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3 years ago

According to classical macroeconomic theory, changes in the money supply affect:_______.

Business

1 answer:

Ivahew [28]3 years ago

6 0

Answer:

Option A. real GDP and the price level.

Explanation:

Option “A” is correct because the change in money supply (say increase) will decrease the interest rate and that will result in an increase in investment and more investment will generate more jobs and more money in consumers’ hands. Thus, they will stimulate the spending and aggregate demand will increase. Resulting in the rise in price and rise in real GDP. therefore, option A is right.

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Rusty Industries has decided to save $50,000 a year for two years and then increase that amount to $80,000 for an additional thr

Gwar [14]

Answer:

FVA5 = [$50,000 * (1.075 -1) / 0.07] + [$30,000 * (1.073 - 1) / 0.07]

Explanation:

Future value is value of asset or security at a later date in future with incorporating the effects of growth rate. Rusty Industries have decided to save $50,000 which will then grow to $80,000 for three years. The year 5 rate is 7% which will be used to compute the future value of savings.

4 0

4 years ago

Metropolitan Water Utility is planning to upgrade its SCADA system for controlling well pumps,booster pumps, and disinfection eq

Licemer1 [7]

Answer:

net wortht -143,280.85

equivalent annual cost $ 24,932.98

Explanation:

We sovle for the present value of each annuity:

The first three years:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 31,000.00

time 3

rate 0.08

$31000 \times \frac{1-(1+0.08)^{-3} }{0.08} = PV\\$

PV $79,890.0066

Then the second phase annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 20,000.00

time 5

rate 0.08

$20000 \times \frac{1-(1+0.08)^{-5} }{0.08} = PV\\$

PV $79,854.2007

NOw, we discount this as it is three years into the future

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $79,854.2007

time 3.00

rate 0.08000

$\frac{79854.2007415617}{(1 + 0.08)^{3} } = PV$

PV 63,390.8391

Total net worth:

79,890.0066 - 63,390.8391 = -143,280.85

The EAC will be the annuity which makes the Present work

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 143,280.85

rate 0.08

time 8

$143280.85 \div \frac{1-(1+0.08)^{-8} }{0.08} = C\\$

C $ 24,932.983

7 0

3 years ago

Selected current year company information follows: Net income $ 16,753 Net sales 720,855 Total liabilities, beginning-year 91,93

a_sh-v [17]

Answer:

the total asset turnover is 2.65 times

Explanation:

The computation of the total asset turnover is shown below;

As we know that

Total assets turnover is

= Net sales ÷ average of total assets

= $720,855 ÷ ($91,932 + $206,935 + $111,201 + $133,851) ÷ 2

= $720,855 ÷ $271,959.50

= 2.65 times

Hence, the total asset turnover is 2.65 times

7 0

3 years ago

The King Corporation has total annual revenue of $800,000; expenses other than depreciation of $350,000; depreciation expense of

tatiyna

Answer:

Results are below.

Explanation:

First, we will determine the net income for tax purposes:

Sales= 800,000

Expenses other than depreciation= (350,000)

Gross profit= 450,000

Depreciation= (200,000)

EBT= 250,000

Tax= (250,000*0.34)= (85,000)

Depreciation= 200,000

Net income= 365,000

Now, for reporting purposes:

Gross profit= 450,000

Depreciation= (130,000)

EBT= 320,000

Tax= (320,000*0.34)= (108,800)

Depreciation= 130,000

Net income= 341,200

8 0

3 years ago

Arista always spends 30 30 % of her income on purses. Assume that her income increases by some percentage while the price of pur

seraphim [82]

Answer:

Elasticity of demand = 1

Explanation:

In the given scenario, if there are any changes in the income of Arista, the percentage of spending is always constant. We can say that income elasticity of demand is always equal to 1 .

Another change in the Arista scenario is that the percentage change in demand is always equal to the percentage change in income.

3 0

4 years ago