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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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At the Sunny Solutions Company, employees are involved in decision making and promised long-term employment. The employees follo
d1i1m1o1n [39]

Answer:

The Theory Z management

Explanation:

At the Sunny Solutions Company, employees are involved in decision making and promised long-term employment. The employees follow a somewhat specialized career path and have individual responsibility for results. Sunny Solutions' approach is an example of:___The Theory Z management___

7 0
3 years ago
What does an owner own if the duration of his or her rights in an estate cannot be determined?
kifflom [539]

The owner own the freehold estate if his or her rights in an estate cannot be determined

Explanation:

In this type the owner will not know the duration for which he or she can hold the estate and they can enjoy exclusively all the rights for an undefined length of time or period

They are of three kinds a fee simple, a fee tail, and a life estate in these type the owner can enjoy the rights for an amount of time that is not known to him and this also includes the ownership in the properties

5 0
3 years ago
An investment adviser that is a sole proprietor finds that its net worth (net capital) has fallen below the minimum requirement.
Liono4ka [1.6K]

A mutual fund position that is owned by the individual should be contributed to bring back the position of the advisory firm.

Answer: Option D

<u>Explanation:</u>

Net worth is the value of the firm of all the financial and the non financial assets which the firm owns. The outstanding liabilities of the firm are deducted from the net worth.

Mutual funds have the flexibility where they can manage the cash positions according to themselves. They can be followed by the market speculators and can be used to know the net worth in the market.

3 0
3 years ago
A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve
BlackZzzverrR [31]

Answer:

a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month.

  • Cost for Plan A = ($0.41 x 120) + ($0.16 x 40) + $20 = $ 75.60
  • Cost for Plan B = ($0.51 x 120) + ($0.15 x 40) + $20 = $ 87.20
  • Cost for Plan C = $80 + $20 = $100

b. If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal?

  • If the agent will use the service only for daytime calls, Plan A is better if the agent uses 195 minutes maximum. If the agent expects to use 196 or more minutes, then Plan C is better.

c. Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans A and B?

  • Plan A charges 10¢ less per daytime minute, while plan B charges 1¢ less for evening minutes, that means that the proportion of daytime calls should be 1/11, while the proportion of evening calls should be 10/11.

7 0
3 years ago
Schonhardt Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its a
QveST [7]

Answer:

a. $16,500

Explanation:

The computation of the total amount of fixed manufacturing cost is shown below;

= Number of units sold & produced × fixed manufacturing overhead per unit

= 5,000 units × $3.30

= $16,500

Hence, the correct option is a.

3 0
3 years ago
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