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Doss [256]
3 years ago
5

If the money supply is growing at a rate of 1010 percent per​ year, real GDP​ (real output) is growing at a rate of 11 percent p

er​ year, and velocityLOADING... is​ constant, what will the inflation rate​ be? nothing​%. ​(Enter your response as an integer value.​)
Business
1 answer:
Nat2105 [25]3 years ago
8 0

Answer:

The correct answer is 999%

Explanation:

We will use the Quantity Theory of Money to solve this simple question.

The Quantity Theory of Money equation is equal to:

ΔM X V = ΔP X ΔY

Where:

  • ΔM = Change in Money supply
  • V = Velocity, which does not change, because it is assumed to be constant
  • ΔP = Change in prices, or inflation
  • ΔY = Change in output or GDP

According to this theory, inflation is equal to:

ΔP = ΔM + V - ΔY

Replacing...

ΔP = 1010% + 0 - 11%

ΔP = 999%

So the price change, or inflation rate is 999%.

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Goofy Inc. had accounts receivable of $200,000 and an allowance for uncollectible accounts of $8,500 just before writing off as
SpyIntel [72]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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7 0
3 years ago
You survey 125 employees and determine that 25 are extremely unhappy. As you walk the floor, you run into a random employee, wha
Alex17521 [72]

Answer:

0.2 or 20%

Explanation:

The odds of meeting an unhappy person will be the no. of unhappy people divided by the sample size.

=25/125

=1/5

The odds are 1 in every five people is extremely unhappy.

1/5 = 0.2 or 20%

4 0
3 years ago
What new business strategies allowed businesses to weaken or eliminate competition?.
Rudiy27

Answer:

produce unique products

Explanation:

when a business produce unique products can't be threatened by substitution products

6 0
2 years ago
Read 2 more answers
Andre is considering an investment in Bristol Inc. and has gathered the following information. What is the expected standard dev
liberstina [14]

Answer:

c. 24.78%

Explanation:

For computing the expected standard deviation first we have to find out the expected rate of return which is shown below:

Expected rate of return = Respective return × Respective probability

=(0.4 × -10) + (0.2 × 10) + (0.4 × 45)

= 16%

Now we have to find out the total probability which is shown below:

Probability Return Probability × (Return - Expected Return)^2

0.4                  -10         0.4 × (-10-16)^2         = 270.4

0.2                    10         0.2 × (10 - 16)^2        = 7.2

0.4                   45         0.4 × (45 - 16)^2       = 336.4

Total                                                                   = 614%

As we know that

So

Standard deviation= [Total probability × (Return - Expected Return)^2 ÷ Total probability]^(1 ÷2)

= (614)^(1 ÷ 2)

= 24.78%

8 0
3 years ago
What kind of transition does a peak mark in the business cycle?
MissTica

expansion to contraction

Explanation:

The peak in a business cycle is marked by super-heated business sentiments, growth in business and increased production and hence enhanced profits. However, the transition to peak cycle is marked by a continuous phase of declining production capacity, depreciating profits and contraction of the business process.

Peak, contraction, slowdown, recovery is the phases of the cyclical business process. Peak gives way for contraction which eventually leads to slowdown. After a brief period of lull, the business recovers and again it ascends its peak and the cycle continues.

8 0
3 years ago
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