1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
photoshop1234 [79]
3 years ago
13

Suppose velocity is constant at 4, real output is constant at 10, and the price level is 2. From this initial situation, the cen

tral bank increases the nominal money supply to 6. If velocity and output remain unchanged, by how much will the price level increase?
A) 2.4%

B) 20%

C) 24%

D) 50%
Business
1 answer:
barxatty [35]3 years ago
5 0

Answer:

The price level will increase 20%. The right answer is B.

Explanation:

In order to calculate how much will the price level increase, we require to calculate according to the data we have the new price level.

Hence, New price level = 6 + [ (1 - 4 / 10) * 2 ]    

                                        = 6 + [ (1 - 0.40) * 2 ]

                                        = 6 + (0.60 * 2)

                                        = 6 + 1.20

                                         = $ 7.20

Therefore, the Increase in price level = (7.20 - 6) / 6

                                                               = 1.20 / 6

                                                                = 0.20=20 %

The price level will increase 20%.

You might be interested in
Titanic Roofing Company has estimated the following amounts for its next fiscal​ year: Total fixed costs $ 840 comma 000 Sale pr
Nina [5.8K]

Answer:

Operating income increases by $40,000.

Explanation:

Given that,

Total fixed costs = $840,000

Sale price per unit = $60

Variable cost per unit = $30

Additional amount spend on advertising = $35,000

Sales volume would increase by 2,500 units.

Contribution margin:

= Sales - Variable costs

= $60 - $30

= $30 per unit

Increase in operating income:

= Increase in contribution margin - Increase in Fixed costs

= ($30 × 2,500 units) - $35,000

= $75,000 - $35,000

= $40,000

3 0
3 years ago
Purchasing power parity (ppp) is considered an __________ measurement poverty levels
Nastasia [14]

Purchasing power parity (ppp) is considered an objective measurement poverty levels.

Purchasing power parity:

  • By removing the variations in price levels between nations, purchasing power parities (PPPs) are rates of currency translation that aim to equalize the purchasing power of various currencies.
  • monetary and developmental. Timothy Callen the rate at which the equivalent amount of goods and services might be purchased in one country using the currency of the other at a certain exchange rate.
  • By taking the geometric mean of the pricing relationships between each pair of economies for the two varieties of rice, the basic-heading PPP for each pair of economies may be calculated directly. This comparison is bilateral.
  • China, despite still being a developing country, is thought to have the greatest PPP in the entire world. This is due to the country's economy being the largest in the world, despite the fact that the bulk of its population earn extremely low wages.

Learn more about Purchasing power parity here

brainly.com/question/14635386

#SPJ4

7 0
2 years ago
Lee starts entering data into the table. He types in the mass of Mercury. Next, he wants to type in the diameter of Mercury.
katrin [286]

Answer:

Her weight is lower on Venus because the acceleration due to gravity is lower.

Explanation:

6 0
3 years ago
Read 2 more answers
Teams have better communication than other workers because they get to ______. A. Know each other better b. Attend communication
nadya68 [22]

A. Know each other better

Team refers to a group of people who come together to carry out interdependent task whilst also accomplishing a common mission or specific objective.

Team comprises individuals or employees who have complementary skills, knowledge and experience needed to execute a project successfully.

When a person is working in a team, he or she has the privilege of interacting with other team members hence create performance and strengthen the level of relationship amongst them.

It therefore means that teams have better communication than other workers because they get to know each other better in the course carrying out their duties.

learn more at : brainly.com/question/19724748

7 0
2 years ago
Amazon stock prices gave a realized return of 6​%, negative 6​%, 9​%, and negative 9​% over four successive quarters. What is th
Anvisha [2.4K]

Answer:

-1.167%

Explanation:

The current value of the stock is given by applying all of the realized returns to the initial purchase price. Let 'A' be the initial price, the price at the end of the year is:

P = A*(1+0.06)*(1+0.09)*(1-0.06)*(1-0.09)\\P=0.9883A

At the end of the year, the stock had a price of 0.9883 times the initial price, the annual realizes return was:

r=(0.9883 - 1)*100\%\\r= -1.167\%

Annual realized return was  -1.167%.

8 0
3 years ago
Other questions:
  • Stocks with higher than average potential to increase in value are referred to as
    13·1 answer
  • The Candle Shop experienced the following events during its first year of operations, Year1
    14·1 answer
  • X-inefficiency refers to a situation in which a firm:
    12·1 answer
  • Tom works at a company that has a closed shop arrangement. in which industry does tom most likely work
    13·1 answer
  • Marketing activities today are completed in much the same way they have always been done. True False
    9·1 answer
  • Your product has been suffering from steadily eroding sales. You have tried a number of options to revitalize the product's sale
    8·1 answer
  • A typical point-of-sale display features products that are likely to be ___.
    5·1 answer
  • Three shareholders brought an action in federal district court for a violation of federal securities law against a corporation.
    5·1 answer
  • As a student of Business Ethics and a managing director of a multinational company, discuss five (5) factors you will consider i
    13·1 answer
  • What is the term given to a specialized accounting book or computer program in which information is transferred into specific ca
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!