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Delicious77 [7]
2 years ago
15

In a macroeconomic context, choose the best definition for the term velocity. The rate at which the aggregate price level increa

ses. The rate at which money circulates through an economy. The speed of capital accumulation. The rate at which GDP increases in a year. The rate at which the Federal Reserve increases or decreases the money supply.
Business
1 answer:
N76 [4]2 years ago
7 0

Answer:

The rate at which money circulates through an economy.

Explanation:

In Macroeconomics, the term velocity refers to the speed at which money circulates in an economy, and it is a variable in a fundamental macroeconomic equation, the quantity theory of money equation:

M x V = P x T

Which states that the price of goods and services is equal to the amount of money in an economy, or its money supply (M) multiplied by the Velocity of circulation of money, which is in turn equal to price (P) multiplied by the number of transactions (T).

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A family spends $56,000 a year for living
vovangra [49]

If a  family spends $56,000 a year for living expenses. If prices increase 5 percent a year for the next four years, the amount that the family need for their annual living expenses after four years is $68,068.35.

<h3>Annual living expenses</h3>

Using this formula

Amount=Amount spent× (1+ rate)^ Number of years

Let plug in the formula

Amount=$56,000× (1+0.05)^4

Amount=$56,000× (1.05)^4

Amount=$68,068.35

Therefore If a  family spends $56,000 a year for living expenses. If prices increase 5 percent a year for the next four years, the amount that the family need for their annual living expenses after four years is $68,068.35.

Learn more about Annual living expenses here:brainly.com/question/26383826

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8 0
1 year ago
Suppose Capital One is advertising a 60​-month, 5.89 % APR motorcycle loan. If you need to borrow $ 9 comma 400 to purchase your
xz_007 [3.2K]

Answer:

My Monthly payment will be $181.25

Explanation:

A loan provide funds for acquisition of asset and for investment purposes and its allows the arrangement for flexible repayments throughout the loan period based on terms agreed between the lender and borrower.

Following Formula used to calculate the installment payment.

Loan  = Payment x \frac{(1-(1+r)^-n)}{r}

9,400 = Payments x   \frac{(1-(1+0.0589/12)^-60)}{0.0589/12}

9,400 = Payment x 51.863

Payments = 9,400 / 51.863

Payments = 181.25

8 0
3 years ago
A bond with 25 years to maturity, 7% coupon, quoted on a 6.25% basis is callable in 10 years at 103, 15 years at 102, and 20 yea
jarptica [38.1K]

Answer: 10 years to call

Explanation:

Maturity period = 25 years

Coupon rate = 7%

6.25% basis is,

  • Callable in 10 years at 103
  • Callable in 15 years at 102
  • Callable in 20 years at par

This bond is considered as premium bond. Therefore, in case of premium bonds, Yield to call will be lower than the yield to maturity. Here, the question is which call date should be utilized. According to the rule of thumb, it states that always use the term that is nearest to the whole call date.

Hence, on the customer's confirmation, the dollar price quoted must be based on 10 years to call.

8 0
3 years ago
Wise consumers always understand their needs and wants before they buy.<br> a. True<br> O b. False
Ymorist [56]
False
Hope this helps
6 0
3 years ago
Your friend sells specialty coffee on her website, and she tells you she would not have succeeded without her strong relationshi
amm1812

A sociologist might say that this is an example of how economic action is <u>embedded in</u> social relationships.

<u>Explanation:</u>

3 0
2 years ago
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