The view that anticipated changes in the money supply will have no effect on the economy's output would most likely be a proposition of <u>quantity theory</u>.
In monetary economics, the quantity theory of money (regularly abbreviated as TQM) is one of the directions of Western monetary concepts that emerged within the sixteenth-17th centuries.
The TQM states that the general price degree of goods and offerings is at once proportional to the amount of money in the stream, or money delivers. As an example, if the amount of cash in an economy doubles, TQM predicts that fee ranges will also double.
The principle turned into firstly formulated via Renaissance mathematician Nicolaus Copernicus in 1517, and become influentially restated by means of philosophers John Locke, David Hume, and Jean Bodin. The idea experienced a massive surge in popularity with economists Anna Schwartz and Milton Friedman's book A monetary history of the US, posted in 1963.
Learn more about economy here: brainly.com/question/2824360
#SPJ4
Answer:
Annual depreciation= $7,996
Explanation:
Giving the following information:
Purchase price= $42,000
Useful life= 5 years
Salvage value= $2,020
<u>To calculate the annual depreciation under the straight-line method, we need to use the following formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (42,000 - 2,020) / 5
Annual depreciation= $7,996
Answer:
Ke = Rf + β(Rm - Rf)
Ke = 4.3 + 1.12(13.2 - 4.3)
Ke = 4.3 + 1.12(8.9)
Ke = 4.3 + 9.968
Ke = 14.268%
Explanation:
In this question, there is need to calculate cost of equity based on capital asset pricing model. Cost of equity is a function of risk-free rate plus beta multiplied by the difference between market return and risk free rate.
Answer:
The correct answer is option a.
Explanation:
The imposition of tax on tea will create a tax wedge. The price paid by the buyers will increase and the price received by sellers will decrease. The tax burden will be shared between the buyers and sellers.
Who shares the major portion of the tax burden depends on their response to price change. Whoever has a more inelastic response to the price change will bear the major share of the tax burden. But the welfare of both buyers and sellers will get reduced.
Answer:
Debit Supplies expense account (P/L) $1,245
Credit Supplies account (B/S) $1,245
Explanation:
The adjustment required is for the supplies used up during the period.
This can be determined by the net movement in the supplies account considering the opening balance, the purchases or additions and the closing balance.
Supplies used up = $330 + $1,500 - $585
= $1,245
The adjusting entries required is
Debit Supplies expense account (P/L) $1,245
Credit Supplies account (B/S) $1,245
Being entries to recognize supplies used up during the period