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lyudmila [28]
2 years ago
14

You have been tasked with advising the dictator of a nation over what he should do to increase the countries GDP. He suggests pr

inting money and increasing the growth rate of the money supply. He wants to give this newly printed currency to his soldiers and best political supporters. You know this will not increase GDP in the long run because:
I. Money is neutral
II. Increasing the growth of the money supply only causes inflation in the long run
III. He would only increase GDP in the long run if he distributed the money equally to all citizens
IV. He would only increase GDP in the long run only if he printed a large enough sum of money

a. I and II only I
b. II, and III only
c. I, II, III, and IV
d. III only
Business
1 answer:
Yanka [14]2 years ago
7 0

Answer: a. I and II only

Explanation:

Money is neutral which means that even if you change to supply of money in an economy, it will not translate to an increase in GDP because only the nominal values of things will change (as a result of inflation) while the real values of things like GDP will remain the same.

Increasing the growth of money supply by printing money would also cause inflation in the long run because the money will lose its value like goods do when their supply is increased even though demand does not. A weaker currency needs more units to buy a good which is where the inflation will come from.  

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Select the correct answer.
Schach [20]

Answer:

с. Purchases and Creditors

Explanation:

A goods account is hardly created in the general ledger. Accountants and bookkeepers use the purchases account to record goods bought by the company.  

When a business makes purchases, it can either pay cash or in credit.  Cash payments are recorded in the cash account. They reduce cash held by the business.

Credit purchases increase creditors and are recorded in the creditor's account.

3 0
2 years ago
Federally chartered banks and credit unions are run like businesses that make a profit.
Licemer1 [7]

Answer:

False.

Explanation:

A bank is said to be federally chartered when it is appropriately authorized and regulated by the federal government of a country with recourse to statutory laws but not the state government. Some examples of federally chartered banks are Wells Fargo Bank, Bank of England, Swiss National Bank, Citizen National Bank, Bank of Japan, PNC Bank, First National Bank, U.S. Bank, Reserve Bank of Australia, etc.

A credit union can be defined as a non-profit making financial cooperative that is typically controlled by its members (employees, church groups, labour unions etc) and it is saddled with the responsibility of providing financial services like the traditional banks.

Generally, the profit made from the amount of money that is being deposited by the members of a credit union are usually returned to the members as a form of better interest rates. Some examples of credit unions are SchoolsFirst Credit Union, New York University Federal Credit Union, Consumers Credit Union, etc.

Hence, federally chartered banks and credit unions are not run like businesses that are a profit i.e they are a non-profit business.

4 0
2 years ago
Blue Ace Autos Inc. and Ferdova Autos Inc. are two competing automobile companies. While Blue Ace Autos' Cost of goods sold/Reve
scoray [572]

Answer:

A. Blue Ace Autos is less efficient than Ferdova Autos in producing goods.

Explanation:

The cost/ revenue ratio of Ferdova Autos is lower than that of Blue Ace, this indicates that for Ferdova Autos ,either revenue is higher or cost is lower than that of Blue Autos.

For example, let us imagine that the revenue of both companies is $60 million and th cost of production for Ferdova Autos is $32.52 (0.542 × 60 million ) million and that of the other company is $38.04 million (0.634 × 60).

We can see that Ferdova Autos spends less to generate the same amount of revenue. This means that Ferdova Autos is more efficient in production when compared with blue autos.

I hope my answer helps you

6 0
3 years ago
Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs ar
max2010maxim [7]

Answer:

A

Explanation:

3 0
3 years ago
Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Buildin
frozen [14]

Answer:

He will not pay any depreciation during October.

Explanation:

Depreciation is charged only on building equipment and machinery. It is not accounted for land as land is an asset whose value does not depreciate over the years.

Depreciation for Building A would be zero  for the month of october as depreciation is computed from the first of the month of acquisition to the first of the month of disposition.

The depreciation expense will be computed on 1st of November.

7 0
3 years ago
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