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DedPeter [7]
3 years ago
15

According to the quantity theory of money, a 5 percent increase in money growth increases inflation by ___ percent. According to

the Fisher equation, a 5 percent increase in the rate of inflation increases the nominal interest rate by ____ percent.
Business
1 answer:
lina2011 [118]3 years ago
8 0

Answer:

both blanks can be filled by <u>5%</u>

Explanation:

The quantity theory of money states that there is a proportional relationship between the money supply and the general level of prices. An increase in the money supply will increase the general level of prices in the same proportion (called inflation).

The Fisher equation measures the relationship between nominal and real interest rates. Real interest rate = nominal interest rate - inflation rate.

So if inflation increases, the nominal inflation rate will increase to keep the real interest rate the same.

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A bank may establish a multinational operation for the reason of low marginal costs. The underlying rationale being that is_____
s2008m [1.1K]

Answer:

c) managerial and marketing knowledge developed at home can be used abroad with low marginal costs.

Explanation:

Low marginal cost represents low cost associated with the functioning of bank at low cost for each additional transaction of business. This basically provides for low costing.

Since the bank is able to exercise the low marginal cost in domestic market it expects to have a low marginal cost in international market also with the expertise of management.

As the bank feels confident with the management that it would be able to keep the cost low even in international domains thus, it expects low marginal cost in international domains also.

7 0
3 years ago
1. Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead based on 125,000 budgeted d
melamori03 [73]

Answer:

a. $17.44 per hour

b. $43,600 ; $104,640

Explanation:

The computation is shown below:

a. Single plantwide overhead rate equals to

= Total Overhead Amount ÷ Budgeted Direct Labor Hours

where,

Total overhead amount is

= $625,000 + $900,000 + $105,000 + $175,000 + $300,000 + $75,000

= $2,180,000

And, the budgeted direct labor hours is 125,000

So, the overhead rate is

= $2,180,000 ÷ 125,000

= $17.44 per hour

2. Now the overhead cost is

For Deluxe model

= 2,500 direct labor hours × $17.44 per hour

= $43,600

For basic model

= 6,000 direct labor hours × $17.44 per hour

= $104,640

7 0
3 years ago
B MC Qu. 7-200 Krepps Corporation produces ... Krepps Corporation produces a single product. Last year, Krepps manufactured 29,0
Gwar [14]

Answer:

a) $158.41

Explanation:

Unit product cost under absorption costing = Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead / Total manufactured units

= (214,674 + 121,842 + 243,684 + 319,110) /29,010

= $899,310 / 29,010 unit

= $31 per unit

Ending inventory = $29,010 - $23,900 / $31

= $5110 * 31 per unit  

= $158,410

8 0
3 years ago
Bill and rosie have been happily married for 40 years. they have never spent more than two nights apart. bill has been battling
Andre45 [30]
The type of care that Bill is receiving is hospice care. It is a care of which they focus on patients or individual who are ill, either chronically or terminally. They tend to provide the care that the patients need in regards to their needs of both spiritually and even emotionally. It could be seen above as Bill is being cared for as he is ill and is being provided by the care he needs.
3 0
3 years ago
Suppose Turing Inc. creates the first ever solar powered cell phone battery, absorbs ambient light and converts it into electric
horsena [70]

Answer:

This is an example of technology spillover and positive externalities.

Explanation:

Technology Spillover: The advantageous outcomes of new technological expertise on the productivity and creative capacity of other firms and nations are summoned as technology spillover.

Positive Externalities: When the consumption of goods and services leads to the benefits of other people, the term is known as positive externalities. If I become an educationist (assuming education as a good), it will help me to receive the private benefit. Besides the individual interest, I can help others to educate people.

Therefore, when Turning Inc. creates the first solar-powered cell phone battery, and it lasts up to 10 hours, it produces spillover technology.

When another company encourages to formulate technology with more lasting power, it creates a benefit for the other people as well as the technology spillover.

6 0
3 years ago
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