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Vedmedyk [2.9K]
3 years ago
7

The money demand function for an economy is given by (M/P)d = (0.6Y)/(i1/2). If output is 1,000 units, the nominal interest rate

is 9%, and the money supply is $1,200, the price level is _____.
Business
1 answer:
DIA [1.3K]3 years ago
6 0

Answer:

$0.6

Explanation:

Nominal interest rate (i) = 9% = 0.09

Output (Y) = 1,000

Money supply(M) = 1,200

==> (M/P)^d = (0.6Y) / i^(1/2)

==> 1200/P = 0.6*1000 / 0.09^(1/2)

==> 1200/P = 600 / 0.3

==> 1200/P = 2000

==> 1200 = 2000 * P

==> P = 1200/2000

==> P = $0.6

Therefore, the price level is $0.6

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3 years ago
Wang Co. manufactures and sells a single product that sells for $640 per unit; variable costs are $352 per unit. Annual fixed co
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Answer:

The correct answer is 45%.

Explanation:

According to the scenario, the given data are as follows:

Selling price = $640

Variable cost = $352

Annual fixed cost = $985,500

Current sales volume = $4,390,000

So, we can calculate the contribution margin ratio by using following formula:

Contribution margin ratio = (Contribution margin per unit ÷ selling price per unit ) × 100

Where, Contribution Margin = Selling price - Variable cost

= $640 - $352 = $288

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Contribution margin ratio = ( $288 ÷ $640 ) × 100

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3 years ago
____________ transforms resource inputs from the environment into product outputs.
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Open system

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3 years ago
the bookkeeper for Blue Spruce Equipment Repair made a number of errors in journalizing and posting, as described below. For eac
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Answer:

Note: The full question is attached as picture below

                               (a)                   (b)                   (c)  

                                In                                      Larger  

                            Balance      Difference       column

1.                               No               $725             Debit  

2.                             Yes                 NA                NA  

3.                              Yes                 NA                NA  

4.                               No               $225            Credit  

5.                              Yes               $684               NA  

6.                               No                $45             Credit

7 0
3 years ago
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