All categories

3 years ago

If the economy starts at O, a decrease in the money supply moves the economy Group of answer choices

Business

1 answer:

Dmitrij [34]3 years ago

8 0

Answer: c. to Q in the long run.

Explanation:

A decrease in money supply will mean a decrease in the amount that households have for consumption. This will decrease Aggregate demand and force it to the left where it will then intersect with the SRAS at point R.

This will mean that the economy is in a recessionary gap as they are producing less than they can.

In the long run, the reduced economic activity will mean that some costs of factors of production like wages will be lower so more companies will hire labor and produce more which will increase the production in the economy.

This will move the SRAS curve to the right where it will intersect with the AD curve and the LRAS curve at point Q.

You might be interested in

Clabber Company has bonds outstanding with a par value of $123,000 and a carrying value of $111,100. If the company calls these

White raven [17]

Answer:

The gain on retirement = $4,600

Explanation:

The gain or loss on retirement = Carrying Value of the Bonds - Call price of the Bonds

The gain or loss on retirement = $111,100 - $106,500

The gain on retirement = $4,600

Note: Par value will not be taken for the calculation of the above

4 0

3 years ago

Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100

Soloha48 [4]

Answer:

a. The variable costing operating income is less than absorption costing operating income.

b. The difference in variable costing and absorption costing operating income is:

= $739,200.

Explanation:

a) Data and Calculations:

Fixed manufacturing costs per unit = $44

Variable manufacturing costs per unit = $100

Production units = 67,200

Sales units = 50,400

Ending inventory = 16,800

Income Statements Variable Absorption

Costing Costing

Costs of goods sold: $5,040,000 $7,257,600

Fixed expenses 2,956,800

Total costs $7,996,800 $7,257,600 $739,200

b) The difference in variable costing and absorption costing operating income is because of the absorbed fixed costs in ending inventory, which is now carried forward to the next accounting period.

4 0

3 years ago

Achi Corp. has preferred stock with an annual dividend of $ 3.22. If the required return on Achi's preferred stock is 8.4 %, w

Elza [17]

Answer:

The price of the stock is $38.33

Explanation:

The dividend growth is zero on a preferred stock thus its dividends are just like a perpetuity as the stocks have no defined life. The formula for the price or value of a perpetuity or the zero growth model is,

P0 = D / r

Where,

D is the dividend

r is the required rate of return

Thus, the price of the stock is:

P0 = 3.22 / 0.084 = $38.33

3 0

3 years ago

Read 2 more answers

1. A major controversy that is yet to be resolved about the Medicare Prescription Drug, Improvement and Modernization Act of 200

qaws [65]

Answer:

C. What the program will ultimately cost the federal government

Explanation:

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 was an attempt to make improvements or amendments to the Social Security Act. It radically changed the playing field for private plans participating in the Medicare program by substantially raising monthly payment rates in an effort to stabilize the market and reverse the decline in benefit generosity. It also provided for voluntary prescription drugs under the medicare program. However, the utilization and cost of the program skyrocketed as soon as the funding source was established. It has remained unknown what the program will ultimately cost the federal government, no wonder the current administration under Trump wants to turn it upside down.

3 0

3 years ago

Define customer satisfaction

zvonat [6]

Answer:

Customer satisfaction is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation.

Explanation:

~hope this helps

7 0

3 years ago