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Mumz [18]
3 years ago
12

Suppose the real GDP of this economy grows at an annual rate of 5%. Assume that the central bank would like to keep the inflatio

n rate at 2% per year. If the velocity of money remains constant, the central bank can achieve its goal by pursing an annual money growth rate of____________-.
Business
1 answer:
evablogger [386]3 years ago
7 0

Answer:

The correct answer is 7%.

Explanation:

The real GDP of an economy is said to be increasing at an annual rate of 5%.  

The inflation rate is kept low at 2%.  

The velocity of money is assumed to be constant.  

In this situation, the annual money growth rate will be equal to the sum of the inflation rate and rate of growth of real GDP.  

Annual money growth rate

= Inflation rate + Real GDP growth rate

= 2% + 5%

= 7%

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melamori03 [73]

Answer:

B. organization architecture

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Organization architecture refers to one of the most comprehensive terms in organizational sciences. It includes a thorough organizational structure with defined roles and processes, taking into consideration the human capital. Also, it describes the existing control mechanisms that ensure that processes are well maintained, as well as the incentives that drive motivation and set organizational goals.

8 0
3 years ago
Suppose the nominal annual interest rate on a two-year loan is 8 percent and lenders expect inflation to be 5 percent in each of
Kisachek [45]

Answer:

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5 0
3 years ago
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slava [35]

Answer:

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D

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3 0
3 years ago
Would you rather be a juvenile prosecutor or defense attorney? Explain your decision.
balandron [24]

Answer:

<u>a defense attorney instead</u>

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