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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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Wilson Trucking, Inc. reports these account balances at January 1, 2015 (shown in alphabetical order):Accounts Payable $220,000A
dexar [7]

Answer:

The correct option is C,$ 1,399,000

Explanation:

The items on the credit column would be the sum of  accounts payable, capital stock, notes payable and retained earnings  minus the payment of accounts payable and notes payable

Accounts payable is $220,000

capital stock is $680,000

notes payable is $520,000

retained earnings is $140,000

payment in respect of accounts payable is $150,000

payment in respect of notes payable is $11,000

total of credit column=$220,000+$680,000+$520,000+$140,000-$150,000-$11,000=$ 1,399,000.00  

6 0
3 years ago
______ effect happens when the place a product was manufactured influences how consumers perceive the product.
stiks02 [169]

Effect happens when the place a product was manufactured influences how consumers perceive the product.  Country of Origin

What benefits do consumer product firms derive by marketing internationally?

Competition with other companies can be maintained. Sales and profits can be enhanced. Life cycles of products can be extended.

Country of origin:

Country of origin represents the country or countries of manufacture, production, design, or brand origin where an article or product comes from. For multinational brands, CO may include multiple countries within the value-creation process.

Learn more about country of origin:

brainly.com/question/19048062

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8 0
1 year ago
After 160 customer reviews for the hotel, 65% were Excellent
Aneli [31]

Answer: 104 reviews

Explanation:

Number of customers reviews = 160

Percentage of customer reviews that were excellent= 65%

.

Number of customer reviews that were excellent will be:

= 65% × 160

= 65/100 × 160

= 0.65 × 160

= 104

104 reviews were excellent.

4 0
2 years ago
Alvin Hughes has selected a selling technique in which he has more control over the amount of the conversation between buyer and
trasher [3.6K]

Answer:

The sales presentation technique which Hughes is using is Memorized.

Explanation:

Here, it is given that Hughes has selected  a technique in which he has a control over the conversation between the buyer and seller.

So, this type of sales presentation is known as memorized sales presentation.

Sales presentation are of different types:

  • Webinars
  • Seminars
  • Full sales presentation
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Sales conversation: This term is commonly used inside sales.

      It is also referred as call conversation between two or more people in an organisation.

Memorized sales presentation: In this type of sales presentation we can approach to our customers by memorizing all of the terms we have to speak about our product to the customers.

It is also known as problem-solution selling.

6 0
3 years ago
A general rule of thumb is to keep your credit utilization rate at 30% or lower. What is your approximate credit utilization rat
Leto [7]

Answer:

90%

Explanation:

7 0
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