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Alla [95]
3 years ago
15

B. Federal Reserve Chair Jerome Powell has hinted that a long run inflation rate target of 2% is the guide he uses for monetary

policy in the long run Appealing to the Quantity Theory of Money, Rep. Doro Green advises Chair Powell to therefore set a money growth rate target of 2% to achieve this long run inflation goal. i.) If the Chair takes the Representative's advice, he_________achieve his long run inflation goal because__________ A. Will not; economic growth is positive in the long run. B. Will not; velocity growth is positive in the long run. C. will real economic growth is positive in the long run. D. Wil; velocity growth is positive in the long run.Why might we have reason to believe that Representative Green received the backing of those in the banking industry in the latest election? Explain with reference to your conclusion above about the results of Chair Powell's taking Representative Green's advice. ii) If Chair Powell takes Representative Green's advice, inflation in the long run will bethan expected, transferring wealth from :________.A. Lower; creditors to debtors B. Higher; debtors to creditors C. Higher; creditors to debtors D. Lower; debtors to creditors
Business
1 answer:
melamori03 [73]3 years ago
6 0

Answer:

will, real economic growth is positive in the long run.

Lower; creditors to debtors.

Explanation:

Theory of money is the economical view that the inflation is dependent on the money supply in the country. When the money supply is higher then inflation will be lowered and purchasing power of the consumer will be high. When inflation is set to a minimum possible rate then real economic growth will be positive in the long run and negative in the short run.

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A ______ exists when there is a substantial difference between an expected condition and the actual condition.
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Managers who subscribe to ____________ believe that people are naturally lazy and uncooperative and must therefore be either pun
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3 0
1 year ago
A worker has been struggling at her job. She has worked long hours for the
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6 0
3 years ago
Hi-Tek is a young start-up company. No dividends will be paid on the stock over the next 9 years, because the firm needs to plow
Elza [17]

Answer:

The price of the stock today is $16.83

Explanation:

The current price per share can be estimated using constant growth model of  the DDM. The price per share can be calculated using the following formula,

P0 = D1 / r - g

To calculate the price today, we use the dividend expected for the next period. Thus, using the dividend that will be paid at t=11 or D11, we can calculate the price of the stock at t=10. We further need to discount this price using the required rate of return for 10 years to calculate the price of the stock today.

P10 = 6 * (1+0.04)  /  (0.14 - 0.04)

P10 = $62.4

The price of the stock today will be,

P0 = 62.4 / (1.14)^10

P0 = $16.83

8 0
2 years ago
Read 2 more answers
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