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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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If you case a car accident, which type of insurance will require you to pay the least out of pocket?
maria [59]
Uninsured motorists. Make sure you have it.
7 0
3 years ago
Sheridan Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is avai
il63 [147K]

Answer:

Closing inventory - $10,160

Costs of goods sold - $9,600

Explanation:

Under the LIFO Method, the cost of good sold equals to

= April 23 units × cost per unit + Remaining units × cost per unit

= 300 units × $22 + 150 units × $20

= $6,600 + $3,000

= $9,600

Since the firm has sold 450 units, so out of which 300 units sold at a price of $22 and the remaining 150 units sold at a price of $20

The ending inventory equals to

= Remaining units × cost per unit + April 1 × cost per unit

= 270 units × $20 + 280 units × $17

= $5,400 + $4,760

= $10,160

Since on April 23, the 420 units were purchase, out of which 150 units are transferred to the cost of good sold and the remaining units 270 units at $20 is transferred to the ending inventory

8 0
2 years ago
Milo decides to invest $1,500 in a savings account every year at the beginning of the year for 10 years. Assuming an interest ra
irina1246 [14]

Answer:

$22,175.40

Explanation:

For this question, we use the Future value formula that is shown on the attachment below:

Provided that,  

Present value = $0

Rate of interest = 7%

NPER = 10 years

PMT = $1,500

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after solving this, the future value is $22,175.40

Therefore, the amount at the end of the year is $22,175.40

4 0
3 years ago
For a business that uses the allowance method of accounting for uncollectible receivables:
Yuri [45]

Answer:

The Journal entries to record the given transactions would be:

Account Title                                                  Debit         Credit

(1) Uncollectible Accounts Expense              18,600

    Allowance for Doubtful Accounts                               18,600

     ($600 + $18,000)

(2) Allowance for Doubtful Accounts              350

    Accounts Receivable—Fronk Co.                                350

(3)  Accounts Receivable—Fronk Co.             200

     Allowance for Doubtful Accounts                               200

     Cash                                                            200

     Accounts Receivable—Fronk Co.                                200

(4)  Cash                                                            400

     Allowance for Doubtful Accounts*            200

     Accounts Receivable—Dodger Co.                             600

($600 - $400)*

3 0
3 years ago
An increasing number of companies are considering their relationships with customers as financial assets. Such firms measure suc
sladkih [1.3K]

Answer:

CUSTOMER EQUITY.

Explanation:

Customer relationship management is an approach to maintain a company's interaction with current and potential customers. It mainly focuses on customer retention and driving sales growth.

Customer equity is a result of customer relationship management. It is the total of discounted lifetime value of all the firm's customers. In other words, the more loyal a customer, the more the customer equity.

The theory of Customer Equity can be defined as the value of the potential future revenue generated by a company’s customers in the entire lifetime of the firm.

Therefore, an increasing number of companies are considering their relationships with customers as financial assets. Such firms measure success by calculating the value of their CUSTOMER EQUITY.

3 0
3 years ago
Read 2 more answers
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