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3 years ago

If we look at the equation for money demand from Irving Fisher, which of the following statements is true?

Business

1 answer:

Juliette [100K]3 years ago

6 0

Answer:

The correct answer is option D.

Explanation:

The money equation given by Irving fisher is popularly known as fisher's equation.

The equation is given as MV=PT

Here, M represents money supply, V is the velocity of money, P is the price level and T refers to the volume of transactions or output level.

The supply of money refers to the quantity of money in existence while the velocity of transactions shows the number of times, money changes hands. Together they show the volume of money in circulation.

P is the average price level and T represents the expenditures on all transactions or, in other words, output level.

Here, V and T are assumed to be constant. This means that the money supply directly affects the price level.

There is no explicit mention of the interest rate in this equation.

So, option D is the correct answer.

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Answer:

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Less: Actual fixed overhead cost 411,000

Total overhead cost variance 5,100 (A)

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3 years ago

The category that is generally considered to be the best measure of a company's ability to continue as a going concern is A. cas

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Answer:

D. cash flows from operating activities

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3 years ago

In the loanable funds model, an increase in an investment tax credit would create a a. shortage at the former equilibrium intere

Drupady [299]

Answer:

a. shortage at the former equilibrium interest rate. This shortage would lead to a rise in the interest rate.

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3 years ago

When the Fed does repos and reverse repos (or repurchase agreements) with financial institutions, the collateral used in these t

MatroZZZ [7]

Answer:

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Explanation:

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2 years ago

Stp analysis occurs during which step of the marketing planning process?

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STP evaluation include final step evaluation.

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3 years ago

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