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Alex777 [14]
2 years ago
9

Suppose real GDP is forecasted to grow by 2.78 %, the velocity of money has been stable, and the Fed announces an inflation targ

et of 3.70 %. What is the largest money growth rate the Fed could implement and still achieve its inflation target
Business
1 answer:
Vadim26 [7]2 years ago
6 0

Answer: 6.48%

Explanation:

This can be solved using the Quantity theory of money;

MV = PY

When dealing with changes, formula changes to;

% change in Money Supply + %change in velocity = %change in price + %change in real GDP

Velocity has been stable so will be zero.

change in money supply = 3.70% + 2.78%

= 6.48%

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Royal Dutch Shell
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3 years ago
Assume that you would like to purchase 100 shares of preferred stock that pays an annual dividend of $6.00 per share. However, y
butalik [34]

Answer:

$267.1211

Explanation:

return on preference share per unit is $6  , thus at 12% annual rate of return. Initial value of preference shares will be $50 per unit ( $6 divided by 12%).

Total value of preference shares = $50 multiplied by 100 preference shares = $5000

Future value of preference shares = 5000 (1.12)^5  = $8,811.7084

to find the value of money to be deposited to be able to buy the preference shares at the end of 5 yrs.

we work back to get the present value using the mutual fund annual rate

$8811.7084 = pv (1.06)^60  the rate is compounded monthly. Hence we shall compound the return 60 times in 5 years

Bank account money = 8811.7084  divided by 32.9877 = $267.1211

5 0
3 years ago
A cash payment of $130 on account was recorded as a $310 debit to accounts payable and a $310 credit to cash. the necessary corr
dexar [7]

(310-130=180)

debit cash $180; credit Accounts Payable, $180

Hope this helped :) !

8 0
3 years ago
Read 2 more answers
The process of transferring the debits and credits from the journal entries to the accounts is called a.journalizing b.sliding c
Rudiy27

Answer:

d. posting

Explanation:

There are various steps to prepare the financial statements. These are as follows:

1. Journalizing: It is a recording of business transaction with a narration in which the one account is debited and the other account is credited. It can be more transactions debited and credit that is depending upon the nature of the transaction.

2. Ledger posting: After recording the journal entries, the next step is to make the number of ledger i.e posting of the amount and the accounts to their respective ledger i.e sales ledger, purchase ledger, etc

3. Trial balance

4. Income statement

5. Statement of owners equity

6. Balance sheet

7. Cash flow statement

4 0
2 years ago
A firm can produce steel with or without a filter on its smokestack. If it produces without a filter, the external costs on the
Licemer1 [7]

Answer:  B. The firm would install the filter at a cost of $ 300,000.

Explanation:

If the community owns the property rights, they would be able to demand that the firm pay the external cost of $500,000 per year.

If on the other hand the company installed a filter, it would cost them $300,000 but then they would not have to pay the community the $500,000.

The lower cost option would be to install the filter for $300,000 which is what the firm would do.

6 0
3 years ago
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