Answer: $2240
Explanation:
The money supply simply refers to the total volume of money that is held by the public at a certain point in time. The value of M1 in this country will be calculated thus:
= Federal Reserve Notes in circulation + Coins in circulation + Checkable deposit
= $700 + $40 + $1500
= $2240
Therefore, M1 is $2240
Answer:
he percentage increase in purchasing power that the lender receives on a loan.
Explanation:
Interest rate is the rate earned on deposits or the rate charged on loans.
Interest rate could be real or nominal
Nominal interest rate is real interest rate plus inflation rate
Real interest rate is interest rate that has been adjusted for inflation
The higher the real interest rate, the higher the increase in purchasing power of the lender
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Answer: $4
Explanation: Implicit cost or sometimes referred to as the opportunity coast is the part of economic cost of a project. It can be defined as the loss of profit someone faces when choosing one alternative over other.
So implicit cost of Walter is $4 ($8 * 1/2HOUR), that is, the amount he could have earned if he were not building a birdhouse.
Answer:
"$10,000" is the appropriate solution.
Explanation:
According to the question, the values are:
Future cash flows,
= $2,10,000
Amortization Cost,
= $2,20,000
Now,
The loss amount will be:
= 
On substituting the given values, we get
= 
= 
Answer:
See below
Explanation:
Although a great GDP of 4% gives the impression of a strong economy, as is the case here, the inflation rate is much higher than desired. So, economic policies need to be reviewed in order to determine where the problem lies and what steps can be taken to remedy this situation.
