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sattari [20]
2 years ago
8

According to the quantity equation, the price level would change less than proportionately with a rise in the money supply if th

ere were also either a a. rise in output or a rise in velocity. b. fall in output or a rise in velocity. c. rise in output or a fall in velocity. d. fall in output or a fall in velocity.
Business
1 answer:
Ira Lisetskai [31]2 years ago
8 0

Answer:

either a rise in output or a fall in velocity.

Explanation:

As per the quantity equation, if the level of the price would varies and less than the increase in the money supply so there should be either a rise in the output or the decline in the velocity

The quantity equation is

MV = PY

where

M denotes money supply

V denotes velocity

P denotes price level

Y denotes output

As the money supply would increase so it would be balance when there is a decline in a velocity or increase in output so that the price would remains the same

hence, the above represent the answer

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Jones borrowed $960 from the bank, issuing a 12.5%, 4-month promissory note. Assuming that the note is issued and paid in the sa
Anestetic [448]

Answer:

(A). A Debit to Notes Payable for $960

Explanation:

In case of a promissory note, there are three parties to it, namely,

  1. Maker i.e Jones here
  2. Payee, to whom money is to be paid i.e the bank here
  3. Holder i.e the one who currently holds the promissory note i.e the bank here

Upon issue of promissory note, in the books of the maker (Jones), the entry is,

Name Of The Bank A/C                    Dr. $960

      To Notes Payable A/C                              960

(Being a promissory note issued to bank against a payment of $960)

Upon maturity i.e date of payment, the entry would be,

Notes Payable A/C                           Dr.  $960

     To Cash/Bank A/C                                      960

(Being payment of promissory note honored)

Thus, the correct answer would be, (A) a debit to notes payable account for $960.

7 0
2 years ago
A consumer's weekly income is $300, and the consumer buys 5 bars of chocolate per week. When income increases to $330, the consu
EastWind [94]

Answer:

The income elasticity of demand for chocolate by this consumer is about 1.90

Explanation:

the change in quantity = (6 - 5)/(6 + 5)

                                      = 0.091

the change in income = (330 - 300)/(330 + 300)

                                     = 0.048

the income elasticity = 0.091/0.048

                                   = 1.90

Therefore, The income elasticity of demand for chocolate by this consumer is about 1.90

7 0
2 years ago
If we accept "consumer satisfaction" as the objective of our macro-marketing system, this means that: consumer educators should
Ad libitum [116K]
If we accept "consumer satisfaction" as the objective of our MACRO-marketing system, this means that <span>each consumer should decide how best to satisfy his or her own wants. In marketing, there are 4 Ps which are product, price, plan and promotion. Regarding MACRO-marketing, this is the study on how marketing (the 4 Ps) impacts our economy and society. Since each consumer can decide what is best for them, experts then see what each consumer desires and tries to make items appeal to them. </span>
5 0
2 years ago
Shannon Corp. uses the aging method to account for bad debt expense. Shannon determines that a customer account of $10,000 shoul
lozanna [386]

Answer:

The write off of the account should include a debit to the allowance for uncollectible accounts, and a credit for bad debt expense:

Account                                             Debit              Credit

Bad Debt Expense                                                  $10,000

Allowance for Uncollectible

Accounts                                          $10,000

This is because under the aging method, when an account is actually written-off, it must be charged against the bad debt expense that was forecasted or anticipated earlier.

6 0
2 years ago
A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.6%, and sells for $1,140. Interest is
nordsb [41]

Answer:

Price of bond=948.8583731

Explanation:

<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV). </em>

Value of Bond = PV of interest + PV of RV

Semi-annual interest = 8.6% × 1,000 × 1/2 =43

Semi-annual yield = 9.4%/2=4.7 %

<em>PV of interest payment</em>

PV = A  (1- (1+r)^(-n))/r

A- 43, r-0.047, n- 20

= 43× (1-(1.047)^(-10)/0.047)

= 549.7724893

<em>PV of redemption Value</em>

PV = F × (1+r)^(-n)

F-1000, r-0.047, n- 20

PV = 1,000 ×   1.047^(-20)

PV = 399.0858837

Price of Bond

549.772 + 399.085

=948.8583731

4 0
2 years ago
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