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oee [108]
3 years ago
12

Arkensland is a highly industrialized countr. Prices have been steadily increasing over the last few years and inflation reached

an all-time high of 8 % last year. Following this, the central bank came under pressure to reduce inflation to least 4 % in this year. With real GDP expected to grow at 2% this year, the finance minister suggested that the central bank should ensure that money supply growth in the current year is not more than 6%. However, inflation at the end of this year turned out to be higher than 4%, even though real GDP grew at 2% and money supply growth was restricted to 6%. Which of the following can most reasonably be inferred from the above information? A. The velocity of money increased this year. B. THere is a risk of hyperinflation in Arkensland. C. The growth of GDP in Arkensland has stagnated. D. The central bank of Arkensland must have sold bonds this year in order to reduce the money supply.
Business
1 answer:
ale4655 [162]3 years ago
4 0

Answer: (A) The velocity of money increased this year

Explanation:

First of all, the question says: "which of the following can be most reasonably inferred from THE ABOVE INFORMATION?"

"Above information" here refers to:

"Inflation rate turned out to exceed 4% in the current year, DESPITE Real GDP growth being at the estimated level of 2% AND money supply growth being at the restricted level of 6%"

So why did inflation growth rate still exceed money supply growth rate and real GDP growth rate?

Answer: the velocity of money increased in the current year. Velocity of money is the speed with which money is exchanged in the economy. The fact that the real value of this currency has dropped significantly (due to significant rise in inflation) made individuals lose interest in having a bulk of the currency. Hence, they quickly spend it once it gets to their hands (e.g. as disposable income) and this in turn causes inflation rate to rise.

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The answer to this question is called telecommuting or remote working arrangement. Telecommuting occurs when the employee is allowed to work from home for a certain period of time, thus decreasing the amount of time the employee has to spend in the office.

This arrangement is beneficial to both the employer and employee since the employer can reduce real estate cost for the office while the employee can reduce the associated stress with commuting to work as well as the costs.

8 0
3 years ago
Technology helps managers to monitor and control business activities and includes each of the following except:
rewona [7]

Answer:

Correct Answer:

b. Less extensive testing of records

Explanation:

Technology which is the use of machines or electronical devices to make work easier is applied in most organizations by organizational managers. <em>Unfortunately, less extensive testing of records is not one of its uses but rather detailed and extensive testing in order to check if there is any error in the records.</em>

8 0
3 years ago
Which of the following equations describes customer value?
Vlad1618 [11]

Answer:

A. Customer value = customer benefits - customer cost

Explanation:

The customer value is the worth of a product or a service as compared to other alternatives in the standpoint of a customer.

It is basically like the worth of obtaining a product or a service is to a customer. Customer value can be considered how a customer benefits from the product minus the cost of obtaining the product.

Benefits and cost does not always have to be in the form of cash. A benefit can be in the form of quality, value, experience and cost can be in terms of time, effort, or energy.

4 0
4 years ago
Nancy Company has a balance of $15,000 in accounts receivable on December 31, of which $1,500 is more than 30 days overdue. The
BabaBlast [244]

Answer:

E. $330 credit to allowance for doubtful accounts

Explanation:

With regards to the above, the adjusting entry on December 31st is computed as;

= [($15,000 - $1,500)× 0.1)]

= $135

1% of the balance less than 30days

= $1,500 × 0.1 = $150

Total = $45 + $135 + $150 = $330

5 0
3 years ago
Please answer these questions about opportunity cost
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3 years ago
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