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Lady_Fox [76]
3 years ago
12

Choose the answer below that is consistent with the following data: Assume that velocity is 5, the quantity of output is 1,000 i

tems, the price level is currently $10 and the Federal Reserve has created a total of $3,000.
(A) This economy will suffer from Deflation due to an insufficiency of money for the size of the economy.
(B) This economy will suffer from higher than normal interest rates due to an excess of money supply.
(C) This economy will suffer from an increase in the price level at some point in the future.
(D) The Fed is pursuing a contractionary monetary policy since the economy is in recession.
Business
1 answer:
Nonamiya [84]3 years ago
7 0

Answer:

(C) This economy will suffer from an increase in the price level at some point in the future.

Explanation:

Velocity of money is defined as the rate at which money is exchanged in an economy. It calculated the number of time money exchanges hands during transactions in the economy.

For example if two individuals have $50 each (total of $100) and they used the same money to perform total transactions of $500, the velocity of money will be 500/100= 5.

The formula for velocity of money is

Velocity of money = Gross domestic product/ Money supply

GDP (monetary value of output) = output * price

GDP= 1,000* $10= $10,000

Therefore

5 = 10,000/x

Cross-multiply

x= 10,000/5= $2,000

So money needed in the economy is $2,000. But the Federal reserve has created $3,000.

We have an excess cash of 3,000-2,000= $1,000 in the economy.

Since there is too much money in the economy people will spend more and there will be increase in demand. Supply will not be able to keep up with demand resulting in scarcity and an increase in prices. Eventually inflation will occur.

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What do intentional torts, negligence, and strict liability have in common?
ehidna [41]

Answer:

A

Explanation:

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3 0
2 years ago
A student has a savings account earning 9% simple interest. She must pay $1400 for first-semester tuition by September 1 and $14
IRINA_888 [86]

Answer: The answer is $2,759.22

Explanation: From the question above, we have:

September 1st to January 1st is 4 months, this is 1/3 of a year which means that the student will earn:

=> 9/3 = 3%

3% interest for the money that is saved is the savings account. So the student must put in at least:

x + 3%x = 1400

x + 0.03x = 1400

1.03x = 1400

x = 1400 / 1.03

x = 1,359.22

Therefore, if the student saves $1,359.22 in the savings account By September 1st, she will have $1400 by January 1st.

Also, the student needs to make $1400 for the first semester. So overall she will need to make:

1,400 + 1,359.22 = $2,759.22 during the summer in order to ensure that she will have enough money to pay for both semesters.

7 0
3 years ago
Sobota Corporation has provided the following partial listing of costs incurred during August:
QveST [7]

Answer:

a. $365,000

b. $346,800

Explanation:

The computations are shown below:

a. For product cost:

= Direct materials used + Direct labor + manufacturing overhead

where,

Manufacturing overhead  = Indirect labor + Property taxes, factory + Depreciation of production equipment

= $45,000 + $18,900 + $42,200

= $106,100

So, the product cost would be

= $168,100 + $90,800 + $106,100

= $365,000

b. For period cost

= Marketing salaries + Administrative travel + Sales commissions + Advertising

= $51,700 + $100,800 + $50,000 + $144,300

= $346,800

4 0
3 years ago
11. (-/1 Points] DETAILS BRECMBC9 5.11.010.
Lisa [10]

Answer:

2190 ; 2560 ;

$778.2

Explanation:

Total worth of gasoline sold = 16003.50

Cost of regular = 3.30

Cost of premium = 3.45

Let :

premium Gallon sold = x

Regular gallon sold = 370 + x

Hence, mathematically;

(3.45*x) + (3.30 * (x + 370)) = 16003.50

3.45x + 3.30x + 1221 = 16003.50

6.75x = 16003.50 - 1221

6.75x = 14782.5

x = 14782.5 / 6.75

x = 2190

Premium Gallon sold = 2190 gallons

Regular gallon sold = 2190 + 370 = 2560 gallons

Profit per regular gallon sold = $0.15

Progit per premium Gallon sold = $0.18

Total profit = (2190 * 0.18) + (2560 * 0.15) = $778.2

7 0
2 years ago
The projections for a new project show sales of 8,500 units, give or take 5 percent. The expected variable cost per unit is $28.
vitfil [10]

Answer:

$56,950

Explanation:

We will calculate the operating cash flow as follow;

OCF = {[($55 - $28.62) 8,500 ] - $170,000} × (1 - 0.35) + ($62,000 × 0.35)

= {[$224,230] - $170,000} × 0.65 + ($21,700)

= $35,249.5 + $21,700

= $56,950

Therefore, the operating cash flow is $56,950

8 0
3 years ago
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