1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mama L [17]
2 years ago
14

If nominal GDP is $900 billion and, on average, each dollar is spent six times in the economy over a year, then the quantity of

money demanded for transactions purposes will be Multiple Choice 750 150 3,600 450 900
Business
1 answer:
NeTakaya2 years ago
7 0

Answer:

Option B (150) is the correct answer.

Explanation:

Given:

Nominal GDP,

= $900

Money velocity,

= 6

As we know,

⇒ Nominal \ GDP=Quantity \ of \ demanded \ money\times Money \ velocity

By putting the vales, we get

⇒                    900=Quantity\times 6  

⇒           Quantity=\frac{900}{6}

⇒                           =150

You might be interested in
A manufacturer of prototyping equipment wants to have $3,000,000 available 10 years from now so that a new product line can be i
diamong [38]

Answer:

annual savings = future value / [(1 + r)ⁿ - 1 ] / n

annual savings = $3,000,000 / [(1 + 0.1)¹⁰ - 1 ] / 0.1

annual deposit = $188,236.18

Explanation:

this is an ordinary annuity

future value = $3,000,000

interest rate = 10%

periods = 10

using the future value of an annuity formula, annual deposit = future value / annuity factor

FV annuity factor, 10 periods, 10% = 15.937

annual deposit = $3,000,000 / 15.937 = $188,241.20

instead of using annuity factors, you can solve this equation:

annual deposit = future value / [(1 + r)ⁿ - 1 ] / n

annual deposit = $3,000,000 / [(1 + 0.1)¹⁰ - 1 ] / 0.1

annual deposit = $188,236.18

Both answers are very similar, the difference is only 0.00267%

8 0
3 years ago
What is the biggest difference in who controls the 401(k) and IRA retirement plans? a. IRA is intended for a stable retirement i
Licemer1 [7]

Answer:

The answer is: D) A 401(k) is controlled and monitored by an employer, and an IRA is controlled by the investing individual.

Explanation:

A 401(k) is sponsored and controlled by an employer. The employer decides where the money is going to be invested. Sometimes the employer may match some of the employees' contributions. The employer can also take loans or hardship withdrawals from the 401(k) funds.

While IRA accounts are held by custodians which are banks or brokerage firms.

5 0
3 years ago
Read 2 more answers
One of the reasons the apple ii computer was popular was that ________.
Svet_ta [14]
One of the reasons why the Apple II computer was popular and known to the people was that the "operating system of this computer was stored in the ROM or Read-Only Memory". It is developed with advanced utilities and also the first multi-touch wireless mouse was also being developed by Apple company. Other reasons, why people choose Apple II computer over the other brand was that its durability and uniqueness. But this computer is much expensive compared to other known brands but still, people keep patronizing the apple II computer product.
4 0
3 years ago
Individuals who are given hard or challenging goals perform better than those given easy goals - true or false
muminat
False.....................
6 0
2 years ago
Read 2 more answers
Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9
murzikaleks [220]

Answer:

d. 5.08%

Explanation:

We have to first calculate the YTM of the bond, and then apply the tax shield.

To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.

C \times \frac{1-(1+r)^{-time} }{rate} +Face\:Value/(1+rate)^{time}= PV\\

46.25 \times \frac{1-(1+IRR/2)^{-20*2} }{rate} + 1000/(1+IRR)^{20}= 1075\\

IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)

then we apply the shield tax to the IRR:

IRR x (1 - tax-rate) = Cost of debt

0.084656891 * ( 1 - 0.4) = 5.0794= 5.08

3 0
3 years ago
Other questions:
  • A 13-year bond of a firm in severe financial distress has a coupon rate of 10% and sells for $930. The firm is currently renegot
    5·1 answer
  • Chester's turnover rate for this year is 6.29%. This rate is projected to remain the same next year and no further downsizing wi
    6·1 answer
  • Ron is an executive coach who wants to develop new training programs for customers and would like feedback from his staff and so
    13·1 answer
  • A group of ten UIC professors each contributed an equal amount to the purchase of a State of Illinois Lottery ticket. Two of the
    13·1 answer
  • It is the ______ of accounting professionals to use professional and moral judgment while dealing with clients or organizations.
    5·1 answer
  • When a food safety inspector enters your establishment you should?
    5·1 answer
  • Which of the following functions is most closely connected with the CPSC?
    9·2 answers
  • raffle is being held at a benefit concert. The prizes are awarded as follows: 1 grand prize of $6,600.00, 3 prizes of $800.00, 3
    13·1 answer
  • Creative Sound Systems sold investments, land, and its own common stock for $32.0 million, $15.2 million, and $40.4 million, res
    9·1 answer
  • Technology helps business professionals, keep more organized, communicate better, and effectively keeps businesses secure. Techn
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!