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Arada [10]
3 years ago
13

The classical dichotomy is useful for analyzing the economy because in the long run nominal variables are heavily influenced by

developments in the monetary system, and real variables are not. True or false?
Business
1 answer:
Contact [7]3 years ago
7 0

Answer:

The answer is: True

Explanation:

First of all, the classical dichotomy in economics assumes that real variables of the economy such as output of goods and services and real interest rates are not influenced by what happens to their nominal counterparts, such as the monetary value of output and nominal interest rate.  It doesn´t consider inflation or the nominal supply, in other words money supply is neutral in the economy (because its value is adjusted to inflation).

The real problem with this theory, at least in the short run, is that in real life money supply, interest rates and inflation do affect the GDP of a country. When the money supply of an economy is increased then aggregate demand also increases. More money equals more demand. That happens because the prices of goods and services doesn´t adjust as fast as a change in the money supply. Also this theory doesn´t consider the monetary circuit theory about money being "created" by the banking system every time a loan is made.

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A company has total revenue of $50,000,000, cost of sales of $40,000,000, operating expenses of $5,000,000, and financing costs
bekas [8.4K]

Answer:

$30

Explanation:

Earning per share is calculated dividing Earning for the year excluding preferred dividend by outstanding number of shares.

Formula for EPS is as follow:

Earning Per share = ( Net Income  - Preferred Dividend ) / Outstanding Numbers of shares

We need to calculate the net Income, which is calculated as below

Net Income = Revenue - Cost of Goods Sold - Operating Expenses - Financing costs = $50,000,000 - $40,000,000 - $5,000,000 - $2,000,000

Financing costs = $3,000,000

Placing Values in the formula of EPS

EPS = $3,000,000 / 100,000 shares = $30

8 0
3 years ago
A firm has the following accounts and financial data for 2007:
Oksi-84 [34.3K]

Answer:

The correct answer is $302.40.

Explanation:

According to the scenario, the computation can be done as:

To calculate firms' earning first we less cost of goods and total operating expenses from sales revenue:

= $3,060 - $1,800 - 600

= $660

Now we deduct the interest expense, then

= $660 - $126

= $534

Now we deduct tax rate, then

= $534 × $213.60    ( $534× 40%)

= $320.40

Now we finally deduct the dividends to get the firm's earning to common shareholder's, then

= $320.40 - 18

= $302.40

Hence, the firm's earning to common shareholder's is $302.40.

5 0
3 years ago
Berry, the seller, wants Paul, the broker, to change from a single agency relationship to a transaction broker. Paul agrees to d
Scorpion4ik [409]

Answer:

Before the listing agreement is signed.

Explanation:

A listing agreement is a contract between a property owner and a real estate broker asking the real estate broker to get a buyer for his or her property. The property owner implements the listing agreement so as to empower the real estate broker to act in the capacity of the agent to the owner in the course of trying to sell the property. Generally certain commission is paid to the real estate broker by the property owner.

8 0
3 years ago
Kyoko is managing a team of people who are working on a critical project. she wants to use positive reinforcement, but the days
Harrizon [31]

Kyoko needs to find the time.

When people’s days are busy they need to prioritize their tasks and do the ones that are the most important. Kyoko needs to make the use of positive reinforcement one of their priorities for the day. Another thing to consider is doing positive reinforcement while doing something else. For instance, praising the quality of someone’s work while doing another task.

5 0
3 years ago
Butte sold a machine to a machine dealer for $50,000. Butte bought the machine for $55,000 several year ago and has a claimed $1
pishuonlain [190]

Answer:

c. $7,500 ordinary gain  

Explanation:

Depreciated value of Machine = $55,000 - $12,500  

                                                   = $ 42,500

Sale price of Machine = $ 50,000

Gain on sale of Asset = $ 50,000 - $ 42,500

                                    = $ 7,500

Therefore, The amount and character of Butte's gain or loss is $7,500 ordinary gain.  

6 0
3 years ago
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