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2 years ago

(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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What is the cheif reason why a person would become a supervisor?

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3 years ago

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The employer amount of FICA taxes that Red Mountain is required to pay is equal to the amount that it withholds from its employe

kolezko [41]

Answer:

$189,000

Explanation:

The computation of total expense with regards to this payroll is shown below:-

Total expense = Salaries and wages earned by employees + Employer's portion of FICA taxes

= $180,000 + $9,000

= $189,000

Therefore for computing the total expenses with regards to this payroll we simply applied the above formula and we ignore all other values as they are not relevant.

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3 years ago

On January 1, 2020, Harter Company had Accounts Receivable $139,000,

LuckyWell [14K]

Solution and Explanation:

Date Particulars Post ref. Debit ($) Credit ($)

5- Jan Accounts Receivable 20000

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(To record the sales revenue)

5- Jan Notes Receivable 30000

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(To record the sales revenue)

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(To record the notes receivable and sales revenue)

20- April Cash 20400

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( To record the note settlement of past due balance)

18- Aug Cash account 8360

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(To record the collection of notes payment)

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3 years ago

Bruce, a buyer, contracted with Steve, a seller, to buy ten dozen bicycle tires for $960. Payment was due thirty days after deli

umka2103 [35]

Answer:

b. Hold the tires with reasonable care for disposition as the seller instructs.

Explanation:

When goods are non-conforming to contract, the buyer has the right to reject the goods. The seller also has the right to cure the defect or ensure conformity.

1. Buyer's right to reject: In this case the buyer has the right to reject the goods on inspection, and notify the seller within a reasonable amount of time.

2. Seller's right to cure: The seller has the right to cure defect on the goods, and this can be done where there is still time to rectify the defects noticed by the buyer. In this case, the buyer is not due to pay for the goods for the next 30 days.

The seller still has the opportunity to meet the contract standard and close the deal.

So option b is correct. The buyer holds the goods pending decision of seller to either cure defects on goods or retrieve the goods.

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3 years ago

In monopolistically competitive markets, resources are: Group of answer choices overallocated because long-run equilibrium occur

sasho [114]

Answer: underallocated because long-run equilibrium occurs where price exceeds marginal cost.

Explanation:

Monopolistic competition occurs when there are many firms that are producing products that are differentiated. It should also be noted that one typical characteristics of a monopolistic competition is a large number of firms coupled with low entry barriers.

It should be noted that in monopolistically competitive markets, resources are underallocated because long-run equilibrium occurs where price exceeds marginal cost..

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3 years ago

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

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