Business, 25.11.2019 20:31 jediDR

The central bank closely monitors the money supply (i. e., the quantity of money in the economy). when trying to quantify the size of the money supply, the central bank must determine what should "count" as money. that is, it should choose whether to focus on the m1 or m2 definition of money. in this short writing assignment, you will describe and calculate the values of these measures of the money supply. below, you are provided with values of several perfectly or near-perfectly liquid assets (before the transactions described below take place) asset value savings deposits $170 million money market mutual funds $40 million travelers' checks $5 million currency and coins time deposits $25 million $30 million checking deposits $240 million suppose that households, on average, take $45 million out of their savings account balances and deposit those funds into their checking accounts. you will analyze the effect of these transactions on m1 and m2 in this assignment.
"make sure to address the following issues/questions in your response:
1) describe which of the two definitions of money (m1 or m2) is a stricter definition of money and why;
2) calculate the value of m1 before and after the transactions described above;
3) calculate the value of m2 before and after the transactions described above;
4) identify whether m1 has grown, shrunk, or neither; and
5) identify whether m2 has grown, shrunk, or neither."

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 11:40

Select the correct answer. which is a benefit of planning for your future career? a.being less prepared after high school. b.having higher tuition in college. c.earning college credits in high school. d.ruining your chances of having a successful career.

Answers: 2

Answer

Business, 22.06.2019 19:00

Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.

Answers: 2

Answer

Business, 22.06.2019 22:30

Schuepfer inc. bases its selling and administrative expense budget on budgeted unit sales. the sales budget shows 1,800 units are planned to be sold in march. the variable selling and administrative expense is $4.30 per unit. the budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. the remainder of the fixed selling and administrative expense represents current cash flows. the cash disbursements for selling and administrative expenses on the march selling and administrative expense budget should be:

Answers: 1

Answer

Business, 23.06.2019 01:20

Suppose that fizzo and pop hop are the only two firms that sell orange soda. the following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: pop hopadvertise doesn’t advertisefizzo advertise 10, 10 18, 2doesn’t advertise 2, 18 11, 11for example, the upper right cell shows that if fizzo advertises and pop hop doesn't advertise, fizzo will make a profit of $18 million, and pop hop will make a profit of $2 million. assume this is a simultaneous game and that fizzo and pop hop are both profit-maximizing firms.if fizzo decides to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if fizzo decides not to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if pop hop advertises, fizzo makes a higher profit if it chooses (not to advertise, to .if pop hop doesn't advertise, fizzo makes a higher profit if it chooses (not to advertise, to . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.again, suppose that both firms start off not advertising. if the firms decide to collude, what strategies will they end up choosing? fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.

Answers: 2

Answer

You know the right answer?

The central bank closely monitors the money supply (i. e., the quantity of money in the economy). wh...

Questions