1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Stock Company has 2,000 units in beginning work in process inventory, 20% complete as to conversion costs, 23,000 units transfer
ss7ja [257]

Answer:

B. 26,000, 24,000.

Explanation:

Stock Company

Equivalent units

Particulars                 Units       % of Completion           Equivalent Units

                                                   Mat. Conversion          Mat.  Conversion

Transferred Out      23000         100         100           23000      23000

<u>Ending WIP              3000            100       331/3%       3000        999.9= 1000</u>

<u>Total Equivalent units                                                  26000        24000</u>

<u />

The Equivalent units can be calculated either by adding the units transferred out and ending WIP or by adding beginning WIP and units started.

Equivalent units for materials 26000

and Equivalent units for conversion are: 24000

3 0
3 years ago
Suppose you bought 100 shares of IBM at $200 per share. What is the maximum loss if you place a stop-loss order at $165
Lynna [10]

Answer:

$3,500

Explanation:

Placing a stop-loss order at $165 means that the last amount that the stock traded, it had a price of $165 per share.

Based on that, it is evident that each stock has lost $35 when compared to the price at which the stop-loss order was placed and the initial cost per share of $200.

Loss per share=$200-$165=$35

The loss incurred on 100 shares of IBM=loss per share*number of shares owned

The loss incurred on 100 shares of IBM=$35*100

The loss incurred on 100 shares of IBM=$3,500

4 0
3 years ago
Gdp includes the value of all select one:
baherus [9]
The correct answer is A.

GDP consists of all FINAL goods and services, and the only way it can be measured is through market prices.
5 0
3 years ago
what ammendment isthisSixteen-year old Ryan is the captain of the football team. Before the Friday night game, he and his teamma
ad-work [718]
The fourth amendment constitutes this.
7 0
2 years ago
The equality-efficiency trade-off suggests that a. welfare programs stimulate incentives to work. b. inefficiencies result when
soldi70 [24.7K]

Answer:

The correct answer is letter "B": inefficiencies result when incentives to produce are reduced.

Explanation:

Equity-efficiency tradeoff takes place when attempting to optimize the production efficiency, distribution of wealth is diminished. The concept is always linked to moral philosophy because it implies taking about how people organize themselves in the way to produce and share their goods in a fairly. According to this point of view, when there is not enough motivation to produce inefficiencies arise.

7 0
3 years ago
Other questions:
  • The general willingness of consumers to purchase a product at various prices is __________.
    9·1 answer
  • Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and the price of product X (the quantity of
    10·1 answer
  • What do we do in case of Coronavirus.​
    7·1 answer
  • Make a list of entrepreneural activities in your own community?
    12·1 answer
  • Lisa conducts a qualitative study of people's shopping behavior online. She compares her results to that of similar studies and
    5·1 answer
  • Question:
    9·1 answer
  • The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF):Spot...........................
    14·1 answer
  • Is it better to create a product that benefits society or create a product that consumers want?
    5·1 answer
  • Computer Wholesalers restores and resells notebook computers on eBay. It originally acquires the notebook computers from corpora
    14·1 answer
  • Danielle has to send a message to her manager. It is taking her extra time to draft the message because of the number of edits s
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!