All categories

3 years ago

___ comes from increases in the money supply.

Business

2 answers:

vagabundo [1.1K]3 years ago

8 0

Answer:

Consumer Price Index (CPI)

Explanation:

1- By definition CPI is the weighted average of a consumer's basket volume for any purchase service or good. When money supply increases, GDP increases, and the spending of a customer increases. Hence resulted in increased CPI.

2- Interest rate decreases when money supply increases

3- Inflation is by definition a steady increase in the money supply if a country. So one can be replaced by another. Inflation does not come from money supply increase, it is in fact money supply increase

pishuonlain [190]3 years ago

6 0

Answer:

The correct answer is monetary inflation.

Explanation:

The increase in money supply causes monetary inflation to rise. This is because, when making an expansionary monetary policy, that is, increasing the amount of money in the economy, prices will rise due to higher demand for goods and services. For example, in incurring deficits, the government must sell bonds to finance its debt, increasing the amount of money in the economy and thereby raising prices. Thus, the rise in currency culminates in rising prices and thus inflation.

You might be interested in

2. Lereve Company has recorded the following information about the results of its operations for the fourth quarter: Sales reven

Pepsi [2]

Answer:

Lereve Company

Segmented Income Statement for the fourth quarter:

Total Company Western Division Eastern Division

Sales revenues $200,000 $80,000 $120,000

Variable cost of sales 60,000 30,000 30,000

Contribution $140,000 $50,000 $90,000

Fixed costs:

Common $100,000 $25,000 $75,000

Traceable 50,000 20,000 30,000

Net Income (Loss) ($10,000) $5,000 ($15,000)

The results show that the Eastern Division made a net loss of $15,000 and the Western Division raked in a net income of $5,000, which resulted in the company-wide net loss of $10,000. This loss could be traced to the allocated common fixed costs of the division, because its contribution to fixed costs was substantial and better than the Western Division's.

Explanation:

When the results of the operations of a divisional company like Lereve Company are prepared in segmental form, the performance pictures become clearer. Management is enabled to focus on the segments or the factors that are generating the loss to the company. Perhaps, as in this case, the problem may not be with the division, but the allocation of fixed costs to the divisions. It can still be traced to the company as a whole, since it is generating much more fixed costs than it could afford from its revenue.

3 0

3 years ago

Check my work Check My Work button is not enabled Item 4 Item 4 1 points Item Skipped The following data from the just completed

Trava [24]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Sales $ 660,000

Direct labor cost $ 86,000

Raw material purchases $ 135,000

Selling expenses $ 109,000

Administrative expenses $ 46,000

Manufacturing overhead applied to work in process $ 205,000 Actual manufacturing overhead costs $ 225,000

Inventories Beginning Ending Raw materials $ 8,200 $ 10,800

Work in process $ 5,000 $ 20,600

Finished goods $ 74,000 $ 25,900

1) cost of goods manufactured:

Beginning Work in process $ 5,000

Inventories Beginning Raw materials $ 8,200

Raw material purchases $ 135,000

Ending inventories Raw materials $ 10,800 (-)

Direct labor cost $ 86,000

Manufacturing overhead applied to work in process $ 205,000

Ending Work in process $ 20,600 (-)

Total= $407,800

2) Cost of goods sold:

Beginning Finished goods $ 74,000

cost of goods manufactured $407,800

Ending finished goods $ 25,900 (-)

Underapplied overhead= 20,000 (+)

Total COGS= $475,900

3) Income statement:

Sales= 660,000

COGS= 475,900

Gross income= $184,100

Selling expenses $ 109,000

Administrative expenses $ 46,000

Net operating income= $29,100

6 0

3 years ago

On January 1, 20X4, Polar Corp. paid $104,000 for $100,000 par value, 9% bonds of Seal Corp. Seal had issued $300,000 of the 10-

Eddi Din [679]

Answer:

$14,000

Explanation:

Amount of interest expense = [(Bond issued by 'S' company x 9%) - Amount of

premium x (unsold bonds / Bonds issued)]

= (300,000 x 0.09) - 60000/10 x 200,000/300,000

= (27,000 - 6000) x 0.66667

= 21,000 x 0.66667

= $14,000

7 0

3 years ago

When the market interest rate rises above the coupon rate for a particular quality of bond, the "current yield": will be below t

meriva

Answer: will be above the coupon rate

Explanation:

The Coupon rate is a fixed rate that a bond issuer pays to it's bond holders. The <em>Current Yield</em> however is calculated by dividing the Coupon payment by the Price of the bond.

When Market interest rises above the Coupon Rate, the price of the bond decreases in the market and vice versa.

Because the price of the bond is now less and it is the divisor of the Coupon rate to get the Yield, it will give a higher percentage which will be more than the Coupon rate.

4 0

3 years ago

Which of the following equals the amount of public saving?

ollegr [7]

Answer:

The answers are:

A) Government tax revenue minus the sum of government purchases and transfer payments to households.
B) a budget surplus

Explanation:

The formula to calculate public saving is (T - G - TR).

T stands for all the government revenue through taxes and tariffs.
G stands for all the government spending including purchase of goods and provision of services.
TR stands for all the government transfers including payments to individuals and households through social programs (including social security).

Budget surplus is the same as public saving.

3 0

3 years ago