What direction of change in velocity could explain the price level increasing by a smaller percentage than the money supply? What would this change in velocity imply about the frequency with which money changes hands?

Answers

Answer 1

1. A direction of change in velocity that explains an increase in price level by a smaller percentage than the money supply is: A decrease in velocity.

2. An effect of this change in velocity (decrease) with respect to the frequency with which money is exchanged (changes hands) is that: A decline or decrease in velocity simply means that money changes hands less frequently.

What is money?

Money can be defined as a recognized economic unit that is generally accepted by the people as a medium of exchange for goods and services, as well as repayment of debts such as loans and taxes across the world.

Hence, money is a financial asset that is typically used for the purchase of goods and services.

What is the velocity of money?

The velocity of money refers to a measure of the rate at which money is being used by consumers for the purchase of goods and services.

Basically, the velocity of money can be used to achieve the following:

Measure the economic and financial health of a country.Measure the rate at which money is being exchanged (changes hands).Measure the circulation of money in an economy.

Mathematically, the velocity of money is calculated by using this formula:

[tex]V = \frac{PY}{M}[/tex]

Where:

P is the price level.M is the quantity of money.Y is the level of production or quantity of output.

Generally, an increase in price level by a smaller percentage than the quantity of money supplied represents a decrease in the velocity of money. Also, an effect of a decrease in velocity with respect to the frequency with which money is exchanged (changes hands) simply means that money changes hands less frequently.

In conclusion, the frequency with which money is exchanged (changes hands) should be equal to the quantity of money in an economy multiplied by the average number of times each unit of currency (money) is being spent by the people living in a country.

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Related Questions

In bankruptcy, a(n) _________ is the representative of an estate and has the capacity to sue and be sued on behalf of the estate.

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The administrator or executor is representative of an estate which has the capacity to sue and be sued on behalf of the estate.

In bankruptcy, the administrator or executor is the representative whose responsibilities is to possess the asset, pay creditors and distribute the remaining assets or other beneficiaries of the bankrupted company.

Usually, the administrator and executors are appointed when the bankruptcy of a business is declared and ascertained.

Therefore, the administrator or executor acts as representative of an estate which has the capacity to sue and be sued on behalf of the estate.

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Judith, a salesperson for an automobile firm, gives a presentation to a buying agent. During her presentation, she gives the buyer a letter from a customer in New York. The letter praises the efficiency of the supply chain process of Judith's firm and compliments the punctuality and timely delivery of the products. This letter is an example of a(n) _____.

Answers

Answer:

Testimonial

Explanation:

Companies sometimes convert receivables to cash before they are due by selling them or using them as security for a loan. The reasons that a company may convert receivables before their due date include: (Check all that apply.)

Answers

Answer: to quickly generate cash and to reduce risk of nonpayment

Explanation:

A diversification strategy should enable a company or its individual business units to create value in the value chain to:

Answers

A diversification strategy should enable a company or its individual business units to create value in the value chain to: establish differentiation and increase pricing options.

Albert Inc. has both common and preferred stock outstanding. Which should be listed first in the stockholders' equity section of the balance sheet?

Answers

Answer: Preferred Stock

Preferred Stock should be listed first in the stockholders' equity section of the balance sheet

What is the stock price?

A share price is the price of a single share of a company's salable equity shares. In layman's terms, the stock d. Stock market Analysts in economics and financial theory utilize random walk techniques to model the behavior of asset prices, particularly share prices on stock exchanges.

A type of stock called preferred stock combines traits from both stocks and bonds. Similar to bonds, preferred shares pay out cash dividends, frequently at a higher yield than bonds while carrying less risk than common stock.

A stock is a form of security that indicates the holder has proportionate ownership in the issuing corporation and is sold predominantly on stock exchanges. Corporations issue stock to raise funds to operate their businesses. There are two main types of stock: common and preferred.

Therefore, Preferred Stock should be listed first in the stockholders'

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In the context of Internet-enabled supply chain management (SCM), which SCM activity involves bargaining and renegotiating prices and term agreements

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According to the business information system, in the context of Internet-enabled supply chain management (SCM), the SCM activity which involves bargaining and renegotiating prices and term agreements is "Purchasing or Procurement."

This is because the Purchasing or Procurement activities involve getting and accepting deals or contracts of purchasing commodities from the seller.

Purchasing or Procurement activity typically involves the process of tendering and bidding process.

Hence, in this case, it is concluded that the correct answer is "Purchasing or Procurement."

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suppose the government decides to intervene to bring the economy back to the natural level of output by using

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Government are known to set u different policies to regulate the economy. Suppose the government decides to intervene to bring the economy back to the natural level of output by using Expansionary monetary policy.

Expansionary monetary policy is known to expand the money supply faster than normal or even lower short-term interest rates.

It is known to be set up by central banks and comes about through open market operations. etc

This monetary policy often increases the money supply in an economy.

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What are the three (3) main goals for a market economy?
A. Growth, High Employment, Price Stability
B. Hight Demand, High Employment, Price Stability
C. Growth, High Demand, Price Stability

Answers

Answer:

A) Growth, High Employment, Price Stability

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When current output is greater than potential output, which of the given monetary policies is the Federal Reserve (the Fed) likely to enact

Answers

When the current output is more than the potential output the fed is likely to enact decreasing reserves to increase interest rates.

The reason why they would have to do this is based on the fact that when the actual output in the economy is more than the potential output, It means that there is an inflationary gap.

In order to close this gap, the fed would have to reduce the aggregate demand, thereby raising the rate of interest. This would in turn lead to the fall in consumption and fall in saving.

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When Coca-Cola creates a website within its website called MyCoke where consumers can create a profile, and exchange thoughts, ideas, and more among themselves, it has developed what is called a __________. Multiple choice question.

Answers

Answer:

web comunity

Explanation:

An author can register his or her copyright application with the _____. International Trade Administration (ITA) International Trade Administration (ITA) US Copyright Office US Copyright Office US Patent and Trademark Office (USPTO) US Patent and Trademark Office (USPTO) Department of Commerce (DOC)

Answers

Answer:

United States copyright office

Explanation:

hope this helps!

Carlton Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $126,000. If the sales tax rate is 5%, what amount must be remitted to the state for February's sales taxes

Answers

Based on the information given the amount that must be remitted to the state  for February's sales taxes is $6,000.

Using this formula

Remitted amount=[February Total receipts÷(1+Sales tax rate)]×Sales tax rate

Where:

February Total receipts=$126,000

Sales tax rate=5%

Let plug in the formula

Remitted amount=[$126,000÷(1+0.05)]×0.05

Remitted amount=($126,000÷1.05)×0.05

Remitted amount=$120,000×0.05

Remitted amount=$6,000

Inconclusion  the amount that must be remitted to the state  for February's sales taxes is $6,000.

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a person who evaluates people primarily on the basis of their membership in a particular group is

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Prejudiced is a person who evaluates people primarily on the basis of their membership in a particular group.

People form or develop an opinion about other persons due to them being in a group. People who engages in this act does so without tangible reason.

An example of a prejudiced person is having dislike against a particular store, not necessarily because of what they offer but personal dislike for stores.

Therefore a prejudiced is a person who evaluate people based on their membership of a particular group.

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Suppose that a firm in a competitive market is currently maximizing profit at an output of 50 units. If the current price is $9, the marginal cost of the 50th unit is $9,and the average total cost of producing 50 units is $4, what is the firm's profit

Answers

Answer:

437

Explanation:

50 x 9 = 450-13=437

Question Mode Multiple Choice Question When a company considers putting together a sales force, it may choose to hire salespeople directly or use ______. Multiple choice question. advertising executives manufacturer's representatives volunteers college students

Answers

The company may choose to hire the salespeople directly or use the advertising executives to set up a sales force.

The advertising executives is like a party that acts as link between its principal and its clients

The advertising executives works for both the advertising firm and the clients that wishes to advertise through the firm.

Hence, the company may opt to hire an advertising executives so as to facilitate easy advertisement of its product on sales with the advertising firm.

In conclusion, the company may hire the salesperson and advertising executives.

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The Federal Reserve implemented a series of new policies and tools in response to the 2007-2008 financial crisis and recession. Many economists believe these policies helped avert another Great Depression, but exacerbated what problem in the financial system

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Considering the situation described the many economists believe these policies helped avert another Great Depression but exacerbated the inflation problem in the financial system.

This is because the new policies and tools used to tackle the 2007-2008 financial crisis and recession was based on Keynesian economics.

However, while Keynesian economics concentrates on regulating aggregate demand to solve or prevent economic recessions, it is considered inflationary.

This is because it is believed that these policies encourage lower tax rates and increase the national deficit to ensure there is employment.

However, with more money in circulation, many economists believed it would cause inflation and more income disparity.

Hence, in this case, it is concluded that the correct answer is Inflation.

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Which of the following would most likely be considered an expense in a budget?
A. Groceries
B. Rent
C. All of these
D. Car Loan

Answers

Answer:

C

Explanation:

Everything in life is an expense for me

A(n) _____ is a tangible indirect reward provided to employees for organizational membership. Group of answer choices spot bonus retirement plan equity award merit raise

Answers

A retirement plan is a tangible indirect reward provided to employees for organizational membership.

Retirement planning simply means the financial strategies of investments, savings, that are meant to sustain an individual during retirement.

The main key to a secure retirement is to plan ahead. A retirement plan is a tangible indirect reward provided to employees for organizational membership. This is vital for the person to be able to meet his or her financial needs after retirement.

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PLEASE HURRY-ITS AN IMPORTANT EXAM AND I'M STUCK ON THIS QUESTION THAT'S PROBABLY HONESTLY UPER EASY!!!! Self-management refers to how an individual organizes their time and work tasks so that they also have opportunities to engage in self-care.

True

False

Answers

Answer:

i think its true

Explanation:

Answer:

true

Explanation:

self meaning me myslef or I management meaning organized or put together.

all round, a new virtual music store, is trying to compete with itunes. one thing all round did was count the number of products sold and units produced. where are they in the control process?

Answers

Based on the information given, it can be inferred that they're in the measuring performance of the control process.

Control process simply means the collection of information about a system in order to make a vital decision.

Since the new virtual music store, is trying to compete with itunes and count the number of products sold and units produced, it can be deduced that the company is measuring performance.

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1. What's the main reason our culture has normalized credit cards over the past 60 years? What can we do to change the normalization of debt in the future?​

Answers

Our culture has become accustomed to debt mainly because the capitalist system in which we find ourselves favors the management of loans for the acquisition of goods and services.

These, due to their cost, are difficult or impossible to access through cash payments without any type of installment or ease of payment.

Therefore, credit cards are ways of acquiring debt to finance certain consumption, which is why they have become a financial tool that is totally socially accepted.

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Which clause states that the written agreement accurately reflects the final, complete version of the agreement

Answers

Merger Clause Is the answer

What is the answer to number 1 and 2​

Answers

A and Dare the answers

Say's Law argues that a given ____________________ must create an equivalent ________________________ somewhere else in the economy. potential GDP; value of supply total quantity of goods; price level for output natural rate of unemployment; full employment GDP value of supply; value of demand

Answers

Based on the economic theory of demand and supply, Say's Law argues that a given "value of supply" must create an equivalent "value of demand" somewhere else in the economy.

This is based on the idea that supply would deduce the size of the macro-economy, which in turn makes sense in the long run.

Jean Baptiste Say is a French economist famous for being an adherent supporter of business competition, free trade, and removing restraints on business activities.

His Say's law was famous as it tried to define the market condition. Say's law is sometimes referred to as the Law of Market.

Hence, in this case, it is concluded that the correct answer is option D. "value of supply; the value of demand."

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the owl’s roost started out as a roadside farm stand that sold its organic fruits, vegetables, and homemade baked goods to customers driving by. as the popularity of its products grew, it began selling to the local markets, which made it easier for customers craving an owl’s roost peach pie to buy the pie directly from the nearby market, rather than from the farm stand, which was farther away. what type of marketing channel does this situation illustrate?

Answers

Marketing channels are employed in a bid to aid the distributorship of goods to customers. The marketing channel that was employed by Owl's Roost in the above example is;

Indirect Marketing Channel with one Intermediary

Indirect marketing or indirect selling occurs when businesses employ one or more intermediaries to help out in the distribution of their goods to customers. This is what Owl's Roost applied in this case.

The local market that was employed to aid distribution is the one intermediary that Owl's Roost used to sell its organic fruits and vegetables.

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Harry is a salesperson at Lenic Technology. When demonstrating the company's new 3D printer to a prospective buyer, Harry should:

Answers

Answer:

make sure the product being demonstrated is typical of what is being reccomended

Explanation:

A _________ specializes in developing plans and recommendations that meet the software and system needs of an organization.

Answers

A person that develop plans as well as making recommendations so that software and system needs can be met in an organization is systems analyst.

systems analyst can be regarded as a person that utilize his experience in analysis and design techniques to make recommendation in term of needs of the organization.

This could be in Tech. industry such as in software and others.

Therefore, systems analyst is correct.

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even though firms in competitive price-searcher markets do not produce at minimum atc, competitive price-searcher markets may still be consistent with economic efficiency because

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Firms are known to be free to set price and also to face strong competitive pressure. Competitive price-searcher markets may still be consistent with economic efficiency because they provide consumers with a greater diversity of products.

Firms in competitive price-searcher markets that has a small entry obstacles often face a downward sloping demand curve.  Competition often exists from existing firms and new rivals.

Firms that exist in a perfectly competitive market are known to be price takers due to the fact that once the market determines an equilibrium price for the product, firms need to accept the stated price.

For an individual to sell a product in a perfectly competitive market, one must  just be happy with the price.

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a company chooses to price its products by value-based pricing. in order for this type of pricing to be most effective, what additional tactics should be included with the price?

Answers

The additional tactics to be included is use of value-based price in conjunction with all elements of the marketing mix communicating value to the customer

Basically, a value-based pricing is a prices fixing strategy based on consumers perceived value of the product in the market

This type of pricing strategy maintains a certain price level to prevent customers from looking out for competitors product.

Hence, the additional tactics to be included is elements of the marketing mix communicating value to the customer

In conclusion, the Option B is correct.

The missing option includes "a.) employ a general market approach to pricing which considers what the market as a whole sees as valuable in a product or service b.) use a value-based price in conjunction with all elements of the marketing mix communicating value to the customer c.) offer a middle price point with the established price and tout the singularity of the product’s value"

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________ measures the frequency that someone who clicks on an ad makes a purchase, likes a site, or takes some other action desired by the advertiser.

Answers

The term that describes the frequency of click by people on a particular ads on a site as well as actions by advertiser is conversion rate.

Conversion rate can be regarded as a measure that give enablement to know the number of click on a particular ad.

It helps to know how many people make a purchase through ads on the website.

Therefore, conversion rate is correct.

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