Answer: A direct relationship
Explanation: The link or relationship between money supply and inflation rate : In normal economic circumstances, if the money supply grows faster than real output it will cause inflation. In a depressed economy (liquidity trap) this correlation breaks down because of a fall in the velocity of circulation. This is why in a depressed economy Central Banks can increase the money supply without causing inflation. This occurred in the US between 2008-14
However, when the economy recovers and velocity of circulation rises, increased money supply is likely to cause inflation.
In other words ,If you are Increasing the money supply faster than the growth in real output will cause inflation. The reason is that there is more money chasing the same number of goods. Therefore, the increase in monetary demand causes firms to put up prices.
Answer:
True
Explanation:The Dividend pay out ratio of a company is the ratio of the total devidend paid to shareholders in relation to the net income earned by the company during a financial year.
Fixed assets are assets purchased in order to be used on the long term,theses types of assets are not usually converted in the short term for money,fixed assets includes buildings,land etc.
Answer:
It would decrease by $7,504.
Explanation:
The current ratio determines liquidity of a company. The current ratio is calculated by dividing total current assets from total current liabilities. The change in inventory will affect the current ratio of the company. In the consolidated financial statements the value of inventory is decreased due to exchange rate fluctuations. The change in value of inventory will affect the amount reported in the balance sheet of the parent and will ultimately result in reduction of current ratio.
Answer:
$83.4
Explanation:
Under FUTA, only the first $7000 earning per year will be taxed. Any amounts above $7000 will be tax-exempt.
For Michael, the tax will be calculated as follows.
for the$11200 earned in Dawson company
=0.6% x $7000
=0.06/100 x 7000
=0.006 x 7000
=$42
Amount earned working at McBribe
=0.06% x 6900
=0.006 x $6900
=$41.4
Total to be paid by the two companies
=$42 + $ 41.4
=$83.4
The BEST way to handle the situation is to work with central warehouse to arrange a predictable delivery time. Whereas, the WORST way to handle the situation is to change the delivery system so that goods are delivered only once a month.
So, if you are the manager of a retail store, and the shipments of the products you sell arrive once a week from the central warehouse you need to pull a couple of your workers from inside the store who can unload the shipments. As the truck arrives any time in a day, this creates problem as the workers are not availabe whenever the shipment arrives.
The best way through which one can handle the situation is by working with central warehouse to get appropriate information on the delivery date and so that the workers are made available accordingly. Whereas, the worst way to handle this situation is by changing the delivery system.
Hence, options 2 and 3 are correct.
To learn more about delivery system here:
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