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3 years ago

The principle of monetary neutrality implies that an increase in the money supply will

Business

1 answer:

8090 [49]3 years ago

8 0

Answer:

The correct answer is letter "B": increase the price level, but not real GDP.

Explanation:

The neutrality of money principle states that fluctuations in the money supply affect the prices of goods, services, and wages but not the growth in an economy or its real Gross Domestic Product (GDP). Austrian economist Friedrich A. Hayek (1899-1992) coined the term "neutrality of money" referring to a characteristic of money playing a neutral role in the growth of an economy.

Nowadays, specialists in the field believe the neutrality of money is a concept that applies in the long-run analysis of the productivity od a country.

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Which of the following statements accurately represents equity theory? equity causes people to doubt their capabilities. equity

never [62]

The equity theory is a theory that is based on one's idea of fairness. One is motivated if he or she feels equity, but when chances that inequity arises, he or she will try to adjust in order to achieve that sense of equity. In the given statements above, the one that accurately describes this theory is the last statement.

3 0

3 years ago

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Mary wants paul's gummi bears and is willing to give up her fruit gushers for them, but not her snickers. the benefit to mary of

snow_tiger [21]

The benefit of Mary or Paul's gummi bears can be measured by the value of the fruit gushers as this is the exchange that she is willing to take to obtain the gummi bears that is from Paul and the snickers are excluded as this is something that she does not want to give up.

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4 years ago

Read 2 more answers

If you send a personal email from a work computer, does the company have the right to view that message?

sergeinik [125]

Answer:

Yes.

Explanation:

A company has the right to view the email messages sent from the computer of the company but only if the sender has used the official email i.d to send a personal email. In simple terms, if the sender has logged in his personal email i.d in the work computer of the company then the company has no right to view the message but if the mail is sent through the email i.d of the company then only the company has the right. The email i.d that the company provides to its employees is meant for official works and thus the company also has access to the employee's i.d and right to view any message sent through the official email i.d.

8 0

3 years ago

In November 2006, Citigroup's stock (NYSE: C) was trading at $49.59. Following the credit crisis of 2007-2008 and by the end of

Cerrena [4.2K]

Answer:

1. A) A stock's intrinsic value is based on true risk in the company

2. B) A company that has been distributing a portion of their earnings every quarter for the past six years

3. B) Successful companies benefit consumers

C) Most people have an important stake in the stock market.

Explanation:

1. ..... Based on your understanding of stock prices and intrinsic values, which of the following statements is true?

A) A stock's intrinsic value is based on true risk in the company.

The Intrinsic value of a stock takes into account the market sentiment of a given stock which means that I shows the riskiness of it.

2. Which of the following companies would you choose to evaluate if you were using the discounted dividend model to estimate the value of the company's stock?

B) A company that has been distributing a portion of their earnings every quarter for the past six years.

The Dividend Discount Model uses constant dividends in calculation of stock price so a company that has been paid dividends is very much Preferred than one that isn't.

3. Which of the following describe the reason(s) why maximization of intrinsic stock value benefits society. Check all that apply.

B) Successful companies benefit consumers

C) Most people have an important stake in the stock market.

Successful companies do indeed benefit consumers as they will pass on their wealth as well as paying workers better to stimulate growth.

Also a lot of people are invested in the stock market. Maximising Intrinsic value thus increases worth.

If you need any clarification do react or comment.

5 0

4 years ago

A variable like the Fed's discount rate, the rate charged by the federal reserve on borrowed money by banks, is an example of wh

otez555 [7]

Answer:

A policy instrument (variable directly under the control of policy makers)

Explanation:

The Fed's discount rate is a monetary policy tool used to expand or contract the money supply.

When the Fed lowers the discount rate, it is engaging in an expansionary monetary policy which will increase the money supply, lower interest rates and increase total aggregate demand.

When the Fed raises the discount rate, it is engaging in a contractionary monetary policy which will decrease the money supply, increase interest rates and fight rising inflation.

3 0

3 years ago