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sergeinik [125]
3 years ago
15

Consider the portfolio choice theory of money demand. how do you think the demand for money will be affected during a hyperinfla

tion​ (i.e., monthly inflation rates in excess of​ 50%)?
Business
2 answers:
IrinaK [193]3 years ago
8 0

Answer:

Explanation:

During inflation, it is generally known that the demand for a good exceeds its supply, or the demand for a good remains the same, whereas its supply is smothered.

Inflation growing at an accelerated rate is known as hyperinflation.

According to the portfolio choice theory of money demand, the demand for money is affected by inflation risk. Higher fluctuations in the real return of money would arise due to the hyperinflationary environment, this thereby causes the demand for money to decrease.

Instead of holding onto money, people would start investing in other assets, whose real returns are not adversely affected by hyperinflation.

AleksAgata [21]3 years ago
6 0

Answer:

The demand for money decreases sharply.

Explanation:

The portfolio choice and Keynes's theory of demand for money both proposes that as the returns expected on money falls, its demand also falls. When there is an increase in interest rate, it leads to a decrease in the expectation placed on returns on money thus leading to a decrease in demand for money.

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Ruff Wear expects sales of $560, $650, $670, and $610 for the months of May through August, respectively. The firm collects 20 p
Orlov [11]

Answer:

$643

Explanation:

Collection in the month of August is made up of

  • 20 percent of sales for August
  • 70 percent of sales for the month for July
  • 8 percent of sales for the month of June

Considering all the elements stated above,Collection in the month of August

= (20% × 610) + (70% × 670) + (8% × 650)

= 122 + 469 + 52

= $643

6 0
3 years ago
Describe two financial goals that you would want to meet before you begin investing. Explain why you would want to reach those g
salantis [7]
One would be getting out of credit card debt. 
<span>another would might be having a savings account in case you lose a job.</span>
4 0
3 years ago
Bad Debts account has a credit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts
White raven [17]

Answer:

$14,300

Explanation:

Based on the information given we were told that the​ management of the company estimated that the amount in the uncollectible accounts will be the amount of $14,300 which means that the amount of $14,300 will be the balance of the Allowance for Bad Debts that should be reported on the company balance​ sheet.

5 0
3 years ago
Choose and describe a business that you would expect to have highly liquid assets and share a photo of that business (or company
Slav-nsk [51]

Answer:

I have chosen Apple Inc.

Explanation:

Apple Inc is a tech giant and manufactures innovative and most differentiated telecommunication products, music products, computer products, application services, etc which is highly valued among its customers. That's the reason why Apple is one of the most highly valued company in the world with almost $137 billion cash balance. This cash balance has been increased by $20 billion in the last three years which shows its higher profitability and that its inventory is highly liquid asset because it is quickly converted into cash. Furthermore, the greater demand of product and customer loyalty has strengthen its position all because of unmatched innovation introduced in each of its product every year. The greater cash balance shows that the company has greater sales and has higher profit margin on its unmatched product.

The picture of Apple headquarter and of its logo are given below:

6 0
3 years ago
A manager's operation had sales this period of $89,775. last period sales were $85,500. what was the manager's percentage sales
alexandr402 [8]

A manager's operation had sales this period of $89,775. last period sales were $85,500. So the manager's percentage sales increase for this period when compared to last period was 5% .

The percentage increase is the measure of the percentage change. The percentage increase is defined as the ratio of increased value to the original value and then multiplied by 100. Here the increased value can be calculated by taking the difference between the final value and the initial value. The formula to calculate increase is given by -

Percentage Increase = [(Final value – Original value) × 100] / Original value %

In this case,  original value is $85500 and the final value is $89775, then the percentage increase is:

Percentage Increase = [(89775-85500) ×100]/85500

= 427500/85500

= 5%

So, the percentage increase  will be 5% .

To learn more about percentage increase here

brainly.com/question/23040788

#SPJ4

5 0
2 years ago
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