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Helen [10]
3 years ago
6

Suppose that this year's money supply is $400 billion, nominal GDP is $12 trillion, and real GDP is $4 trillion.

Business
1 answer:
Natali [406]3 years ago
3 0

Answer:

1. Price Level

= Nominal GDP/Real GDP

= 12 trillion/4 trillion

= $3

b. Velocity

= Price level * Real GDP/ Money supply

= 3 * 4/0.4

= 30

2. If the Fed keeps the money supply constant, the price level will <u>Decrease</u> , and nominal GDP will <u>Remain the same</u> .

The economy rose however money supply was kept constant. This means that prices could not rise and so had to decrease to cater for the increase in output. With lower prices but higher output, the Nominal GDP remained the same.

3. If the Fed wants to keep the price level stable instead, it should keep the money supply unchanged next year. <u>TRUE</u>

4. If the Fed wants an inflation rate of 11 percent instead, it should <u>Increase</u> the money supply by <u>14%.</u>

<u></u>

(Percentage Change in Money supply) + (Percentage Change in V) = (Percentage Change in Price) + (Percentage Change in GDP).)

V is constant so is 0.

(Percentage Change in M) = (Percentage Change in P) + (Percentage Change in Y).)

= 11% + 3%

= 14%

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Marta_Voda [28]

Answer:

The correct answer is letter "B": Nicolas Maduro of Venezuela.

Explanation:

The left-wing in politics is characterized by following pure communism, socialism, fascism, and anarchy ideas to rule a country. Even if the economy is regulated by the government under these societies promoting equal treatment moreover among the lowest economical stratus, human rights tend to be violated.  

Dictator Nicolas Maduro (born in 1962) took Venezuela's government after the decease of his predecessor Hugo Chavez (1954-2013). Under Maduro's mandate, Venezuela has an <em>inflation rate of 200,000% and the country's economy has contracted 35%</em>. Millions of Venezuelans have left the country because of the shortage of basic staples in the country and the lack of assistance to the masses' needs.

5 0
3 years ago
International data show a positive correlation between income per person and the health of the population. Which of the followin
SVEN [57.7K]

Individuals with higher incomes have better access to clean water, medical care, and good nutrition, and healthier individuals are likely to be more productive than sick ones.

<h3><u>Explanation:</u></h3>

Correlation refers to the relationship or association that exists between two variables taken into account for the research. There are three types of correlation such as positive, negative and no relation. Positive correlation refers to the situation when one variable is changed the other one will also be changed at the similar rate.

In the given scenario, it is said that there exists a positive correlation between the income per person and the population health. This means that when the individuals receives higher income then they can afford for getting clean water, medical care and also good nutrition and hence the healthier individuals will be more productive than the sick ones. This is because they can go for work without any leave or absence.

3 0
3 years ago
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throu
tiny-mole [99]

Answer:

Equivalent units : Direct materials = 916,000 units and Conversion = 895,900 units

Explanation:

Calculation of equivalent units of production with respect to direct materials and conversion.

1. Direct Material

Ending Work In Process Inventory (201,000 × 100%)                 = 201,000

Completed and Transferred Out (715,000 × 100 %)                    = 715,000

Equivalent units of production with respect to direct materials = 916,000

2. Conversion

Ending Work In Process Inventory (201,000 × 90%)                   = 180,900

Completed and Transferred Out (715,000 × 100 %)                    = 715,000

Equivalent units of production with respect to direct materials = 895,900

3 0
3 years ago
Which one of the following stocks is correctly priced according to CAPM if the risk-free rate of return is 3.4 percent and the m
MrRissso [65]

Answer:

D) Beta .98 expected return .107

Explanation:

In CAPM (Capital Asset Pricing Model), expected return = risk-free rate + Beta * market risk premium = 3.4% + Beta * 7.4%

We try every choice consecutively

A) Beta .87  expected return .096

⇒ expected return = 3.4% + 0.87 * 7.4% = 0.098

A is wrong

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C) Beta 1.62 expected return .146

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D) Beta .98 expected return .107

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D is TRUE

E) Beta 1.16   expected return .139

⇒ expected return = 3.4% + 1.16* 7.4% = 0.12

E is wrong

6 0
3 years ago
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Variable cost=1.875×50,000=93,750

fixed cost=120,000−93,750=26,250


5 0
3 years ago
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