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Gre4nikov [31]
4 years ago
9

In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3 percent per year, the money stock grows by 8 pe

rcent per year, and the nominal interest rate is 9 percent. What is the growth rate of nominal GDP? the inflation rate? the real interest rate?
Business
1 answer:
garik1379 [7]4 years ago
6 0

Answer:

What is the growth rate of nominal GDP?

  • 8%

the inflation rate?

  • 5%

the real interest rate?

  • 4%

Explanation:

money supply × velocity of money = price level × real GDP =  nominal GDP

since velocity of money is constant, any change in the money supply will result in an equal change in nominal GDP. Since the money supply grows by 8%, the nominal GDP also grows at 8%

growth rate of the money supply + growth rate of the velocity of money = inflation rate + real GDP growth rate

8% + 0 = inflation rate + 3%

inflation rate = 8% - 3% = 5%

real interest rate = nominal interest rate - inflation rate

real interest rate = 9% - 5% = 4%

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Answer:

Following are the solution to these question:

Explanation:

In point a:

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In point b:

Expenditure has been decreased to increasing jobs or costs. Disinflationary distance exists. To improve DA (shift rectors) and restore full job production, Govt must pursue the expansionary monetary policy.

In point c:

It will once again raise NPA because part A contributes to even more competition with higher public expenditure. The deflation divide is that there is. That alternative is an expansionary tax reform to move to the left.

In point d:

The rise in interest rates declines expenditure and, as part B, reduces AD. The deflationary difference remains. Government must use expansionary monetary policy to fight it, moving AD to a correct.

4 0
3 years ago
Coronado Industries reported the following information for 2016: October November December Budgeted sales $470000 $420000 $51000
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Answer: $445000

Explanation:

Based on the information that has been provided in the question, the amount of cash that Coronado will receive during the month of November will be:

= October sales × 50% + Novemeber sales × 50%

= ($470000 × 50%) + (420000 × 50%)

= $235000 + $210000

= $445000

4 0
3 years ago
- Strategic planning as a broad concept consists of
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B) Strategy formulation and strategy implementation.


It summarizes the process through which companies and organizations sets a list of goals, evaluate strategies, select strategies and implement them for evaluation.
5 0
3 years ago
FIFO Method Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of process costing for its monthly reports. T
Andrews [41]

Answer and Explanation:

The computation is shown below;

But before that return completed & transferred out is

= 100 + 1600 - 200

= 1,500

Now

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= 1,500 + (200 × 90%) - (100 × 30%)

= 1,500 + 180 - 30

= 1,650 units

2) cost per equivalent unit is

= $173,250 ÷ 1,650 units

= $105

3) cost of completed tax returns is

March 1  $2,500

Add: Beginning finished ($105 × 100 × (1 - 0.30)  $7,350

Add; started and finished = (105 × (1,500 - 100)) $147,000

Total    $156,850

4. The cost of tax retrun in process

= $105 × (200 × 90%)

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7 0
3 years ago
1. ______control environment risk assessment control procedures monitoring information and communication.2. ______provides reaso
Yuki888 [10]

Answer:

  1. Five internal controls
  2. Control procedures.
  3. Risk Assestment.
  4. Information and communication.
  5. Monitoring.
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Explanation:

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There are five internal control management that help in controling and managing overall work environment.

4 0
4 years ago
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