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2 years ago

Write a paragraph that explains the correlation between money supply and economic growth.

Business

2 answers:

serious [3.7K]2 years ago

4 0

Answer:

When the Fed carries on an expansionary monetary policy, increasing the money supply, interest rates should lower. When interest rate decrease, private consumption increases especially through purchases made on credit (e.g. auto loans, home mortgages, greater credit spending, etc.). An increase in private consumption should increase aggregate demand, increasing the gross domestic product (GDP). The problem with expansionary monetary policy is that is also increase the inflation rate which reduces the benefits of the increase in spending.

frutty [35]2 years ago

3 0

The correct answer for this question is this one:
The correlation between money supply and economic growth is directly related because the as the number of money of supply increases, the significance to that with the economic growth is that there is progress. Hope this helps

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The next dividend payment by Dizzle, Inc., will be $2.48 per share. The dividends are anticipated to maintain a growth rate of 4

Juliette [100K]

Answer:

Cost of equity = 10.7%

Explanation:

<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>

<em>The model can me modified to determined the cost of equity as follows:</em>

Cost of equity = D/P + g

d- dividend payable next period, p- price of stock ,, - g- growth rate

D- 4.5%, p- $2.48 , g -4.5%

Cost of equity = (2.48 /39.85) + 0.045

= 10.7%

6 0

2 years ago

In spring 2014, Parmac Engineering Company signed a $160 million contract with the city of Parkersburg, to construct a new city

xz_007 [3.2K]

Answer:

c. $64 million

Explanation:

For computing the revenue recognized, first we have to determine the percentage which is shown below:

= Cost incurred in 2014 ÷ expenses incurred

= $48 million ÷ $120 million

= 40%

And, the contract price is $160 million

So, the revenue recognized would be

= Contract price × percentage

= $160 million × 40%

= $64 million

8 0

2 years ago

PLEASE HELP ASAP!!!!

dimaraw [331]

Answer:

its A

Explanation:

Debt Financing

5 0

2 years ago

Read 2 more answers

The human resource department of Palmer Inc. is aiming to understand the degree of employee engagement in the organization. Whic

weeeeeb [17]

Answer:1

Explanation:

8 0

2 years ago

Feldspar Inc. is considering the capital structure for a new division. Management has been given the following cost information:

34kurt

Answer:

Option 4

Explanation:

In this question ,we have to compute the WACC which is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

For Option 1, it would be

= (0.3 × 10%) × ( 1 - 40%) + (0.7 × 12.5%)

= 1.8% + 8.75%

= 10.55%

For Option 2, it would be

= (0.4 × 10.5%) × ( 1 - 40%) + (0.6 × 13%)

= 2.52% + 7.8%

= 10.32%

For Option 3, it would be

= (0.5 × 11%) × ( 1 - 40%) + (0.5 × 13.5%)

= 3.3% + 6.75%

= 10.05%

For Option 4, it would be

= (0.6 × 11.7%) × ( 1 - 40%) + (0.4 × 14.2%)

= 4.212% + 5.68%

= 9.89%

For Option 5, it would be

= (0.7 × 13%) × ( 1 - 40%) + (0.3 × 15.5%)

= 5.46% + 4.65%

= 10.11%

So based on this, the management should accept option 4 as it derives the best debt asset ratio

The weightage of equity would be come

= 1 - weightage of debt

8 0

2 years ago