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dangina [55]
3 years ago
5

According to the quantity theory of​ money, what must the growth rate of the money supply be given the following​ information? T

he growth rate of real GDP is 1.0​%. The growth rate of nominal GDP is 5.2​%. The nominal interest rate is 5.4​%. The real interest rate is 1.2​%. The money supply​ (M2) is ​$11 comma 438 ​(in billions) According to the quantity theory of​ money, the growth rate of the money supply must be nothing​%. ​ (Round your answer to the nearest tenth.​)

Business
2 answers:
soldi70 [24.7K]3 years ago
8 0

Answer: 5.2%

Explanation:

Given the following ;

Growth rate of real GDP = 1.0%

Growth rate of nominal GDP = 5.2%

Nominal interest rate = 5.4%

Real interest rate = 1.2%

Money supply (M2) = $11,438 billion

According to the quantity theory of money;

M + V = P + Y

Where,

M = growth rate of money supply

V = growth rate of velocity

P = inflation rate

Y = growth rate of real output or GDP

Where inflation rate is the difference between nominal interest rate and real interest rate

Inflation rate(P) = 5.4% - 1.2% = 4.2%

Growth rate of velocity is assumed to be constant according to the quantity theory of money. Therefore change in growth velocity of money = 0.

Then growth rate in money supply is the sum of inflation growth rate and the growth rate of real gross domestic product.

Now we have,

M = P + Y

M = 4.2% + 1.0% = 5.2%

tester [92]3 years ago
6 0

Answer:

Growth rate of money supply is 7.6%.

Explanation:

detailed steps are given below.

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ohn wants to start his own fruit juice and beverage company. He is aware of the large number of competitors in this industry and
Oduvanchick [21]

Answer:

Packaging

Explanation:

Since in the question, it is mentioned that for differentiating the product from its competitors John decided to sell its beverages in containers i.e. specially designed also you keep the juice fresh till 7 days even without refrigeration

So here the John is focused on Packaging component as he wants to make that product i.e differentiate from its competitors also he packaged the product in that way that it looks attractive by adding some special kind designs add on it

Therefore the packaging is the most appropriate option

4 0
3 years ago
Gourmet Shop purchased cash registers on April 1 for $18,000. If this asset has an estimated useful life of five years, what is
algol13

Answer:

$17,400

Explanation:

Given that,

Purchased cash registers on April 1 = $18,000

Estimated useful life of asset = 5 years

Using straight line depreciation method,

Depreciation:

= (Original cost - Salvage cost) ÷ Estimated useful life

= ($18,000 - $0) ÷ 5

= $3,600 per year

Two months depreciation:

= Depreciation per year × (2 ÷ 12)

= $3,600 × (1 ÷ 6)

= $600

Book value of the cash registers on May 31:

= Original cost - Two months depreciation

= $18,000 - $600

= $17,400

7 0
2 years ago
Your portfolio has a beta of 1.75. The portfolio consists of 17 percent U.S. Treasury bills, 31 percent Stock A, and 52 percent
earnstyle [38]

Answer: 2.77

Explanation:

Portfolio Beta is the Weighted Average Beta of all the individual stocks in a portfolio.

Seeing as the other betas and proportions are given, we can plug this into a formula to find out the beta of stock B.

In case you do not see a beta for the U.S. Treasury bills that's fine because beta is a measure of risk and U.S. Treasury bills have NONE so that means that their better is 0.

And if you are wondering what the beta of stock A is, the answer is 1 because that is the beta of the overall market by definition.

Creating a formula therefore we have,

1.75 = 0.17(0) + 0.31(1) + 0.52x

0.52x = 1.75 - 0.31

0.52x = 1.44

x = 2.76923076923

x = 2.77 (2dp)

2.77 is the beta of Stock B.

5 0
3 years ago
Read 2 more answers
Automobile firms can use their inputs to make hybrid cars or "regular" (non-hybrid) cars. If the equilibrium price of hybrid car
77julia77 [94]

Answer: a) an increase in the Equilibrium price of "regular" cars.

Explanation:

It is stated that the automobile companies use their inputs to make either the <em>hybrid cars</em> or the <em>regular cars</em>.

If the price of the <em>Hybrid cars</em> rises sharply, Automobile companies will make more <em>Hybrid cars</em> so as to take advantage of the situation and make more profit.

This would reduce the amount of inputs that they have available for <em>regular cars</em> and so they will make less <em>regular cars. </em>

As this supply of <em>regular cars</em> decreases,the supply curve will shift to the left and the price will increase to cater for this reduction in supply.  

7 0
3 years ago
THE SUBJECT IS ACTUALLY SCIENCE HOW DO WE CLASSIFY THE BIODIVERSITY OF LIVING THINGS
Gnesinka [82]

Answer:

can be described and measured at three different levels: species, genetic, and ecosystem diversity. Species diversity refers to the number of different species in an ecosystem or on Earth as a whole.

Explanation:

5 0
3 years ago
Read 2 more answers
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