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Ray Of Light [21]
3 years ago
11

Suppose that the Fed sharply increases the money supply between 2012 and 2017. In 2017, Valerie's wage has risen to $30.00 per h

our. The price of a magazine is $10.00 and the price of a donut is $6.00. In 2017, the relative price of a magazine is 1.67 donuts. Between 2012 and 2017, the nominal value of Valerie's wage increases, and the real value of her wage remains the same. Monetary neutrality is the proposition that a change in the money supply affects nominal variables anddoes not affect real variables.True / False.
Business
1 answer:
Vadim26 [7]3 years ago
5 0

Answer:

True

Explanation:

Description

Monetary neutrality is an idea that a only nominal variables in the economy such as prices, wages, and exchange rates are affected by changes in the stock of money, but has no effect on real variables, like employment, real GDP, and real consumption.

From the question, there is an increment in the nominal value of Valerie's wages but this increase does not reflect on her consumption because the real value of her money; which is the amount of goods and services she can buy stays the same despite the increase.

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Answer:

duress

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A contract may not be enforced it any of the parties does not give genuine or real assent, i.e. they freely agree with the contract terms.

Duress happens when one of the parties threatens to do something bad or wrong to the other party in order to force them to enter a contract. Contracts agreed under duress can be invalidated.

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3 years ago
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Either join, grow more susceptible to stealing, or get caught with them even if she didn't join.
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3 years ago
You are considering two independent projects. Project A has an initial cost of $125,000 and cash inflows of $46,000, $79,000, an
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Answer:

Accept Project A and reject Project B

Explanation:

See the images to get the answer.

Decision: Required rate of return = 16% = Cost of capital.

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From the basis of the formula, we can accept the project A because the IRR of Project A (19%) is higher than the cost of capital (16%). On the other hand, we can reject the project B because the IRR of Project B (14%) is smaller than the cost of capital (14%).

8 0
3 years ago
When we express the value of a cash flow or series of cash flows in terms of dollars today, we call it the ________ of the inves
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Present value

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Present value is the value of cashflows discounted at interest rate at arrive at its value today.

Future value is the value of cashflows discounted at interest rate at arrive at its value at some given time in the future.

I hope my answer helps you

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Answer:

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d. 18 pounds of fish per crate of olives.

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Switzerland and Portugal both countries can produce Olives and fish. One country has advantage in producing fish while other has advantage in producing olives. Both countries can gain from trade if they find a intermediary way so that both countries can be in win win situation. It is beneficial for Portugal if it trades with Switzerland if it receives more than 3 pounds of fish.

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3 years ago
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