1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Which functionality would you include in the product category of the marketing mix?
Licemer1 [7]

The after sales services are included in the product category of market mix.  Option C

<u>Explanation: </u>

The set of ideas or actions taken by a business entity or a company to promote its product or brand in the market. The four P’s of marketing mix are namely,

  • Product - The end product that is offered for sale.
  • Price – The value set for the finished good for selling.  
  • Place – Direct or indirect markets.
  • Promotion – Public relations, advertising, etc.,

From the given, discounts comes under pricing, product image used in advertising comes under promotion and substitute goods belong to a different topic. After-sales services comes under the service branch of the product category.

6 0
3 years ago
When might be the best time to start saving for retirement?
Delvig [45]
It would be d bc it not everyone does all of the things they are saying
7 0
3 years ago
Read 2 more answers
On April 1, Moloney Musical Instruments sold merchandise on account to Fronke's Flutes for $7,000 on Invoice 1001, terms 2/10, n
Eduardwww [97]

Answer:

The question is <em>"Record the transactions on April 1 and April 10. View transaction list Journal entry worksheet Record the sale on April 1."</em>

Date     Account Title and Explanation       Debit         Credit

April 1    Account receivables                      $7,000

                  Sales revenue                                               $7,000

April 10.  Cash  ($7,000*98%)                       $6,860

                     Sales discount ($7,000*2%)                        $140

                     Account receivables                                     $7,000

3 0
3 years ago
In January, Donna’s dad, who is 75 years old, agreed in an email with his financial advisor that he wanted to take a distributio
andrey2020 [161]

I believe this shouldn't affect him since he is 75 years old, past the 65 retirement age. So the $50K from this IRA can be withdrawn tax free. If he moved the funds to a checking account BEFORE 65, then it would be taxable. Check with a financial advisor.

3 0
3 years ago
Assuming that the physical output (i.e., the actual quantity of all final goods and services) of all final goods and services re
joja [24]

Answer:

a) true

Explanation:

A rise in the general price level is called inflation and it affects the nominal value of the company's output. E.g. you sell pants and last year they sold at $10 and now since inflation rate is 10%, they sell at $11. But inflation only affects nominal values, it doesn't affect real values which are calculated using a base price of a certain year X, times the quantity sold. Following the example, your real output would not be $11 per pair of pants, instead it would still remain at $10 since the inflation is discounted.

5 0
3 years ago
Other questions:
  • Fixing a problem will often cost money to minimize these costs it is best to find and fix the problem_____________.
    10·1 answer
  • The _____________ person to speak, usually loses.
    5·2 answers
  • You invest $100 in a risky asset with an expected rate of return of 0.12 and a standard deviation of 0.15 and a t-bill with a ra
    6·1 answer
  • The subject matter expert in an e-learning learning program is one who pays the project bills, coordinates activities of writers
    13·1 answer
  • Drake enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment m
    10·1 answer
  • In calculating the daily balance, cash advances are
    5·2 answers
  • I am not a member of a credit union, therefore I _____ use any of its services.
    6·2 answers
  • As a component of real estate value, the principle of substitution states that
    6·1 answer
  • I need help!!!! Someone please lemme know what I need to do!!!!
    14·1 answer
  • For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as foll
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!