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.
Answer: FALSE
Explanation: In the given case Ronin is doing the recruitment function for the company which involves finding competent employees as per the organisation's needs and employing them at different jobs.
Controlling can be defined as the function under which management tries to achieve planned objectives by making employees working towards organisation's goals. In simple words controlling involves analyzing the current progress and take corrective actions if there are any deviations.
Hence, it is false.
Answer:
PV = $9,245.56
Explanation:
Giving the following information:
Future value (FV)= $10,000
Number of periods (n)= 2 years
Discount rate (i)= 4% = 0.04
<u>To calculate the present value (PV), we need to use the following formula:</u>
<u></u>
PV = FV / (1 + i)^n
PV = 10,000 / (1.04^2)
PV = $9,245.56
Answer:
y=.65x
Explanation:
this is for if its a x/y statement in which the value of y is 65% of the amount he earns in total which is the amount he saves total so that would be .65 of x
