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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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Answer:

B. Ahrens will respond aggressively because of the high market commonality between Hilliard and Ahrens

Explanation:

Base on the scenario been described in the question the question, the one that is true is that Ahrens will respond aggressively because of the high market commonality between Hilliard and Ahrens. And because Hilliard, the number two firm in the industry, has undertaken a major strategic attack upon Ahrens, the market leader, by introducing a new nutrition supplement product which makes Ahrens to react that way.

4 0
3 years ago
One important way in which banks make economic growth possible is by
solong [7]

Answer:

Here is the full question:

<em>One important way in which banks make economic growth possible is by :</em>

<em>A)  selling savings bonds. </em>

<em> B)  cashing payroll checks. </em>

<em> C)  lending money to business startups. </em>

<em> D)  offering checking and savings accounts</em>

Answer is C).

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However, loans are the primary source of income for all banks, as loans are the bank products that give the bank a monthly interest rate, which is very lucrative in the long run.

8 0
3 years ago
Financial accounting provides a historical perspective, whereas management accounting emphasizes ________.
Lady_Fox [76]

Financial accounting provides a historical perspective, whereas management accounting emphasizes (A) the current perspective.

<h3>What is management accounting?</h3>
  • Management accounting can be defined as the provision of financial and non-financial decision-making information to managers.
  • In other words, management accounting aids directors in making decisions within an organization.
  • This is also referred to as cost accounting.
  • This is the method for distinguishing, examining, deciphering, and communicating data to managers in order to help them achieve business objectives.
  • The information gathered includes all accounting fields that educate the administration on business tasks associated with the organization's financial expenses and decisions.
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Therefore, financial accounting provides a historical perspective, whereas management accounting emphasizes (A) the current perspective.

Know more about management accounting here:

brainly.com/question/14727215

#SPJ4

4 0
2 years ago
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Answer: web community

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Web community is also called an internet community, it is a virtual community whose members interact with each other primarily through the Internet.

7 0
4 years ago
The difference between your sales and your cost of goods sold is known as your what
Anettt [7]

Answer:

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Explanation: its just right

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