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viva [34]
2 years ago
5

30-3. At the end of 2009 the relevant money-supply curve was the one labeled MS1. At the end of 2010 the relevant money-supply c

urve was the one labeled MS2. Assuming the economy is always in equilibrium, what was the economy’s approximate inflation rate for 2010?

Business
1 answer:
zhannawk [14.2K]2 years ago
8 0

Answer: c. 50%

Explanation:

I included a picture of the question to show you the rest of it as it is in graph form.

We can use the Quantity Theory if money to answer this.

It holds that MV = PY

M = quantity of money,

P = the price level,

Y = total output

V = velocity,

According to the theory, a change in M would lead to a change in P if V and Y are held constant.

Inflation would therefore be the change in M in percent.

= 15000 - 10 000 / 10 000

= 0.50 * 100

= 50%

Please do react or comment if you need clarification on anything or if the answer helped you. This would help other users as well. Thank you.

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Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and
Taya2010 [7]

Answer: The correct answer is "D. the benefit of lower prices to be greater than the cost of reduced services and less convenience.".

Explanation: Consumers obviously consider the benefit of lower prices to be greater than the cost of reduced services and less convenience.

Discount and no-frills airlines have less costs to cover so they can offer lower and more affordable prices for consumers. These airlines have been successful because it turns out that consumers value or prefer the lower price rather than the additional services.

3 0
3 years ago
whats good ways to get all of your homework done at a recent time instead of staying up doing not to your full capability and st
gayaneshka [121]

Plain out your day making time to do your work.  Do some of your work then set aside 10-15 mins to relax then work until you feel you need another 10-15 just limit it to two 15 min breaks for 4 hrs of work.


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8 0
3 years ago
What checks are there on the accuracy of these​ statements? ​ (Select the best choice​ below.)
kkurt [141]

Answer:

The correct answer is B

Explanation:

The checks which are there on the accuracy of the statements are:

1. The corporation needed to hire or require the neutral party, which is known as the auditor in order to check the annual financial statements of the company, and also ensures that the financial statements are to prepared as per GAAP (generally accepted accounting principles). It should also offer the evidence to support the information reliability.

2. The public companies need to use a common or general set of rules and the standard format while making the reports.

3. The role of auditor is to review the financial statements and in addition Sarbanes-Oxley Act  requires the CFO as well as CEO to attest personally to the accuracy of the financial statements.

4 0
3 years ago
You have the following data on The Home Depot, Inc. Market value of long-term debt: $20,888 million Market value of common stock
Phantasy [73]

Answer:

Expected rate of return on equity under the new capital structure is 9.75 %

Explanation:

given data

Market value of long-term debt =  $20,888 million

Market value of common stock =  $171,138 million

Beta =  1.04

Yield to maturity at 10 year t = 2.167%

Expected return on equity = 8.895%

Marginal tax rate t =  35%

solution

we get here cost of unlevered equity  by the cost of levered equity formula that is  

cost of levered equity  = rSU + (rSU-rD) ×  (1-t) × (D÷S)    .................1

here rSL is cost of levered equity and  rSU is cost of unlevered equity and rD is before tax cost of debt and D is  value of debt and S is value of equity.

put here value and we will get  

8.895% = rSU + (rSU-2.167%) ×  (1-35%) × (20,888÷171,138)

solve it we get

rSU = 0.084005

cost of unlevered equity  = 8.40 %

and

cost of levered equity for new capital structure will be

put here value in equation 1

cost of levered equity  = 8.40 + (8.40-2.376%) × (1-35%) × ( 20 ÷ 80 )

cost of levered equity = 9.75 %

5 0
3 years ago
Majka Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events: (1
Norma-Jean [14]

Answer:

Majka Company

a) Accounting equation to record effects of each event:

1. Assets (Cash) increased $29,500 = Liabilities + Equity (Retained Earnings) increased $29,500.

2. Assets (Cash) decreased $13,500 = Liabilities + Equity (Retained Earnings) decreased $13,500.

3. Assets (Cash) decreased $1,800 = Liabilities + Equity (Retained Earnings) decreased $1,800.

b) Income Statement, Statement of Changes in Stockholders' Equity, and a Balance Sheet dated December 31, 2016:

1) Income Statement for the year ended December 31, 2016:

Sales                        $29,500

Expenses                ($13,500)

Net Income             $16,000

Dividend                   ($1,800)

Retained Earnings $14,200

2) Statement of Changes in Stockholders' Equity:

Retained Earnings b/f  $0

Net Income                  $16,000

Dividend                        ($1,800)

Retained Earnings      $14,200        

3. Balance Sheet as at December 31, 2016:

Assets:

Cash ($29,500 - 13,500 - 1,800) $14,200

Liabilities + Equity:

Equity: Retained Earnings           $14,200

c) Reason for different terminology to date income statement and balance sheet:

Income statement is prepared for an accounting period.  It covers a specified period, while a balance sheet is prepared as at an accounting date.  This means that one can prepare a balance sheet daily, or even after each transaction.  But, an income statement covers a period of time, say a month, a quarter, or six months, or a year, as the case may be.

Explanation:

Income Statement, Changes in Equity, and the Balance Sheet are important financial statements, which a business prepares to report its financial performance (results), the changes that occur in owners' equity, and the financial position respectively.

6 0
3 years ago
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