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Alex Ar [27]
2 years ago
5

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

Business
1 answer:
Digiron [165]2 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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Suppose that Robin withdrawals $100 of cash from her checking account at Trendy Bank and uses it to buy a camera from Adam, who
kupik [55]

Answer:

The alternative including its query is presented throughout the explanation section below.

Explanation:

(a)

The strategic petroleum insufficiency should also be,

= 100-0.10\times 100

= 90

This means that the financial institution would have to start reducing its loan payments as well as currency exchange by $90.

(b)

Yes, you can significantly raise your loan deposit accounts secure manner. Early years setting throughout Serenity Bank would be increased, therefore the proportion of total reserves would indeed be $90.

The margin requirement of spending in the market hasn't started to change since the percent impact would be similar. Robin's account was whittled down by $100, as well as Adam's payment was continued to increase whilst also $100. So there's no modification throughout the monetary policy.

5 0
3 years ago
If the number of unemployed workers is 19 million, the number in the working-age population is 2) 500 million, and the unemploym
Sunny_sXe [5.5K]

Answer:

D) 475 million

Explanation:

Unemployment is the people who is not currently working and searching for the job. These are the part of Labor force. So unemployment rate is as follows:

Unemployed Worker = 19 million

Unemployment rate = 4%

Unemployment rate = Unemployed worker / Labor force

4% = 19 million / Labor Force

Labor Force = 19 million / 4%

Labor Force = 475 million

6 0
3 years ago
Regarding the relationship between inventory management and JIT systems, which of the following (if any) are true?
IRINA_888 [86]

Answer:

Options A and D are true.

  • <u>JIT systems require careful inventory management.</u>
  • <u>JIT systems work very well if supplier and manufacturer inventory systems can be integrated into one system.</u>

Explanation:

Doing JIT accurately infers having exact interest gauges and attention to buyers' buying propensities consistently. Any miscomputation could have a significant negative effect on business capacities.  

For it to get effective, JIT conveyance needs a profoundly responsive and adaptable production network. The responsiveness level is characterized by how quick the store network can adjust to oblige the 4 essential spaces of adaptability in light of an outside upgrade like a shopper request: item, volume,

7 0
3 years ago
Current disposable income held to buy consumption goods in the future is referred to as:______.
maxonik [38]

The current disposable income held to buy consumption goods in the future is referred to as saving.

Consumables are goods that are best suited for their end use. In other words, the end-user of consumer goods is the consumer themselves, and capital goods are the goods used to manufacture consumer goods.

Common examples include food, drink, clothing, shoes, and gasoline. Consumer services are usually intangible products or actions that are produced and consumed simultaneously.

Learn more about   consumption goods here

brainly.com/question/18849286

#SPJ4

3 0
2 years ago
Technical skills: A. help you understand the potential and the limitations of information technology. B. help you work with end
Lera25 [3.4K]

Answer:  A. help you understand the potential and the limitations of information technology

Explanation: Helping you understand some, if not all of the potential and limitations of information technology is among the usefulness of technical skills which are skills, abilities, knowledge or expertise that are needed to perform complex tasks, processes or actions that are computational, mechanical, scientific or relating to information technology. Examples include the knowledge of programming languages, mechanical tools, design programs etc.

3 0
3 years ago
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