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irina [24]
3 years ago
12

The Fed increased the supply of US dollars at an average rate of 6 percent per year over the 1980-2005 period. Based on the theo

ry of production capacity, if the Fed had instead increased the money supply at the rate of 7 percent per year during that period, given other policies: (Select all that apply.)
Business
1 answer:
Charra [1.4K]3 years ago
4 0

Answer:

These are the options for the question:

A. The average inflation rate during 1980-2005 would have been one percentage point higher than it actually was in that period.

B. The economy would have enjoyed a much higher level of output in the mid-2000s.

C. The price level in 2005 would have been about 28 percent higher than what it actually reached in that year.

D. The output of the economy in the mid-2000s would not have been very different from the levels it actually reached.

And this is the correct answer:

A. The average inflation rate during 1980-2005 would have been one percentage point higher than it actually was in that period.

Explanation:

According to the production capacity theory, if the money supply is increased, but the quantity of output is not, or is not increased at the same rate, then, inflation will set in.

In this case, the question is telling us that the Fed would have increased the money supply by one percentage point, but output (GDP growth) would have stayed the same.

For this reason, all else being equal, this higher amount of money supply would have simply created more inflation.

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e payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing
Harman [31]

Answer:

Invest

invest

Explanation:

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing

firm a can either earn20 or 70 if it advertises or 5 or 50 if it does not advertise. this is the same for firm B.

Thus the option that would yield the highest payoff is for both firms to advertise.

this is an example of prisoners dilemma

7 0
2 years ago
Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000. The accountant preparing the
Travka [436]

Answer:

The correct entry is to reverse the entry on December 3rd

Dr Salaries and Wages expenses of $27,000

Cr Salaries and Wages payable of $27,000

Explanation:

During the time of the accrued entry, which is on December 31st

the company registered

Dr Salaries and Wages PAYABLE of $27,000

Cr Salaries and Wages EXPENSES of $27,000

It was just an accrued entry to be able to identify the expenses to the balance sheet, but currently on the original expenses on January 3rd, the entry is reverse, then the real or main expenses is recorded in the balance sheet.

Dr Cash of $47,000

Cr Salaries and Wages EXPENSES of $47,000

7 0
3 years ago
A $1000 bond with a coupon rate of 6.2% paid semiannually has eight years to maturity and a yield to maturity of 8.3%. If intere
ohaa [14]

Answer:

The price of the bond will be $879

Explanation:

Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:

According to given data

Coupon payment = C = $1,000 x 6.2 = $62 annually = $31 semiannually

Number of periods = n = 2 x 8 years = 16 periods

Current Yield = r = 8.3% / 2  = 4.15% semiannually

Price of the Bond = $31 x [ ( 1 - ( 1 + 4.15% )^-16 ) / 4.15% ] + [ $1,000 / ( 1 + 4.15% )^16 ]

Price of the Bond = $31 x [ ( 1 - ( 1 + 0.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1 + 0.0415 )^16 ]  

Price of the Bond = $31 x [ ( 1 - ( 1.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1.0415 )^16 ]  

Price of the Bond = $521.74 + $357.26   = $879

7 0
3 years ago
Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
sesenic [268]

Answer:

educational background

4 0
3 years ago
Read 2 more answers
Which questions can help someone who is starting to think about personal vision and goals?
Reil [10]

6/66

born with

talents

things you like to do for fun, such as cooking, reading, or painting.

Some people will share your hobbies, but others might not find those things interesting at all. The skills you learn from your hobbies can give you an advantage in careers in those fields.

You might also get to know other people who share your hobby, and this could help you build a career in that field.

7 0
3 years ago
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