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elixir [45]
3 years ago
7

Suppose that this year's money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5 trillion. The price level

is , and the velocity of money is . Suppose that velocity is constant and the economy’s output of goods and services rises by 5 percent each year. Use this information to answer the questions that follow. If the Fed keeps the money supply constant, the price level will , and nominal GDP will . If the Fed wants to keep the price level stable instead, it should next year. If the Fed wants an inflation rate of 10 percent instead, it should . (Hint: The quantity equation can be rewritten as the following percentage change formula:

Business
1 answer:
MakcuM [25]3 years ago
4 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Calgary Industries is preparing a budgeted income statement for 2018. Predicted sales for the year are $730,000 and cost of good
NeTakaya

Answer:

$186,900

Explanation:

The gross profit is the difference between the sales revenue and the cost of good sold. The gross profit percentage is the ratio of gross profit to net sales expressed as a percentage.

As such, the net operating income/loss is the difference between the sales and the total costs .

To get the net income, we would first get the gross income.

Gross income

= $730,000 - (40% * $730,000)

= $438,000

Next we must compute the net income before tax. This is the difference between the gross income and the operating expenses

= $438,000 - $90,000 - $81,000

= $267,000

Income tax expense = 30% * $267,000

= $80,100

budgeted net income for 2018

= $267,000 - $80,100

= $186,900

8 0
3 years ago
Paraguay’s economy is afflicted by poverty and an absence of opportunities and advantages. However, a positive aspect of this si
Art [367]

Paraguay's economy is afflicted by poverty and an absence of opportunities and advantages. However, a positive aspect of this situation is none.

The economy of Paraguay is a market financial system that is distinctly depending on agriculture products. In latest years, Paraguay's economic system has grown because of improved agricultural exports, especially soybeans. Paraguay has the monetary benefits of a young population and great hydroelectric energy.

Paraguay has been one of the poorest and most unequal nations at the continent for a long term. the total poverty rate — defined by using the world financial institution as those with an income of much less than $3.10 a day — in Paraguay rose in 2016 from 26.6 percent to 28.8 percent.

Learn more about economy here: brainly.com/question/2824360

#SPJ4

7 0
2 years ago
Suppose you started a new all-equity financed company that is expected to generate an ROE of 15% indefinitely. The current book
Luda [366]

Answer:

The value of the stock at start-up = $67.5

Explanation:

According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return  

This principle can be applied as follows:  

The value of stock today is the present value of the future return discounted at the required rate of return

The return can be computed as the ROE × Book value of share

Return = 15%× 30 =4.5

Price of stock today = D× (1+g)/r-g

D= current return, g- growth rate, r-required rate of return

DATA: D= 4.5, g= 5%, r= 12%

PV  = 4.5× (1.05)/(0.12-0.05)

= 67.5

The value of the stock at start-up = $67.5

7 0
3 years ago
McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000 cash. This amount is reflective of Hogan's
anzhelika [568]

Answer:

D. $1,800 Decrease

Explanation:

                                       book value      Fair value       adjustment

01 Jan                             10,000               8,000             2,000

Depreciation                  -1000                 -800                  -200

31 Dec                             9,000                7,200              1,800 Decrease  

5 0
3 years ago
The opportunity cost of an action: can be determined by considering both the benefits that flow from as well as the monetary cos
yarga [219]
<h3>Hello there!</h3>

Your question asks what an opportunity cost of an action is.

<h3>Answer: D). is a subjective valuation that can be determined only by the individual who chooses the action.</h3>

The reason why answer choice "D). is a subjective valuation that can be determined only by the individual who chooses the action" is correct because an opportunity cost of an action is not the same for everyone.

An opportunity cost of an action is subjective, meaning that the action can be determined by someone's opinion, feelings, etc. Everyone thinks differently, therefore making everyone's opportunity cost of action different.

A opportunity cost of an action also is determined by the individual themselves, not anyone else. That's why the action is subjective, due to the fact that the decision on the action is determined by the individual personal opinions and feelings.

<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
8 0
3 years ago
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