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ozzi
3 years ago
14

1. The level of prices and the value of money

Business
1 answer:
Marizza181 [45]3 years ago
8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

In year one, the basket costs $8.00.

In year two, the price of the same basket is $7.00.

Deflation= (7/8)-1= - 12.5%

In year one, $40.00 will buy ________ baskets, and in year two, $40.00 will buy ________ baskets.

Year 1= 40/8= 5 baskets

Year 2= 40/7= 5.71 baskets

The value of money rises.

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On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month:
Sphinxa [80]

Answer:

a. Dr Cash 17,500

Cr Common Stock 17,500

b. Dr Supplies 2,300

Cr Account payable 2,300

c. Dr Cash 13,300

Cr Sales commission 13,300

d. Dr Rent expense 3,000

Cr Cash 3,000

e. Dr Account payable 1,150

Cr Cash 1,150

f. Dr Dividend 1,800

Cr Cash 1, 800

g. Dr Automobile expense 1,500

Dr Miscellaneous expense 400

Cr Cash 1,900

h. Dr Salaries expense 2,800

Cr Cash 2,800

i. Dr Supplies expense 1,050

Cr Supplies 1,050

Explanation:

Preparation of Journal entry

a. Dr Cash 17,500

Cr Common Stock 17,500

b. Dr Supplies 2,300

Cr Account payable 2,300

c. Dr Cash 13,300

Cr Sales commission 13,300

d. Dr Rent expense 3,000

Cr Cash 3,000

e. Dr Account payable 1,150

Cr Cash 1,150

f. Dr Dividend 1,800

Cr Cash 1, 800

g. Dr Automobile expense 1,500

Dr Miscellaneous expense 400

Cr Cash 1,900

(1,500+400)

h. Dr Salaries expense 2,800

Cr Cash 2,800

i. Dr Supplies expense 1,050

Cr Supplies 1,050

8 0
2 years ago
The quantity theory of money is a theory of how A) the money supply is determined. B) interest rates are determined. C) the nomi
meriva

Answer:

C) the nominal value of aggregate income is determined

Explanation:

The quantity theory of money states that nominal aggregate income is determined by money supply. It is assumed that money velocity is constant in the short run and so would not impact nominal aggregate income.

The quantity theory of money is obtained from the equation of exchange which is:

(Money supply × velocity ) = (price × agregrate output)

Dividing both sides by velocity gives,

Money supply = (1/velocity) × ( price × agregrate output)

It is assumed velocity is constant, therefore,

Money supply = k × (price × agregrate output)

I hope my answer helps.

All the best

5 0
3 years ago
During market testing, Rembrandt Cosmetics realized that the cosmetics industry was dominated by multiple, well-established bran
Vinil7 [7]

In the given scenario, Rembrandt Cosmetics accomplished its substitution primarily through strategic planning of equivalence.  

<h3>What is strategic planning?</h3>

When the differences between two different strategic plans are identical, with other things being constant, such a situation is called as a strategic planning of equivalence.

Hence, strategic planning holds true regarding the given situation.

Learn more about strategic planning here:

brainly.com/question/16699515

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4 0
1 year ago
In two or three sentences, describe the labor market.
Gelneren [198K]
I think the labor market is the nominal market in which workers find paying work, employers find willing workers, and wage rates are determined. 
3 0
3 years ago
Read 2 more answers
Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is $15 and budget
dlinn [17]

If the actual sales volume is 5000 units,budgeted sales volume is 4500, actual selling price be $15 per unit and the budgeted price per unit be $15.75 per unit then the sales price variance is -$3750.

Given that actual sales volume is 5000 units,budgeted sales volume is 4500 units, actual selling price be $15 per unit and budgeted price per unit be $15.75 per unit.

We are required to find the sales price variance of the data.

Actual Sales volume = 5,000 units

Budgeted sales volume = 4,500

Actual selling price per unit = $15

Planned selling price = $15.75

So, calculation of the sales price variance is given below:-

Sales variance =Actual quantity sold × (actual selling price - planned selling price)

=5000*(15-15.75)

=5000*(-0.75)

=-$3750

Hence if the actual sales volume is 5000 units,budgeted sales volume is 4500, actual selling price be $15 per unit and the budgeted price per unit be $15.75 then the sales price variance is -$3750.

Learn more about variance at brainly.com/question/15858152

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6 0
1 year ago
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