1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
FrozenT [24]
3 years ago
9

Suppose that the money supply and the nominal GDP for a hypothetical economy are $96 bilion and $336 bilion, respectively. (In p

art a round your answer to 1 decimal place. In part c enter your answer as a whole number.)a. What is the velocity of money?b. How will households and businesses react if the central bank reduces the money supply by $20 billion?
i. Households and businesses will increase spendingii. Households and businesses will not react.iii. Households and businesses will reduce spending.c. By how much will nominal GDP have to fall to restore equilibrium, according to the monetarist perspective?
Business
1 answer:
Alina [70]3 years ago
7 0

Answer:

V = 3.5  (1 dollar circulates 3.5 times in a year)

In short term – Reduction of aggregate demand and real output

In long term – reduction of wages and increase of real output of firms

Nominal GDP will fall by $20 bilion

Explanation:

Equation of monetisation =  

Total money in circulation = Total money demanded/total output

Money Supply * Money Velocity = Price Level * GDP

V = PY/M  

Substituting the given values, we get –  

V = 336/96  

V = 3.5  

This indicates 1 dollar circulates 3.5 times in a year

In short term – Reduction of aggregate demand and real output

In long term – reduction of wages and increase of real output of firms

Nominal GDP will fall by $20 bilion

You might be interested in
Concord Company pays cash dividends of $670. The entry for this transaction will include a debit of $670 to
kow [346]

Answer:

c. Dividends

Explanation:

Whenever, dividends are recorded as a liability then that amount is charged against retained earnings, but the final entry for payment of dividend =

Dividend A/c Dr.         $670

To Cash A/c.                           $670

Also at the time of recording as an expense, entry will be

Retained Earnings A/c Dr.       $670

                  To Dividend A/c                $670

Since retained earning balance will be reduced and finally cash balance will also be reduced.

Therefore, entry for payment will include debit to

c. Dividends

4 0
3 years ago
The Charade Company is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable fac
In-s [12.5K]

Answer:

the total budgeted factory overhead for November is : 2) $110,000.

the budgeted direct labor hours for December must be : 3) 9,000 hours.

total budgeted factory overhead per direct labor hour is : 1) $14.38

Explanation:

To determine the budgeted factory overhead for November, prepare a budgeted factory overhead for November as follows :

<u>November</u>

Budgeted Variable factory overhead ($5.00 × 7,000 hours)  = $35,000

Budgeted Fixed factory overhead                                             = $75,000

Total budgeted factory overhead                                              = $110,000

<u>December</u>

Total Cash Disbursements                                                         = $105,000

Less Budgeted Fixed factory overhead  ($75,000 - $15,000) =  $60,000

Budgeted Variable factory overhead                                        =   $45,000

Therefore, budgeted direct labor hours = $45,000 / $5.00

                                                                  = 9,000 hours.

<u>December</u>

Budgeted Variable factory overhead ($5.00 × 8,000 hours)  = $40,000

Budgeted Fixed factory overhead                                             = $75,000

Total budgeted factory overhead                                              = $115,000

Therefore, total budgeted factory overhead per direct labor hour = $115,000 / 8,000 hours = $14.375

Which is $14.38 (rounded)

                                                               

3 0
3 years ago
My carrots have grown sprouts, are they still good?
Nataliya [291]
Yes, they are. You can just cut off the end and use it like nothing happened! :)

8 0
3 years ago
Green Landscaping Inc. is preparing its budget for the first quarter of 2017. The next step in the budgeting process is to prepa
Agata [3.3K]

Answer:

a-1. Total cash collection for the Quarter Ending March 31, 2022 = $336,000

a-2. Total cash payment for the Quarter Ending March 31, 2022 = $43,400

b-1. Account receivable balance = $68,000

b-2. Account payable balance = $7,200

Explanation:

Note: This question is not complete and contains different dates (2017 and 2022). The complete question is therefore provided and 2022 is picked as the date before answering the question. See the attached pdf file for the complete question with 2022 as the date.

The explanation of the answer is now given as follows:

a-1. Schedule of expected cash collections from clients.

Note: See part a-1 of the attached excel file for the Schedule of expected cash collections from clients.

From the attached excel file, we have:

Total cash collection for the Quarter Ending March 31, 2022 = $336,000

a-2. Schedule of expected payments for landscaping supplies.

Note: See part a-2 of the attached excel file for the Schedule of expected payments for landscaping supplies.

From the attached excel file, we have:

Total cash payment for the Quarter Ending March 31, 2022 = $43,400

b. Determine the following balances at March 31, 2022:

b-1. Accounts receivable

Account receivable balance = ($120,000*10%) + ($140,000*40%) = $68,000

b-2. Accounts payable

Account payable balance = $18,000*40% = $7,200

Download xlsx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
3 0
2 years ago
Look at the following email (attached). Name two good email netiquette practices used in the
Kipish [7]

Two good email etiquettes practices used in email are:

  • Inserting a Subject
  • Keep the email short and restricted to three paragraphs.

Two bad email etiquettes used in the email above are:

  • Indiscriminate use of the exclamation mark
  • Discussing personal issues in a formal email.

<h3>What are email etiquettes?</h3>

The use of acceptable language, standards, and politeness in an email is referred to as email etiquette. Business emails often need formal language as well as rigorous respect to appropriate grammar and spelling.

Five useful E-mail Etiquette are:

  • Address your addressee appropriately. Check, double-check, and triple-check that you have the right spelling of the recipient's name and title.
  • Proper greetings and closing statements should be used.
  • Format correctly.
  • Avoid using ALL CAPS.
  • Large files should be compressed.

Learn more about email etiquette:
brainly.com/question/11498233
#SPJ1

8 0
1 year ago
Other questions:
  • "press firmly to learn what your breasts feel like. a firm ridge in the lower curve of each breast is normal." this step for bse
    14·1 answer
  • Two currently owned machines are being considered for the production of a part. The capital investment associated with the machi
    13·1 answer
  • When a manager assigns someone to work one-on-one with a new employee and show the new employee how the work is done, the traini
    10·1 answer
  • When using the _____ projective technique, participants are presented cards containing various scents, textures, and sounds, and
    13·2 answers
  • orrugated Company currently produces cardboard boxes in an automated process. Expected production per month is 40,000 units. The
    10·1 answer
  • Match each situation with the benefits that professional organizations provide
    13·1 answer
  • A company acquires a 25% investment in another corporation. The reporting of this investment depends primarily onThe percentage
    14·1 answer
  • 1] Using the business idea shown in the extract, discuss in a practical way, how FIVE (5) different techniques of
    8·1 answer
  • During the current year, Corporation G received $30,000 in dividends from a 60%-owned taxable domestic corporation. G received n
    5·1 answer
  • Because of the increased bulkiness of the anterior abdomen and the change in a pregnant woman's center of gravity, what type of
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!