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elena55 [62]
3 years ago
10

Imagine that the chairperson of the Federal Reserve announced that, as of the following day, all currency in circulation in the

United States would be worth 10 times its face denomination. For example, a $10 bill would be worth $100; a $100 bill would be worth $1,000, etc. Furthermore, the balance in all checking and savings accounts is to be multiplied by 10 as will the balance of all outstanding debts. So, if you have $500 in your checking account, as of the following day, your balance would be $5,000, etc. Would you actually be 10 times better off on the day the announcement took effect?
A. No, because the velocity of money would stay constant.

B. Yes, because you would now be able to buy 10 times as much in goods and services.

C. No, because all prices would increase by a factor of 10 as well, keeping the real value of your money constant.

D. Yes, because the real value of your money would increase by approximately a factor of 10.

Is the answer A,B,C, or D?
Business
1 answer:
mojhsa [17]3 years ago
6 0

Answer:

C) No, because all prices would increase by a factor of 10 as​ well, keeping the real value of your money constant.

Explanation:

The amount of money that you have increased 10 fold, but also your liabilities increased in the same proportion, and the goods and services you regularly purchase will also increase in the same proportion (your monthly payments, etc.) so really nothing has changed except that the dollar lost 90% of its purchasing power.

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A portfolio is made up of stocks a, b, c, and d in the proportion of 20%, 30%, 25%, and 25% respectively. the nondiversifiable r
kow [346]

The portfolio beta would simply be the summation of the weighted average of each beta.

Where weighted average of each beta is calculated as:

Stock weighted average = Stock proportion * Individual beta

Therefore,

Stock A beta weighted average = 0.2 * 0.4 = 0.08

Stock B beta weighted average = 0.3 * 1.2 = 0.36

Stock C beta weighted average = 0.25 * 2.5 = 0.625

Stock D beta weighted average = 0.25 * 1.75 = 0.4375

The summation of all betas yield the overall portfolio beta:

Portfolio beta = 0.08 + 0.36 + 0.625 + 0.4375

<span>Portfolio beta = 1.5025 ~ 1.5</span>

4 0
3 years ago
What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.) Total manufacturing cost_____
Nastasia [14]

Answer:

$52,285

Explanation:

The computation of the total manufacturing cost assigned to Job P is shown below:-

Total manufacturing cost = Direct material + Direct labor + Manufacturing overhead applied

= $13,000 + $21,000 + (2,300 × $7.95)

= $13,000 + $21,000 + $18,285

= $52,285

Therefore for computing the total manufacturing cost assigned to Job P we simply applied the above formula.

6 0
2 years ago
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a ten-year operating lease agree
iVinArrow [24]

Answer: $20,000

Explanation:

The effect of the lease on Lakeside's earnings will be the difference between the earnings from the lease and the cost of the building which will be depreciation.

Depreciation = 2,300,000/25

= $92,000 per year

Earnings per year;

= 28,000 * 4

= $112,000

Increase in earnings = 112,000 - 92,000

= $20,000

6 0
3 years ago
Likert company manufactures extremely accurate scales. They use a standard costing system. Last year the company projected that
sergij07 [2.7K]

Answer:

$ 2,504,000

Explanation:

Budgeted overhead= $2,375,000

FOH budget variance= $129,000

Actual amount of fixed overhead= $2,375,000+$129,000

=$ 2,504,000

Therefore the actual amount of fixed overhead will be $ 2,504,000

4 0
3 years ago
3. What fallacy is illustrated by the following statement? "This work is driving me crazy!"
disa [49]
<h3>Statement by Fallacy</h3>

"This work is driving me crazy!"

The above sentence is said by Fallacy a worker of a cafe in a busy shopping mall, She tries her best to serve the customers but the customers are quite rude and that is the reason why she said such a dialogue.

<h3>Customer Behaviour</h3>

Fallacy wants the customers to act kindly and be a little patient, but that is completely the opposite of what is reality.

She is unable to leave the job as it is a well paid job and she is not able to find another job that can pay her this much salary.

Learn more about Business at brainly.com/question/26675384

3 0
2 years ago
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