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3 years ago

The idea that the money supply does not affect real economic variables is called:________

Business

1 answer:

Sergio [31]3 years ago

3 0

Answer:

The correct answer is letter "B": monetary neutrality.

Explanation:

Austrian economist Friedrich A. Hayek (1899-1992) referred to monetary neutrality as a theory that states the changes in the money supply do not affect the prices of goods, services, wages but no the economy as a whole. According to Hayek, printing more money could increase the demand affecting some economic variables (such as the mentioned above), but in the long run, it does not have a relevant impact.

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The checkbook of Vance Company had a balance of $2,210.55. The bank statement showed a balance of $4,918.18. The bank collected

Vikentia [17]

Answer:

$4,332.89

Explanation:

The adjusted reconciled checkbook balance will include:

checkbook balance $2,210.55

+ bank collect note $2,000.00

- fee for collecting the note ($5.00)

+ earned interest $42.33

+ difference in recording a check $400 - $300 = $100

- banking service charge ($14.99)

total = $4,332.89

6 0

3 years ago

Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 30%. The T-bill rate

bulgar [2K]

Answer:

The proportion of the investment is 100%.

Explanation:

This can be calculated using the following formula:

Rportfolio = (y * Rrisky) + ((1 - y) * Ttbill) ..................... (1)

Where;

Rportfolio = Overall portfolio expected rate of return = 15%. or 0.15

Rrisky = risky portfolio expected rate of return = 15%, or 0.15

Ttbill = T-bill rate = 10%, or 0.10

Substituting the values into equation (1) and solve for y, we have:

0.15 = (y * 0.15) + ((1 - y) * 0.10)

0.15 = 0.15y + 0.10(1 - y)

0.15 = 0.15y + 0.10 - 0.10y

0.15 - 0.10 = 0.15y - 0.10y

0.05 = 0.05y

y = 0.05 / 0.05

y = 1.00, or 100%

Therefore, the proportion of the investment is 100%.

6 0

3 years ago

Police radar equipment is used to detect the speed of objects. In one trial, the radar equipment records a stationary tree as tr

Ganezh [65]

The measurement problems that exist in the radar equipment are accuracy , reliability

Explanation:

There are two different kinds of Radar that is being used such as rotating- antenna radar and traffic radar. The type of radar that is being used by police contains a stationary single antenna. this will be pointing in one direction. The signal that is modulated will not be sent. There will not be any cathode ray screen for displaying the collected information.

As the antenna points only one direction it can measure only the speed of those object that is either moving towards or away from the radar. It cannot sense the kind of object that it is measuring and it could not also tell the direction in which the object is travelling. Hence, the reliability and the accuracy are the main measurement problems.

3 0

3 years ago

The U.S. Bureau of Economic Analysis (BEA) has recently adopted a new approach to calculate real GDP and real GDP growth to cor

pashok25 [27]

One of the features of the new approach is that, now BEA uses the geometric average of fixed weight indexes and uses two base years to calculate the growth rate of real GDP between two consecutive years.

Explanation:

In both actual and nominal GDP, the U.S. Economic Analysis Department results. It estimates the real United States. GDP is a fixed base year annual rate. Imports and international sales from American businesses and people are exempt.

GDP reflects the degree to which the economy generates production. Global warming is not generated and not part of GDP. The effect of environmental damage is not measured accurately. The loss should not be included in GDP and the calculation of environmental damage has not been accepted.

3 0

3 years ago

On January 3, 2014, Trusty Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Trusty

likoan [24]

Answer:

Accumulated depreciation for Years 1 - 5 under:

the Straight-line method is $90,000.
the Units-of-production method is $90,000.
the Double-declining-balance method is $86,170.

Explanation:

The total cost of the asset is $90,000 + $3,000 + $1,500 + $4,500 = $99,000, since all the other costs were directly attributable cost and were necessary to bring the asset to usable form.

The painting is capitalized because it is the first time Trust Delivery would be using the asset, otherwise it would have been expended
Overhauling cost can be regarded as a separate asset, if we were provided with different useful lives - componentization.

Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($99,000 - $9,000) / 5 years = $18,000 yearly depreciation expense.

Accumulated depreciation for Years 1 to 5 is $18,000 x 5 years $90,000.

The unit-of-production method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:

(Original Cost - Salvage value) / Estimated production capacity x Units/year

At Year 1, depreciation expense (DE) is: ($99,000 - $9,000) / 100,000 miles x 22,500 miles = $20,250/year

Accumulated depreciation for the first four years is $20,250 x 4 years = $81,000.

At Year 5, depreciation = $90,000 / 100,000 miles x 10,000 miles = $9,000

Note that this depreciation method results in higher depreciation charge when the asset is heavily used, at this time, it was in Years 1 - 4.

Accumulated depreciation expense for Years 1 to 5, under this method, is $90,000 (addition of first four years and the Year 5).

The double-declining method is otherwise known as the reducing balance method and is given by the formula below:

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

SLDP is 100%/5years = 20%, then 20% multiplied by 2 to give 40%

At Year 1, 40% X $99,000 = $39,600

At Year 2, 40% X $59,400 ($99,000 - $39,600) = $23,760

At Year 3, 40% X $35,640 ($59,400 - $23,760) = $14,256

At Year 4, 40% X $21,384 ($35,640 - $14,256) = $8,554 approximately (the depreciation expense would stop at this stage since the amount falls below the residual value).

Accumulated depreciation expense for Years 1 to 4, under this method, is $86,170 (addition of all the yearly depreciation).

7 0

3 years ago