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Alex Ar [27]
3 years ago
5

(a) Explain the quantity theory and (b) how does the theory explains the cause of inflation​

Business
1 answer:
Digiron [165]3 years ago
8 0

Answer:

The quantity theory of money defends that the money supply has a determining influence on the price level, that is, that the quantity of circulating money will necessarily be imputed to the value of the quantity of commercial operations that are carried out.

Therefore, this theory establishes that the creation of money without increasing the commercial volume (the total amount of tradable goods) will lead to inflation, since it is not really increasing the economic value of an economy, but only the money supply of it, which is "empty" of value, and therefore is coupled with existing commercial transactions.

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Other things remaining​ equal, the law of demand says that higher prices will lead to a A. smaller quantity demanded and lower p
Yuri [45]

Answer:

The answer is A.

Explanation:

Other things remaining​ equal, the law of demand says that the higher the price, the lower the quantity demanded and the lower the price the higher the quantity demanded.

Suppose a good is being sold at $5 and 20 quantities are being demanded, if the price increases to $6, lesser of that goods should be demanded

7 0
4 years ago
Phildell Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax rate f
AysviL [449]

Answer:

Total deduction                               2,443.21

Explanation:

8,288

x 6.20% Sccial Security                      513.856

x 1.45% Medicate                                120.176

x 6.20% FUTA&SUTA  (for 7,000)       434              

Income tax witheld                           1,375.17

Total deduction                               2,443.21

We will multiply his taxable wages for period by the tax rate.

We must noticew FUTA and SUTA applies fdor the first 7,000 only so we multiply by 7,000 not by 8,288

3 0
4 years ago
Something you enjoy or want to know more about is a(n) _____.
gtnhenbr [62]
The answer is B. Interest
3 0
3 years ago
Read 2 more answers
What can you learn about a consumer from the choices the person makes?
allsm [11]

You can learn a lot about a consumer based on the choices the person makes. If the buy the same brand or type of item consistently, you can tell they favor that brand. If they buy what's on sale, then they are a bargin shopper looking for a good deal. You are able to figure out a consumers buying habbits based on the type of purchases they make.

3 0
3 years ago
A bond with a face value of $100,000 and a quoted price of 102¼ has a selling price of:
ANTONII [103]

Answer:

d. $102,250.

Explanation:

The computation of the selling price is shown below:

= Bond face value × quoted price

= $100,000 × 1.0225

= $102,250

To determine the selling price we multiplied the bond face value with the quoted price so that the accurate selling price can come.

We simply fraction the quoted price and then divide it by 100

In mathematically,

= 409 ÷ 4

= 102.25 ÷ 100

= 1.0225

3 0
3 years ago
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