Nour is a Top manager whose responsibilities include creating organizational goals and overall strategy for the organization.
In addition to setting rules, standards, and strategic goals, top management is also in charge of leading and directing quality management efforts inside the company. For a range of management system procedures, it should also identify the parties in control and hold them accountable. The top managers' responsibilities include setting the stage for change, cultivating ownership and commitment attitudes, fostering a healthy corporate culture via words and deeds, and keeping an eye on the external business environment.
Top-level managers are in charge of managing and supervising the whole company. Executing organizational plans that adhere to corporate policies is the responsibility of middle-level managers. Setting goals and making choices for the entire organization are among top-level managers' duties.
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the canadian nominal interest rate in 2010 was 1.30%. inflation in 2009 was measured at 3.64%. calculate the real interest rate. round your answer to two places after the decimal. real interest rate: % which of the statements is true? the nominal interest rate is typically greater than the real interest rate due to inflation. the difference between the real and nominal interest rate is equal to the change in gdp. the nominal interest rate is typically less than the real interest rate due to inflation. the real and nominal interest rates are always equal.
The real interest rate is -0.48% and the nominal interest rate is typically greater than the real interest rate due to inflation is a true statement.
As per the question, the Canadian nominal interest rate in 2010 was 1.30% and inflation in 2009 was measured at 3.64%.
The real interest rate can be calculated by Fisher Equation which is given below
Real interest rate=Nominal interest rate- Inflation
To calculate the real interest rate in 2010 we need to know the inflation in the 2010 year which is equal to 1.78%.
Real interest rate=1.30%.-1.78%
=-0.48%
So, the correct statement is the first one which says due to inflation nominal interest rate is greater than the real interest rate.
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what was the book value of the equipment inventory at the six-year point, substituting the new hydraulic lift for the original after the new lift had joined the inventory (in $)?
The book value of the equipment will be $287880
The original cost of the equipment= $377,000
The residual value of the equipment= $47000
Depreciation of original equipment= Original cost of equipment - Residual cost/Useful life
= 377000 - 47000/20
= $16500
The residual value of lift:
Original cost = $15080
Residual value after 20 years = $47000/$377000*15080 = $1880
Annual depreciation of lift = $15080 - $1880/20
$660
Book value after 6 years = $15080 - (6*660)
= $11120
Book value of equipment without substitution after 6 years = 377000 - 6*16500
= 278000
Book value of lift after 6 years = $11120
Book value of inventory after substitution = $278000 - 11120 + 21000
= $287880
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which sections of the uniform commercial code (ucc) address the effect of destroyed goods on contract performance?
Section 28:1-103 of the uniform commercial code (ucc) addresses the effect of destroyed goods on contract performance.
All business transactions in the United States are governed by the Uniform Commercial Code (UCC), a comprehensive body of legislation. It is a uniformly enacted state law rather than a federal one. For interstate business transactions, uniformity of law is crucial in this field.
Businesses can enter into contracts knowing that the terms will be upheld consistently by courts in every American jurisdiction thanks to the UCC's widespread adoption. Because commercial connections are more secure as a result, businesses may expand and the American economy does well. The UCC has been referred to as "the backbone of American commerce" for this reason.
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all of the activities involved in obtaining required materials, supplies, and parts from other firms are called
The whole process of obtaining the necessary goods, services, and parts from other companies is known as purchasing.
What is purchasing ?A company or organization utilizes the purchasing process to buy products or services in order to achieve its objectives. Although many businesses make an effort to establish standards for the purchasing process, procedures can differ significantly between firms. The expediting, supplier quality, shipping, and logistics are often also included in the larger procurement process, which includes purchasing. The organization's purchase criteria and processes are directed by purchasing managers/directors and procurement managers/directors. A three-way check serves as the cornerstone of most businesses' buying strategies. As a result, three organizational departments complete various phases of the purchase process.
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you put money into an account and earn a real interest rate of 6 percent. inflation is 3 percent, and your marginal tax rate is 20 percent. what is your after-tax real rate of interest? group of answer choices
the after-tax real rate of interest is calculated by the fisher effect and is found to be 4.2%
The Fisher effect describes the relationship between the real and nominal interest rates and the expected rate of inflation. It also explains money's neutrality. As such, it is crucial in economics.
Fisher effect :
Real interest rate = nominal interest rate - inflation rate
6 = nominal interest rate - 3
Nominal interest rate = 9
Given that the marginal tax is 20%, the nominal interest rate realized will be:
9 - 20*9 / 100 = 7.2
Now, the real rate of interest =
7.2 - 3 = 4.2
The Fisher Effect, named after economist Irving Fisher, describes the relationship between inflation and both real and nominal interest rates.
According to the Fisher Effect, the real interest rate equals the nominal interest rate minus the expected inflation rate.
The Fisher Effect has been applied to the study of the money supply and global currency trading.
When the real interest rate is positive, it indicates that the lender or investor can outperform inflation.
When the real interest rate is negative, it means that the interest rate charged on a loan or paid on a savings account is not higher than the inflation rate.
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the mcfadden act produced a fragmented banking system where competition was prohibited. the result, in economic terms, was
The McFadden Act led to a fragmented banking industry with no room for competition. the end outcome was improved nationwide bank efficiency from an economic perspective.
What is prohibited example?Anything that is forbidden is not permitted. Stay out of the water if you see a sign that reads "Swimming is prohibited." The word "prohibited" denotes something that was forbade — a no-no — whether it is used as word ("We prohibited his friend from joining") or an adverb ("The prohibited word slipped your lips").
What is prohibited conduct?The term "Prohibited Conduct" refers to unlawful discrimination and harassment based on the protected traits or statuses of another person. The definition also include taking offense at someone for filing a complaint about discrimination or harassment or taking part in an inquiry into illegal behavior.
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you would like to buy shares of sirius satellite radio (siri). the current ask and bid quotes are $4.34 and $4.31, respectively. you place a market buy order for 630 shares that executes at these quoted prices. how much money did it cost to buy these shares? (round your answer to 2 decimal places.)
To buy these shares, the cost of money will be $2,734.20.
Shares are fractional ownership interests in a corporation. For some businesses, shares are a type of financial instrument that allows for the equitable distribution of any declared residual profits in the form of dividends. A stock that doesn't pay dividends doesn't include its shareholders in the distribution of profits.
The calculation is as follows:
According to the data provided in the question
Current ask price = $4.34
Bid quotes = $4.31
Number of markets buy order = 630 shares
As concerned with the above data, the cost to buy these shares equal to
= Number of market buy orders × Current ask price
= 630 shares × $4.34
= $2,734.20
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the price elasticity of supply measures how responsive group of answer choices equilibrium price is to equilibrium quantity. sellers are to a change in buyers' income. sellers are to a change in price. consumers are to the number of substitutes.
Elasticity of supply measures how responsive: sellers are to a change in price.
Definition of Supply Elasticity and its LawElasticity of supply is a term in microeconomics that interprets the influence of large or small perceptions of changes in the quantity of goods offered due to price changes.
Based on economic theory, in the law of supply and demand, the supply of an item or service will increase if the price increases. And vice versa, the supply of an item or service decreases when the price drops.
Thus, in order to measure such a change, we need the concept of elasticity of supply that can measure the level of quantity supplied in response to a change in price.
Types of Elasticity of SupplyTypes of Elasticity of Supply- Perfectly Inelastic Supply
A good or service has a perfectly inelastic supply if the quantity supplied at any price. The elasticity of supply as such is zero, meaning that there is no elasticity.
For example, this type of elasticity is the supply of exclusive items such as the Mona Lisa painting. Whatever the price offered, the demand for the supply of these goods will not increase.
- Relatively Less-Elastic Supply
When the change in supply is relatively small compared to the change in price, we can say that the product has a relatively less elastic supply. In this case, the price elasticity of supply is assumed to be less than 1.
- Relatively Greater-Elastic Supply
If the change in supply is relatively more than the change in price, we assume that the product has a relatively more elastic supply. This means that the price elasticity of supply is greater than 1.
- Unitary Elastic
For a product with a unit elasticity of supply, the change in the quantity supplied of a product is exactly the same as the change in its price. In other words, changes in price and supply of goods or services are proportional to each other. That means, the value of the price elasticity of supply in such a case is equal to 1.
- Perfectly Elastic Supply
A good or service with perfectly elastic supply has infinite elasticity. In such a case, the supply becomes zero.
This type of elastic supply reflects the fact that suppliers of such a commodity are willing to supply some of the product at a higher price. In a perfectly elastic supply curve, the straight line is parallel to the quantity or quantity of the product.
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sandy has the option of obtaining life insurance through her place of employment. she will not need to take a physical exam. this type of policy would be a/an policy.
Accelerated benefits, commonly referred to as "living benefits," are the proceeds from a life insurance policy that are given to the policyholder before to his or her passing.
Although they may be included in the policies themselves, riders or attachments to new or existing policies are more frequently used to provide the benefits. This lists what is covered as well as a summary of the insurance company's main guarantees. The insurer commits to a number of actions in the Insuring Agreement, including paying losses for covered perils, offering particular services, or agreeing to defend the insured in a liability lawsuit. A conditional assignment known as a collateral assignment of life insurance designates a lender as the main beneficiary of a death benefit that will be used as collateral.
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which of the following is a true statement? a) individuals qualify for the moving expense deduction only if they change employers. b) individuals qualify for the moving expense deduction if their employer does not pay for the moving expenses. c) moving expenses are deductible from agi. d) moving expenses are generally not deductible.
a) individuals qualify for the moving expense deduction only if they change employers is a true statement.
Moving expenses are not deductible. Unless lawmakers change the tax code, this could change after 2025.
Employees may find it difficult and costly to relocate for business reasons. As a result, many employers pay for employee moving expenses.
Employees' moving expenses were once tax deductible, but that deduction was eliminated in the 2018 tax year.
Moving expenses incurred by an employee can be deducted as a business expense if they are included in the employee's standard W-2 wages.
Moving expenses will be tax-deductible again in 2026, assuming no further changes to tax law.
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what does pei-chia lan call filipino and indonesian domestic workers laboring for newly rich families in taiwan?
A study of Filipino and Indonesian caretakers who were employed by newly wealthy families in Taiwan reveals how women—both employers and workers, maids and employers—create new global migration flows that unexpectedly destabilize gendered and patriarchal roles.
Is it through action that gender identity is expressed?Gender performance is the act of expressing one's gender identity.
Who are the four genders?Nouns in English are classified as masculine, feminine, common, or neuter.
Does Pangender exist?Pangenders are people who believe they cannot be classified as either male or female. The queer community intends for the term to mean "all genders" and is inclusive.
Which genders are there?Benestad has observed seven distinct genders through these real-life conversations: Personal, Eunuch, Intersex, Transgender, Nonconforming, and Female
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the western capital growth mutual fund has: total assets $ 837,000,000 total liabilities $ 20,200,000 total number of shares 40,000,000 what is the fund's net asset value (nav) per share?
The fund's net asset value (nav) per share is 30.95 net asset value.
What is the net asset value?When a bank's price is provided by a trader or online financial portal, the net asset value for a share (NAVPS) of vehicle is also provided. Although NAVPS is determined only once each day, and the worth of the property acquired by a company may alter each day, this number is different from the firm's market price.
Total assets are $ 837,000,000
Total liabilities are $ 20,200,000
The total number of shares is 40,000,000
The net asset value formula is computed as
Net asset value = (assets - liabilities) / total shares
= (750,000,000 - 7,200,000) / 24,000,000
= 30.95 net asset value
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______ are important because they provide utilities to consumers and have a significant positive impact on the economy.
Retailers are important because they provide utilities to consumers and have a significant positive impact on the economy.
The economic utility of a decent service is vital to know. As a result, it directly influences the demand, and thus worth, of that smart or service.
Consumerism is the concept that increasing the consumption of products and services purchased within the market is often a fascinating goal.
They provide prices within the type of client utilities. They need a positive impact on the economy. For suppliers, the foremost valuable edges provided by retailers are the opportunities they provide for reaching the supplier's target market and building products.
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Deborah has just gotten a request from a candle vendor. She is looking for a place to sell her newest holiday candles. What type of event might Deborah suggest the vendor take part in?
Question 1 options:
theater style meeting
forum
exposition
boardroom style meeting
Forum Events, an open forum for discussion in the public. For those who are interested in local history, the club offers a forum: a venue for open discourse or the presentation of views.
What is Holiday Season?The time from Thanksgiving to New Year's is usually referred to as the holiday season. In America, the conclusion of Thanksgiving day (informally) ushers in the holiday season. We are rapidly nearing Christmas, Kwanzaa, Hanukkah, and the new year. Building a solid connection between family and our community via holiday customs is crucial. They provide us a sense of belonging and a channel through which we can express our values. They support our family gatherings and strengthen our ties to the past.
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when contracts for the sale of real property are placed with a disinterested third party for executing and closing, they are said to beplaced in: group of answer choices safekeeping a title company of financial institution assignment escrow
The sale of real property are placed with a disinterested third party for executing and closing, they are said to be placed in escrow.
What is real property ?Real property, in the United States and Canada only, land means land owned by a person and any property incorporated into or attached to property, including crops, buildings, machinery, wells, dams, ponds, mines, and canals.It means a structure such as a road. The term is historical and arose from a now-defunct form of litigation, distinguishing between real property disputes. Real property or personality is all property that is not real property. In countries where real estate is privately owned, the status of real estate in the real estate market, where real estate agents operate on the real estate market, is protected by civil law. Scottish civil law refers to property as "inheritance", while French law refers to it as immovable.To learn more about real property from the given link ;
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which citation in the professional standards outlines the auditor's responsibility regarding obtaining a written representation letter from management under these circumstances?
PCAOB AS 2201 Par. 87 citation in the professional standards outlines the auditor's responsibility regarding obtaining a written representation letter from management.
This standard establishes requirements and provides guidance for auditors who are hired to perform an audit of management's assessment1 of the effectiveness of internal control over financial reporting ("the audit of internal control over financial reporting") in conjunction with an audit of the financial statements.
Internal control over financial reporting that is effective offers reasonable certainty about the dependability of financial reporting and the compilation of financial statements for external purposes. If the firm has one or more major vulnerabilities, its internal control over financial reporting cannot be regarded effective.
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short-run equilibrium. the economy is in short-run equilibrium. to move the economy to potential output, the government should reduce its spending by an amount equal to
When the total amount of output demanded and output supplied are equal, the economy is in short-run equilibrium.
How does the economy transition from a short-term to a long-term equilibrium?When the total amount of output and the total amount of demand are equal, we are in short-run equilibrium. When prices adjust to changes in the market and the economy functions to its full potential, we call this long-run equilibrium.
How much will the short-term equilibrium output be?When the level of aggregate output demanded and the level of aggregate output supplied are equal, an economy is said to be in short-run equilibrium. The short-run equilibrium output in the AD-AS model can be found at the intersection of the Short-Run Aggregate Supply (SRAS) and the Aggregate Demand (AD).
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what happens to the price of a bond with a 5% coupon rate if interest rates for similar bonds go up to 8%?
The price of bonds will decrease when the interest rates go up to 8%.
Bond prices and interest rates have an inverse relationship with each other. When the interest rate increase the price of bonds decrease and when the interest rate decreases the price of bond increase.
The coupon rate is decided by the purchaser and the interest rate is decided by the lender. When the coupon rate is higher than the interest rate the price of bonds will rise and when the coupon rate is lesser than the interest rate the bond prices will fall.
As the coupon rate is lesser than the interest rate so the price of bonds will fall.
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a company that manufactures athletic shoes been asked to provide shoes to a local football team. in return, the football team will put the company's name on their jerseys. what is the name for this category of promotional tool?
A company that manufactures athletic shoes been asked to provide shoes to a local football team. Sports marketing is the name for this category of promotional tool.
What's marketing blend in sports marketing?
The marketing blend is pivotal because it defines the sport business, and much of the sport marketer's time is spent on colorful functions within the marketing blend. The marketing blend is the strategic combination of the product, price, place and creation rudiments.
Promotional tool:Promotional tools are strategies, styles or coffers that impel consumers to buy a product or service. numerous marketing and advertising professionals use them to raise mindfulness of a new product or increase deals of a particular item or service.
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the beta coefficient of zed corporation is equal to 0.7 and the required rate of return on the stock equals 12 percent. if the expected return on the market is 12.5 percent, what is the risk-free rate of return?
Zed Corporation's beta coefficient is 0.7, and the required rate of return on the stock is 12%. If the expected market return is 12.5%, the risk-free rate of return is 10.83%.
Stock in finance refers to the shares of ownership in a corporation or company. A single share of stock represents fractional ownership of the firm in proportion to the total number of shares. This often entitles the shareholder to a percentage of the company's earnings, cash from asset sale, or voting power, sometimes divided in proportion to the amount of money each stockholder has invested. Stocks are deposited with depositories in electronic form, commonly known as a Demat account. When a firm issues additional shares, current shareholders' ownership and rights are eroded in exchange for cash to continue or grow the business.
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What causes the total amount of interest paid on a mortgage to be so much higher than on other types of debts?.
Credit Score causes the total amount of interest paid on a mortgage to be much higher than other types of debts. Your credit score is one issue that may affect your charge per unit.
In general, shoppers with higher credit scores receive lower interest rates than shoppers with lower credit scores. Lenders use your credit scores to predict how reliable you will be in paying your loan.
Mortgage rates area units tied to the fundamental rules of provide and demand—factors like inflation and economic process. A mortgage is that the transfer of an associate interest in specific unmovable property for the aim of securing the payment of a cash advance. Investors, even those with prime credit ratings, were far more seemingly to default than non-investors once costs fell.
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4. (1pts) the next dividend payment by wyatt, inc. will be $1 per share. the dividends are anticipated to maintain a growth rate of 10% forever. if the stock currently sells for $40 per share, what is the required return?
Wyatt, Inc.'s upcoming dividend payment will be $1 per share. It is expected that the dividend growth rate would always be 10%. If the company is now trading at $40 per share, the needed return is 12.5%.
How does rate of return work?The investment strategy of the businesses, groups, and people is to generate profits greater than the initial investment. The capital asset pricing model can be used to determine the expected rate of return for an investment in a stock that regularly declares dividends.
The data needed to determine the necessary rate of return is
The dividend that will be paid is $1.
The rate of dividend growth is 10%.
Currently, the share price of the stock is $40.
Today's necessary return will be determined using the dividend growth model formula.
R= (D1 / P) + G
Where
P = present-day stock price
D1 = future dividend payment
R= necessary a rate of return
G= pace of dividend growth
In the formula, changing the numbers
R = (1 / 40) + 0.1
=0.025 + 0.1
=0.125 or 12.5%
The required return is 12.5%
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an organization learns from a social media site that less than 10 percent of users who visit their page engage with the video that is pinned to the top. this is an example of what type of information?
A company discovers through a social media platform that fewer than 10% of visitors to its page interact with the top-pinned video. This is an illustration of information that comes from customer interaction.
Customer contact is the exchange of information between a company and a client. This includes clients calling you for assistance or contacting you via social media with inquiries.
Every time you connect with a customer, you have the ability to influence how they feel about your company. Based on each encounter, customers modify their behavior. For your business, these adjustments might be beneficial or unprofitable. When you use good customer interaction techniques, your firm may flourish.
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the dominant factor in choosing a subchapter s corporation as a form of doing business instead of a regular corporation continuity. transferability of owners interest. liability. management control. none of the above.
Option 2. The dominant factor in choosing a subchapter s corporation as a form of doing business instead of a regular corporation continuity is liability
What is the subchapter s corporation?S corporations, often known as subchapter S corporations, are taxed on a "flow-through" basis. This implies that tax obligations from income (or deductions from losses) are transferred to the shareholders of the corporations for individual declaration.
For the purposes of federal taxation, S companies are businesses that choose to pass through to their shareholders corporate income, losses, deductions, and credits.
Regardless of its tax status, a S corporation offers owners limited liability protection, which is a significant benefit. Limited liability protection protects the owners' personal assets from the demands of the company's creditors,
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your first job is in hotel management and recently you were promoted to hotel manager for a large convention hotel in downtown new orleans. answer the following questions given the information below for one day. what is the total contribution to profit and overhead?
$41,000 is the total contribution to profit and overhead for one day in hotel in downtown new orleans.
given,
Contribution by Business Hotel Customers is
= Sales - variable cost
= (100-25) ×280
= $21,000
Now
Contribution by Convention Association Hotel Customers = (Sales - variable cost)*400
= (75 - 25)× 400
= $20,000
Total contribution to profit and overhead is
= $21,000 + $20,000
= $41,000
$41,000 is the total contribution to profit and overhead.
the complete question is:
Your first job is in hotel management and recently you were promoted to Hotel Manager for a large convention hotel in downtown New Orleans. Answer the following questions given the information below for one day. What is the total contribution to profit and overhead?
Characteristic/Variable Business Hotel Customers (B) Convention Association Hotel Customers (C)
Customers for this day (D) 280 room nights rented (DB) 400 room nights rented (DC)
Average price/room night (VC) $100 (PB) $75 (PC)
Variable cost/room night (VC) $25 $25
Maximum price/room night (called the rack rate) $150 $110
Maximum number rooms available for sale this day 300 room nights available 700 room nights available
a. $39,500
b. $44,170
c. $38,750
d. $41,000
e. $34,567
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josefina is the only seller of sopapillas in town. last week, she sold 200 sopapillas, and the marginal revenue of the 200th sopapilla was $1.50 and the marginal cost was $1.75. is josefina maximizing her profit? a) yes, josefina is maximizing her profit. b) no, josefina is producing less than the optimal quantity. c) no, josefina is producing more than the optimal quantity. d) no, josefina is not maximizing her profit despite producing the optimal quantity.
Josefina is the only seller of sopapillas in town. last week, she sold 200 sopapillas, and the marginal revenue of the 200th sopapilla was $1.50 and the marginal cost was $1.75. Considering this option B is correct which is no Josefina is producing more than the optimal quantity.
When the marginal revenue is less than the marginal cost, the marginal profit is negative and a lesser quantity of goods should be produced. Marginal revenue means the increase in revenue that results from selling one additional unit of output. Although it can remain constant when the output remains stable and will eventually slow down as the output increases which follows the law of diminishing returns. Here the marginal revenue is lower than the marginal cost at $1.50 < $1.75 so Josefina should produce lesser sopapillas but she is producing more than the optimal quantity hence profit is not maximized.
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the internal rate of return is group of answer choices the discount rate that makes npv negative and the pi greater than one the discount rate that makes the npv positive the discount rate that equates the present value of the cash inflows with the present value of the cash outflows the rate of return that makes the npv positive
The IRR or internal rate of return is a discount rate that equates the present value of the cash inflows with the present value of the cash outflows.
What is the Internal rate of return?Internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of a potential investment. IRR is the discount rate that drives the net present value (NPV) of all cash flows to zero in a discounted cash flow analysis.The calculation of IRR is based on the same formula as NPV. Note that the IRR is not the actual dollar value of the project. It is the annual returns that drive the NPV to zero. In general, the higher the internal rate of return, the better the investment. Because IRR is consistent across different types of investments, it can be used to rank multiple potential investments or projects relatively evenly. In general, when comparing investment options with other similar characteristics, the investment with the highest IRR may be considered the best.to know more about IRR refer to:
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assume the following scenario: the price of the product is $20/unit. the marginal cost is also $20. the average variable cost is $25, while the average total cost is $27. what would you recommend this perfectly competitive firm to do? question 7 options:
A firm's average variable cost (AVC) in economics is calculated by dividing its variable costs by the volume of output it produces.
What is average variable cost:
The entire variable cost per unit of production is known as the average variable cost (AVC). Total output is subtracted to get the total variable cost. Total variable cost (TVC) refers to all expenses, including labor and supplies, that change depending on output. The simplest method to tell if a cost is variable is to look at if it varies as the output does.
The AVC will be used by businesses that aim to maximize profits to decide whether to halt short-term manufacturing. Given the production they are creating, if the price they receive for the good exceeds the AVC, they are at least paying all variable costs and some fixed costs. Fixed costs are expenses incurred that are fixed at a specific price regardless of how much is produced; they do not change with production. The rent on the building where the commodity or service is produced or rendered is the finest illustration. The rent will always be the same, regardless of how many units you generate or clients you service.
You would be better off continuing production as long as the price is higher than the AVC and covers some of the fixed costs. The company might opt to halt production in the short term if the price falls below the AVC because it no longer covers any fixed expenses or all variable costs. Therefore, the company would like to only pay the fixed costs rather than incur any variable expenditures.
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what would be your first response if you were asked your personal thoughts on strategic management as a tool
Strategic managements provides overall direction by developing overall direction by developing plans and policies designed to achieve objectives and then allocating resources to implement the plans.
What do we learn in strategic management?
In strategic management we can manage business and projects proactively with a focus on long term strategy, rather than reacting. It helps you to ensure that on the latest business growth strategies as well as on the newest tools for strategic planning models.
It helps has a specific goals that day to day basis, weekly, monthly and sometimes yearly. The organization helps in setting of competitive environment and coming up with strategies to help you achieve organization goals.
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(a) assume that demand for money is constant and inelastic (does not dependon nominal interest rates). what should be the growth rate of the money supply to keep inflation at 0%?
10% should be the growth rate of the money supply to keep inflation at 0%.
According to the Quantity Theory of Money: M x V = P x Y.
% change increase + % increase in velocity = % increase in price + % increase in output
x + 0 = 0% + 10% (since velocity is constant)
Thus, growth in money supply = 10%.
The amount of money in circulation at any given time is referred to as the money supply. Although there are various ways to define "money," demand deposits and circulation-level money are frequently used as conventional metrics.
According to the quantity theory of money, the currency is neutral. This does not imply that variations in the money supply are without consequence. Inflation is a possibility when the Federal Reserve expands the money supply.
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