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Ray Of Light [21]
4 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]4 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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The World Trade Organization (WTO) has an important role in international trade. From the list below, select all statements abou
AleksandrR [38]

Answer:

Letter A

Explanation:

The main objective of the WTO is to promote the liberalization of world trade, reducing or extinguishing trade and customs barriers to facilitate economic exchanges at the international level. The agreements involve trade in goods, services, and intellectual property.

It is also important to know that currently, the World Trade Organization has 156 member countries.

5 0
4 years ago
The marginal principle of retained earnings means that each potential project to be financed by retained earnings must:
Sedaia [141]

Answer:

The correct answer is D

Explanation:

Marginal principle is the principle which is referred to an increase in the activity level when the marginal advantage exceeds or more than the marginal cost.

So, the marginal principle of retained earnings would be when it will provide the higher rate of  return than the shareholders who could achieve after paying taxes on the dividends.

3 0
3 years ago
How does applying econometrics to economics validate economic decisions for an organization? support your response with an examp
nordsb [41]
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8 0
3 years ago
Failure to adequately plan for retirement can result in
frutty [35]
I believe the answer is 'D. Additional Taxes'

Hope this helps.
5 0
4 years ago
Assume there is a national lottery and the winning ticket is worth​ $10 million. one winning ticket will be selected. if there a
boyakko [2]
The probability that the buyer of one ticket will win the lottery that is worth $10 million will be determined or calculated by dividing the number of tickets that a person has by the total number of tickets which were sold at a certain period. When this statement is translated to mathematical expression,
     P = x / S
where P is the probability, x is the number of ticket bought by the winner (this number is already given to be 1), and S is the number of the sample (this is given to be 175175 million. Substituting the known values,

  P = 1 / 175175 million

<em>ANSWER: 5.71 x 10^-12</em>
7 0
3 years ago
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