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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.

You might be interested in

On what date does congress normally begin its annual meeting unless otherwise determined?

mrs_skeptik [129]

Congress usually begins its annual meeting on January 3 unless otherwise determined. This is as stipulated in the 20th amendment to the United States constitution, which moved the beginning and ending of terms of members of Congress from March 4 to January 3.

5 0

3 years ago

Frontier Corp. sells units for $57, has unit variable costs of $29, and fixed costs of $164,000. If Frontier sells 10,000 units,

jeka94

Answer:

2.4

Explanation:

Frontier corporation sells unit for $57

The unit variable cost is $29

Fixed cost is $164,000

Frontier sells 10,000 units

The first step is to calculate the contribution margin

= 57-29×10,000

= 28×10,000

= 280,000

Profit = 280,000-164,000

= 116,000

Degree of operating leverage can be calculated as follows

= 280,000/116,000

= 2.4

6 0

3 years ago

The actual cash received from cash sales was $3,930 and the amount indicated by the cash register total was $3,880. the journal

Nuetrik [128]

The actual cash received from cash sales was $14,356 and the amount indicated by the cash register total was $14290

a.what is the amount deposited in the bank for the day's sales?

14,356
Because this is the amount which is actually received by sales

b.What is amount recorded for the day's sales?

14,290
Because this is the amount which has been recorded in the cash register.

c.How should the difference be recorded?

Dr Cash 14,356
Cr Over/Short 66
Cr Sales 14,290

d. If a cashier is consistently over or short what action should be taken?

First of all we need to find out that whether the cashier is genuinely making mistakes or there is a case of theft.There would be some close monitoring. If they are just mistakes, maybe some extra mentoring in cash handling would help.

E5-18

Part a and b are informational and thus we dont have to do anything with them.

Part c and d are reconciling terms.

Parts e and f needs entries to adjust the company's books. For e there needs to be a debit to cash for the incorrect amount and a credit for the correct amount. For f there needs to be a credit to cash.

E.
(Dr) Cash in bank $540
(Cr) Accounts payable $540
$710 - $170

F.
(Dr) Bank charges $50
(Cr) Cash in bank $50

Bank reconciliation:
Cash balance per book $24,010
Add: error $540
Less: Debit memo $50
Adjusted book balance $24,500

Cash balance per bank $22,750
Add: Deposits in transit $9,100
Less: Outstanding checks $7,350
Adjusted bank balance $24,500

Hope you get it.

Get back to me in case you have any doubts.
I would be happy to help.

5 0

3 years ago

When ruko, a device used to stream movies at home, increases prices by 48% total revenue decreases by 61%?

Free_Kalibri [48]

Answer: Demand is elastic

Explanation:

Total revenue from the sale of a good is negatively related to the price when demand for the good is elastic and positively related to the price when demand for the good is inelastic.

So, as increase in price by 48% decreases total revenue by 61%, therefore the demand for Ruko, a device used to stream movies at home is elastic.

3 0

3 years ago

If the span of management is wide, _______ levels are needed, and the organization is _______. If the span of management is narr

creativ13 [48]

Answer:

If the span of management is wide, Fewer levels are needed, and the organization is Flat. If the span of management is narrow, More levels are needed, and the resulting organization is Tall.

Explanation:

Span of control is the number of personals working under a single Designation.

If their are greater number of employees working under a single designation then the hierarchy chart is wider in length, that's the reason we also say that the organization is flat. Due to these increased number of employees working under single designation, there is lower number of levels in such organization. It is also one of the main reason the employees turnover is very high because there are fewer chances of promotion in flat organizations. The number of candidates for the promotion are higher in the organization.

On the other hand, if their are lower number of employees working under a single designation then the hierarchy chart is taller in length, that's the reason we also say that the organization is flat. Due to these lower number of employees working under single designation, there is higher number of levels required in such organizations. It is also one of the main reason the employees turnover is very low because there are higher chances of promotion in tall organizations. The number of candidates for the promotion are fewer in the organization.

8 0

3 years ago