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Andreas93 [3]
2 years ago
14

Using the equation of exchange, if the Federal Reserve Bank expands the money supply and but there is no real growth in the econ

omy and the general price level does not rise, what conclusion must we draw
Business
1 answer:
fenix001 [56]2 years ago
8 0

Answer:

The conclusion we can draw is that businesses invest heavily on capital expenditures for future growth.

Explanation:

The equation of exchange is:  M × V = P × Q, where:

M: the money supply

V: the velocity of money

P: the general price level

Q: the expenditures

Because V increase while P (no real growth in the economy mean the velocity of money is stable) and P are unchanged, Q must increase too. The increase is usually on capital expenditures.

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2. List and explain the components of the money supply
meriva

Answer:

Currency such as notes and coins with the people.

Demand deposits with the banks such as savings and current account.

Time deposit with the bank such as Fixed deposit and recurring deposit.

4 0
2 years ago
Identity thieves can use your personal information to:
lana66690 [7]
Steal your credit card information, steal your drivers license, and learn about your family and friends.
5 0
2 years ago
Using the estimated sales and production of 140,000 boxes of Chap-Off, the Accounting Department has developed the following man
Alchen [17]

Answer:

Silven Industries

If Silven buys its tubes from the outside supplier, it will be able to avoid $1.10 of its own Chap-Off manufacturing costs per box

Explanation:

a) Data and Calculations:

Estimated Production and Sales Units of Chap-Off = 140,000 boxes

Manufacturing cost per box:      Avoidable costs

Direct material              $ 3.70           $0.74 ($3.70 * 20%)

Direct labor                      2.00             0.20 ($2.00 * 10%)

Manufacturing overhead 1.60              0.16 ($1.60 * 10%)

Total cost                      $ 7.30            $1.10

Outside supplier's price for tubes = $1.20 per box

b) Unless there an alternative use for the machine used in making the tubes internally exists, it may not be cost-effective for Silven to buy from the outside supplier.  Alternatively, it should renegotiate a price per box that is less than $1.10 in order to stop making the tubes internally.

8 0
2 years ago
A situation in which a buyer has limited supplierâ options, is procuring a criticalâ item, needs technologyâ innovation, or is c
Dmitry_Shevchenko [17]

Answer:

Collaborative relationship

Explanation:

Here, it requires at least 2 parties to consent to this and the aim is to allow mutual benefits between both parties where they both benefit from each other. Thus, with this, more resources can be pumped to get the appropriate supply that is technologically advanced and equipped to to be used to foster the business

7 0
3 years ago
Which statement(s) most directly apply to capitalism? i. there is heavy government regulation of industry. ii. individuals can s
Kisachek [45]

The most directly applied sentence for capitalism is the price and availability of goods are determined primarily by the market. As the market is a free market in the economy.

<h3>What is Capitalism?</h3>

Capitalism is commonly thought of as an economic system in which private actors own and control the property.

According to their own interests, demand and supply freely set market prices in ways that benefit society.

 

Thus, option D which is iii only is correct.

For further details about capitalism refer to this link:

brainly.com/question/414301

3 0
2 years ago
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