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Alenkinab [10]
3 years ago
15

The quantity of money is ​$5 ​trillion, real GDP is ​$10 ​trillion, the price level is 0.9​, the real interest rate is 3 percent

a​ year, and the nominal interest rate is 7 percent a year. Calculate the velocity of​ circulation, the value of M​ × V​, and nominal GDP.
Business
1 answer:
andreyandreev [35.5K]3 years ago
4 0

Answer:

(a) 2

(b) $10 trillion

(c) $0.4 trillion

Explanation:

Given that,

Quantity of money = ​$5 ​trillion

Real GDP = ​$10 ​trillion

Price level = 0.9​

Real interest rate = 3 percent

Nominal interest rate = 7 percent

Nominal interest rate = Real interest rate + Inflation rate

7% = 3% + Inflation rate

4% = Inflation rate

Velocity of​ circulation:

= GDP ÷ Total money supply

= ($10 × 1) ÷ $5

= 2

M × V = $5 ​trillion × 2

          = $10 trillion

Nominal GDP = Real GDP × Inflation

                       = ​$10 ​trillion × 4%

                       = $0.4 trillion

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elena55 [62]

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2 years ago
Compute and select the correct common-size percent for each account title.Total Assets is $700,000 Accounts Payable is $75,000 B
Arisa [49]

Answer and Explanation:

The computation for each corrected common-size percent for each account is shown below:

Particulars             Amount                  Percentage

Total assets           $700,000                    100%

Accounts payable $75,000                      10.71%

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Bonds payable      $225,000             32.14%

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Retained earnings $100,000             14.29%

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3 0
3 years ago
On December 31, 2020, the Bennett Company had 100,000 shares of common stock issued and outstanding. On July 1, 2021, the compan
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Answer:

$5.31

Explanation:

Earnings per share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks Outstanding

<em>where,</em>

<u>Earnings Attributable to Holders of Common Stock is :</u>

Net Income                                                                       $650,000

Less Preference Stock dividend                                       ($71,000)

Earnings Attributable to Holders of Common Stock      $579,000

<em>and</em>

<u>Weighted Average Number of Common Stocks Outstanding :</u>

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Weighted Average Number of Common Stocks Outstanding    109,000

therefore,

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The 2021 basic earnings per share is $5.31.

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topjm [15]

Answer:

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