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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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Check #1111 for $19.72, check #1112 for $9.50, and check #1113 for $35.00 have not cleared the bank. what is the total amount of

andreev551 [17]

19.72
9.50
+ 35.00
$ 64.22 total outstanding checks

3 0

3 years ago

The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8

Soloha48 [4]

Answer:

The amount of the last annual dividend paid is $4.3.

Explanation:

Given:

The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8 percent annually.

Now, to find the amount of last annual dividend paid.

Let the amount of last annual dividend paid be $l.$

Price of per share ( $p$ ) = $\$42.$

Rate of return ( $r$ ) = $12.2\%.$

Rate of dividend growth ( $g$ ) = $1.8\%.$

Now, to get the amount of last dividend paid we put formula:

$p=\frac{l(1+g)}{r-g}$

$42=\frac{l(1+1.8\%)}{12.2\%-1.8\%}$

$42=\frac{l(1+0.018)}{0.122-0.018}$

$42=\frac{l\times 1.018}{0.104}$

Multiplying both sides by 0.104 we get:

$4.368=1.018l$

Dividing both sides by 1.018 we get:

$4.3=l$

$l=\$4.3.$

Therefore, the amount of the last annual dividend paid is $4.3.

6 0

3 years ago

On January 10, 2017, a man in Lebanon, Virginia, frustrated with the DMV bureaucracy, paid his DMV bill with 300,000 pennies tha

Zepler [3.9K]

Answer:

a. The initial change in the money supply would be $0

b. The initial change in deposits would be $3,000.

c. Total reserves will also increase by $3,000.

d. The excess reserves is $2,820.

e. Cumulative change = $47,009

Explanation:

(a) Currency in circulation and bank deposits are both parts of the money supply.

So, when a man paid DMV with 300,000 pennies or $3,000 which DMV deposited into its account then in that case currency in circulation decreased by $3,000 and bank deposits increase by $3,000.

Since one component of the money supply is increasing while other is decreasing and that also by the same amount there will be no change in the money supply.

So, the initial change in the money supply would be $0

(b) DMV has deposited $3,000 into its bank account.

So,

Deposits will increase by $3,000.

Thus,

The initial change in deposits would be $3,000.

Deposits have increased by $3,000.

So,

Total reserves will also increase by $3,000.

Thus,

The initial change in total reserves would be $3,000.

(d) New deposit created = $3,000

Reserve requirement = 6 percent

Required reserves created = $3,000 * 0.06 = $180

Excess reserves = New deposit - Required reserves = $3,000 - $180 = $2,820

The excess reserves is $2,820.

(e) Reserve requirement = 6% or 0.06

Money multiplier = 1/Reserve requirement = 1/0.06 = 16.67

Calculate the cumulative change in the banking system in lending capacity -

Cumulative change = Excess reserves * Money multiplier

Cumulative change = $2,820 * 16.67 = $47,009

The cumulative change in the banking system in lending capacity would be $47,009.

5 0

3 years ago

There is an upside to linking the s&op process with supply chain partners. for one thing, __________ can help firms do a bet

Tcecarenko [31]

I am not sure I will notify you when I know

7 0

3 years ago

In recent years, foreign firms were reluctant to merge with or acquire American corporations.a. Trueb. False

dangina [55]

Answer:

b. False

Explanation:

Merging or acquiring American corporations by foreign firms helps them consolidating businesses or assets with a view to increasing productivity, maintaining a competitive edge, growing market share, or controlling supply and distribution networks. It gives them a reputation at the international stage as the United States has a dominant capitalist stand and merging with it ensures a promising future in the business market.

8 0

3 years ago