper P EndFraction equals Upper L (Upper

Y comma r plus pi Superscript e Baseline ). Using this​ condition, answer the following questions. A decrease in inflation ​expectations(pie​), with no change in​ output, real interest​ rate, or the money​ supply, will result in ▼ an increase no change a decrease in the price level. An increase in the nominal money supply ​(M​), with no change in​ output, real interest​ rate, or inflation​ expectations, will result in ▼ an increase no change a decrease in the price level. A decrease in output ​(Y​), with no change in the money​ supply, real interest​ rate, or inflation​ expectations, will result in ▼ an increase no change a decrease in the price level.
Business
1 answer:
Sophie [7]3 years ago
6 0

Answer:

a. A decrease in expectations with no change in output, real interest rate or the money supply will result in a decrease in the price level. This is because inflation expectation is directly related to the price level. A anticipated decrease in inflation in the future means that suppliers will reduce their prices as they want more of the product to be sold. With a decrease in inflation (in the future), the prices in the future are expected to fall further.

b. An increase in the nominal money supply, with no change in output, real interest rate or inflation expectations will result in an increase in the price level. Mathematically, this can be explained by RHS=LHS in the equation above. If everything on the right hand side (RHS) remains constant, it means the left hand side (LHS) = M/P must also remain constant, that is, an increase in M would lead to an increase in P so that the ration M/P does not change. An economic explanation of the same is that with an increase in money supply ceterus paribus, people would be willing to pay more as their income would increase.

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g A method used to determine the value of a stock by analyzing the earnings prospects while considering the business environment
Gennadij [26K]

Answer:

The correct option is fundamental analysis

Explanation:

Industry analysis centers on the competitive nature of the market where a business operates,hence it is a just a component of what makes fundamental analysis.

Operational analysis can be likened to performance measurement where the performance of a business is measured viz-a-viz the expected performance with to aligning actual performance with plan

Fundamental analysis is the correct option as it encompasses determining the value of stock by conducting both internal and external analysis of a business concern.

7 0
3 years ago
Fund flows that occur within a quarterly reporting period are referred to as _______________ cash flows.
valentina_108 [34]

Answer:

The options are

A. Inter period

B. Intra period

C. Regular

D. Irregular

The answer is B. Intra period

Intra period cash flow is defined as the flow which occurred in a certain period of time. In the example above , the cash flow occurred within quarterly reporting period of time.

6 0
3 years ago
The "real burden" of the debt is directly related to
goldenfox [79]
Hi.

I think the answer is the idea of opportunity cost.

~
5 0
3 years ago
The Chiemsee Knee Replacement Clinic (CKRC) is a sports clinic located at the northern edge of the German Alps. It specializes i
Firdavs [7]

Answer:

Another operating room is needed.

Explanation:

The data collected by the consulting firm reveal that the existing facility does not fulfill the requirement due to more number of people so for this reason they have to build another operating room to quickly facilitate more number of people in less time. There are more number of people comes to the clinic as compared to previous years which compels the authority to build up new operating rooms for the convenience of people that comes for knee replacement.

3 0
3 years ago
McGlothin Inc. is considering a project that has the following cash flow data. What is the project's payback?Year 0 1 2 3Cash fl
telo118 [61]

Answer:

c. 2.30 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

In year 0 = $1,150 (Initial investment)

In year 1 = $500

In year 2 = $500

In year 3 = $500

If we sum the first 2 year cash inflows than it would be $1,000

Now we deduct the $1,000 from the $1,150 , so the amount would be $150 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $500

So, the payback period equal to

= 2 years + ($150 ÷ $500)

= 2.30 years

In 2.30 yeas, the invested amount is recovered.

8 0
3 years ago
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