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ad-work [718]
3 years ago
14

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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Which of the following are microeconomic problems? (You may select more than one answer.)(a) Work/leisure choice.(b) Marketing s
Ksivusya [100]

Answer:

(a) Work/leisure choice

(b) Marketing strategy

Explanation:

Microeconomic issues relate to those that are within the scope and power of individuals, households and firms which means that problems here will relate to decisions that these participants make in relation to resource allocation.

Choices relating to leisure or work have to do with the individual and the resources they would need or derive from either work or leisure and so are a microeconomic problem.

The marketing strategy that a firm should pursue is related to an individual firm and so is a microeconomic problem as well.

8 0
3 years ago
Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. DU
Ghella [55]

Answer:

Companywide income would increase by $6,000 if West Division is eliminated.

Explanation:

The amount by which the companywide income will increase or decrease if West Division is eliminated can be determined by comparing Revenue with avoidable cost.

Avoidable cost refers to the cost that will be eliminated or not incurred if a firm decides to change the course of a business.

In this question, avoidable cost is simply the cost or expenses that will be eliminated if West Division is eliminated.

Among all the expenses in the question, only Companywide facility-sustaining costs which is $78,000 cannot be eliminated if West Division is eliminated.

Therefore, avoidable cost can be calculated as follows:

Avoidable cost = Salaries for drivers + Fuel expenses + Insurance + Division-level facility-sustaining costs = 210,000 + 30,000 + 42,000 + 24,000 = $306,000

Since, Revenue = $300,000

Decision rule:

1. If revenue is greater than avoidable cost, we have a decrease in income. Therefore, the division should not be eliminated.

2. If revenue is less than avoidable cost, we have an increase in income. Therefore, the division should be eliminated.

Since the revenue of $300,000 is less than the avoidable cost of $306,000, it implies we have an increase in income based on the decision rule 2. The increase in income is calculated as follows:

Increase in income if West Division is eliminated = Avoidable cost – Revenue = $306,000 - $300,000 = $6,000

Therefore, companywide income would increase by $6,000 if West Division is eliminated

Since there would be an increase in income of $6,000, West Division should therefore be eliminated.

4 0
3 years ago
Difference between per<br> behaviour and organisational behaviour
malfutka [58]

Answer:

Organiational behaviour looks at the individual behaviour, then moves to group behaviour, progressively to the organization behaviour, which you can also call the organization culture. It requires skills to understand how the organization and its members affect each other. Areas include frameworks for diagnosing and resolving problems in organizational settings. Human behaviour, call it individual behaviour is a sub-set of organization behaviour.

7 0
3 years ago
If the financial statements include an income statement and a balance sheet but exclude the statement of cash flows, the auditor
USPshnik [31]

Answer:

The auditor should issue a qualified report for the departure from generally accepted accounting principles.

Explanation:

A qualified opinion can be understood as the statement given by an auditor in conjunction with a corporation's audited financial statements in an auditor's report. It was an auditor's judgement that implies a firm's earnings reporting was restricted in scope or that there was a substantial fault with the implementation of generally accepted accounting standards (GAAP)—but hardly one that was widespread.

3 0
3 years ago
The longdashrun supply curve in a perfectly competitive market states that​ _____. A. the longdashrun quantity remains the same
Leokris [45]

Answer: Option C

           

Explanation: Perfect competition refers to a market structure under which there are large number of buyers and sellers each operating at a small level.

In such a market structure the supply curve is a horizontal line that depicts that whatever the quantity is the price will remain the same, that is,  at the equilibrium level.

This happens due to the fact that there are large of number of participants present and no individual have the power to affect the price.

Thus, the correct option is C.

5 0
3 years ago
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