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:
The answer is option (c), no he will not pass because he is running 4.8 miles in 35 minutes
Explanation:
This can be expressed as;
Speed=Distance/Time
where;
Distance to be covered=5 kilometers
Time=35 minutes
replacing;
speed=(5/35)=0.143 km/min
In order to pass the fitness test his speed has to be greater than 0.143 km/min
Determine if 3 miles per 35 minutes is greater than 0.143 km/min
I mile=1.6 kilometers
How many kilometers make 3 miles,
Jimmy runs=(3×1.6)=4.8 kilometers in 35 minutes
Speed=4.8/35=0.137 kilometers/minute
Speed jimmy runs (0.137 km/min)<the pace he needs to run to pass fitness test(0.143 km/min)
The answer is option (c), no he will not pass because he is running 4.8 miles in 35 minutes
Cognitive evaluation theory would question the use of money as a motivator because external motivational tools may lower intrinsic motivation because people will start working to get the reward, NOT because they are intrinsically motivated or challenged.
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