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3 years ago

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

1 answer:

n200080 [17]3 years ago

5 0

The quantity theory is a framework to understand price changes in relation to the supply of money in an economy.

It assumes an increase in money supply creates inflation and vice versa.

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3 years ago

produces sports socks. The company has fixed expenses of $ 75 comma 000$75,000 and variable expenses of $ 0.75$0.75 per package.

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Answer:

Results are below.

Explanation:

Giving the following information:

Selling price= $1.5

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Contribution margin= selling price - unitary variable cost

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3 years ago

The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According to the capital asset pricin

zavuch27 [327]

Answer:

13.2%

Explanation:

As per Capital Asset Pricing Model (CAPM),

Expected Rate Of Return = $R_{f} \ +\ B(R_{m} \ -\ R_{f} )$

wherein, $R_{f}$ = Risk free rate of return on treasury bonds

B= Beta , which represents the degree of sensitivity of security return to the market return.

$R_{m}$ = Return on market portfolio

Thus, Expected rate of return of security X = 6 + 1.2(12 - 6)

= 13.2%

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3 years ago

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When total utility starts to decrease, each additional song hurts MORE than the previous song.

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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