The quantity theory of money predicts that the inflation rate will be 4% if the money supply increases by 6%, real GDP increases by 2%, and the velocity of money remains constant.
All the money and other liquid assets present in an economy on the measurement date are referred to as the money supply. The money supply roughly consists of deposits that can be utilized virtually as easily as cash in addition to actual currency.
Governments issue coin and paper money supply through a mix of national treasuries and central banks. By dictating to banks what reserves they must maintain, how to offer credit, and other financial issues, bank regulators have an impact on the amount of money that is available to the general people.
By regulating interest rates and altering the amount of money flowing through the economy, economists study the money supply and create policies based on it. Because the money supply may have an impact on price levels, inflation, and the business cycle, both the public and private sectors conduct analyses. The most significant determining factor in the money supply in the United States is Federal Reserve policy. The term "money stock" also applies to the money supply.
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Answer: All of the above
Explanation:
Disney realized that China has different values from the United States and so Disneyland had to be built by Chinese standards not that of the U.S. in order for it to be a successful venture.
To this end, they brought in a Feng Shui expert who helped construct the park according to the principles of Feng Shui. They also made sure that the park's hotels had no 4th floor because the number four is considered bad luck in Chinese culture.
They also set the opening date to a date that was considered auspicious for the opening of a business to inspire good luck.
Answer:
Real purchasing power increase= 2.16%
Explanation:
Giving the following information:
You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. The inflation rate is 1.09%.
In this example, we have two different and opposite effects. The interest rate increases your purchasing power. If the inflation rate is 0, the purchasing power will increase (in one year) 3.25%.
The inflation rate decreases the purchasing power of nominal income.
Real purchasing power increase= annual interest rate - inflation rate
Real purchasing power increase= 3.25 - 1.09= 2.16%
Answer:
Hence, The division's return on investment (ROI) is closest to 32.7%
Explanation:
Return on Investment : It show a ratio between net operating income and average operating assets so that company get to know how much the return is available during a period.
The formula to compute return on investment is shown below:
= Net operating income ÷ Average operating assets
= $1,141,700 ÷ $3,495,000
= 32.7%
Since the total sales and require rate of return is irrelevant while computing the ROI. So, it would not be considered in computation part.
Hence, The division's return on investment (ROI) is closest to 32.7%
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