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3 years ago

If the money supply is $60 billion, the velocity of money is 7, and real GDP is $336 billion, then the price level equals:

Business

1 answer:

attashe74 [19]3 years ago

5 0

Answer:

$1.25

Explanation:

According to the quantity theory of money

money supply x velocity = real gdp x price

7 x 60 = 336 x p

p -1.25

velocity measures how fast money changes hand in the economy

real GDP is gdp adjusted for inflation

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Bob Denton of Denton Pest Control buys equipment from Allied Tools because Allied hires him to spray its warehouse for insects p

umka2103 [35]

Answer:

C) reciprocity

Explanation:

Based on the information provided within the question it can be said that this scenario is an example of reciprocity. This term refers to exchanging one thing for another in which both parties benefit in their own unique way. Which is the case since Bob buys equipment from Allied Tools which generates revenue for Allied Tools thus benefiting them, and Allied Tools hires Bob periodically which generates revenue for Bob thus benefiting him.

7 0

3 years ago

Consider a model with an interaction between expenditures: voteA 5 b0 1 b1prtystrA 1 b2expendA 1 b3expendB 1 b4expendA#expendB 1

andrew11 [14]

Answer:

Explanation:

1. What is the partial effect of expendA on voteA?

ΔvoteAΔexpendA=β2+β4expendB→0.0382809+−6.63e−6expendB

2. Is the expected sign for b4 obvious?

Yes because the expendB alone is a negative and expendA is a positive leaving B4 to be a negative number .

4 0

3 years ago

What is your reaction to Harriet's suggestion of using the cost of debt only?

Ahat [919]

Answer:

No, it is a bad idea to use only the cost of debt

Explanation:

Only using the cost of debt, is not a good idea because too much amount of borrowing could lose the confidence of the investors and it could lead to the uncertainty in the future cash flows.

Suppliers might be worried regarding the financial situation and lead to the supply disruption. Though, the debt might save the tax expenses, which could lead to the negative cash flow.

When the company does not have adequate amount of cash at hand, it could cause many disruptions of financial. WACC (Weighted Average Cost of Capital) rates need to be used as the capital costs as it weigh the used capital cost and the used debt.

8 0

3 years ago

Creative Sound Systems sold investments, land, and its own common stock for $39 million, $15.9 million, and $41.8 million, respe

Mnenie [13.5K]

Answer:

Creative Sound Systems should report $15,9 million as net cash flows from financing activities.

Explanation:

Consider only items relating to financing activities.

Cash flow from financing activities

Proceeds from Sale of common stock $41.8 million

Purchased of treasury stock ( $25.9 million)

Net Cash flow from Financing Activities $15,9 million

8 0

3 years ago

Read 2 more answers

The Copy Department in the College of Business at State University provides photocopying service for both the Marketing and Econ

fiasKO [112]

Answer:

The correct answer is $170,000.

Explanation:

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

We can calculate the cost allocated to Marketing by using following formula:

Total cost allocated = Fixed cost + Variable cost

Where, Fixed cost = (3,600,000 ÷ 5,400,000) × $120,000

= $80,000

And , Variable cost = $0.025 × 3,600,000 = $90,000

By putting the value, we get

Total cost allocated = $80,000 + $90,000

= $170,000

7 0

3 years ago