Question 1
2
/ 2
pts
Menu costs of inflation are costs arising from
Menu costs of inflation are costs arising from
the failure to fully index the tax system for inflation.
Correct!
the need for firms to change prices during times of inflation.
attempts by households and firms to avoid paying an inflation tax on money balances.
high nominal interest rates.
Question 2
2
/ 2
pts
Expansionary shifts of the aggregate demand curve
Expansionary shifts of the aggregate demand curve
Correct!
can originate in either the assets market or the goods market.
cannot originate in either the assets market or the goods market.
can originate in the goods market, but not the assets market.
can originate in the assets market, but not the goods market.
Question 3
2
/ 2
pts
Despite its costs, governments typically resist eliminating inflation because
Despite its costs, governments typically resist eliminating inflation because
the increase in menu costs because of inflation increases the governments' tax revenues.
Correct!
doing so would result in lost output and jobs when the economy is near full employment.
governments lack the knowledge of how to eliminate inflation.
as net lenders, governments benefit from inflation.
Question 4
0
/ 2
pts
According to new Keynesians, which of the following is NOT an important source of price stickiness?
According to new Keynesians, which of the following is NOT an important source of price stickiness?
Long-term nominal wage contracts
You Answered
Imperfect competition among sellers in the goods market
Long-term nominal price contracts
Correct Answer
Government wage and price controls
Question 5
0
/ 2
pts
In the quantity theory of money demand,
In the quantity theory of money demand,
the demand for real balances is determined by the price level.
You Answered
velocity is assumed to vary with the price level.
the price level is assumed to be constant.
Correct Answer
velocity is assumed to be constant.
Question 6
2
/ 2
pts
Which of the following best describes a price taker?
Which of the following best describes a price taker?
Firms taking the aggregate price level as given
Prices being set by long-term contracts
Price strategies found in monopolistically competitive markets
Correct!
A firm taking the market price as given
Question 7
2
/ 2
pts
Milton Friedman and Anna Schwartz found in their study of money and business cycles from the Civil War to 1960 that
Milton Friedman and Anna Schwartz found in their study of money and business cycles from the Civil War to 1960 that
there is no consistent relationship between money and output over the business cycle.
the growth rate of the money supply rises before output declines in every business cycle.
the growth rate of the money supply falls before output declines during some business cycles and rises before output declines during other business cycles.
Correct!
the growth.
Question 12 2 ptsMenu costs of inflation are costs arising.docxteofilapeerless
Question 1
2
/ 2
pts
Menu costs of inflation are costs arising from
Menu costs of inflation are costs arising from
Correct!
Question 2
2
/ 2
pts
Expansionary shifts of the aggregate demand curve
Expansionary shifts of the aggregate demand curve
Correct!
Question 3
2
/ 2
pts
Despite its costs, governments typically resist eliminating inflation because
Despite its costs, governments typically resist eliminating inflation because
Correct!
Question 4
0
/ 2
pts
According to new Keynesians, which of the following is NOT an important source of price stickiness?
According to new Keynesians, which of the following is NOT an important source of price stickiness?
You Answered
Correct Answer
Question 5
0
/ 2
pts
In the quantity theory of money demand,
In the quantity theory of money demand,
You Answered
Correct Answer
Question 6
2
/ 2
pts
Which of the following best describes a price taker?
Which of the following best describes a price taker?
Correct!
Question 7
2
/ 2
pts
Milton Friedman and Anna Schwartz found in their study of money and business cycles from the Civil War to 1960 that
Milton Friedman and Anna Schwartz found in their study of money and business cycles from the Civil War to 1960 that
Question 8
2
/ 2
pts
Demand-pull inflation results from
Demand-pull inflation results from
Correct!
Question 9
0
/ 2
pts
Attempts by policymakers to keep the rate of unemployment below the natural rate of unemployment for a sustained period of time will result in
Attempts by policymakers to keep the rate of unemployment below the natural rate of unemployment for a sustained period of time will result in
Correct Answer
Question 10
0
/ 2
pts
The Federal Reserve pursued an expansionary monetary policy during 1964 in order to
The Federal Reserve pursued an expansionary monetary policy during 1964 in order to
Correct Answer
You Answered
Question 11
2
/ 2
pts
According to the Ricardian equivalence proposition,
According to the Ricardian equivalence proposition,
Correct!
Question 12
2
/ 2
pts
New Keynesian and new classical economists agree that
New Keynesian and new classical economists agree that
Correct!
Question 13
0
/ 2
pts
Long-term inflation is principally
Long-term inflation is principally
You Answered
Correct Answer
Question 14
2
/ 2
pts
Real business cycle analysis differs from both the new classical and the new Keynesian analyses in holding that
Real business cycle analysis differs from both the new classical and the new Keynesian analyses in holding that
Correct!
Question 15
0
/ 2
pts
A decrease in the willingness or ability of banks to lend has a significant impact on the economy because
A decrease in the willingness or ability of banks to lend has a significant impact on the economy because
Correct Answer
Yo.
Question 12 ptsPeoples decision to hold money based on the co.docxteofilapeerless
Question 1
2
pts
People's decision to hold money based on the comparison of the relative returns of money and nonmoney assets is known as
People's decision to hold money based on the comparison of the relative returns of money and nonmoney assets is known as
Flag this Question
Question 2
2
pts
According to Friedman, the opportunity cost of holding money depends on all of the following EXCEPT
According to Friedman, the opportunity cost of holding money depends on all of the following EXCEPT
Flag this Question
Question 3
2
pts
If in the short run prices did not respond at all to changes in aggregate demand, the short-run aggregate supply curve would
If in the short run prices did not respond at all to changes in aggregate demand, the short-run aggregate supply curve would
Flag this Question
Question 4
2
pts
Sustained growth in the money supply doesn't affect real output in the long run but does lead to inflation according to
Sustained growth in the money supply doesn't affect real output in the long run but does lead to inflation according to
Flag this Question
Question 5
2
pts
Which of the following is a likely causative factor in the movement of M1 velocity during the 1980s?
Which of the following is a likely causative factor in the movement of
M1
velocity during the 1980s?
Flag this Question
Question 6
2
pts
Business cycles typically last
Business cycles typically last
Flag this Question
Question 7
2
pts
Cost-push inflation
Cost-push inflation
Flag this Question
Question 8
2
pts
According to the new classical approach to the aggregate supply curve, the aggregate supply curve slopes upward because
According to the new classical approach to the aggregate supply curve, the aggregate supply curve slopes upward because
Flag this Question
Question 9
2
pts
Inflation generates an excess burden whenever
Inflation generates an excess burden whenever
Flag this Question
Question 10
2
pts
Periods of contraction in the business cycle are known as
Periods of contraction in the business cycle are known as
Flag this Question
Question 11
2
pts
Most economists believe that changes in the price level have
Most economists believe that changes in the price level have
Flag this Question
Question 12
2
pts
Which of the following schools of thought among economists believe that activist stabilization policy is ever desirable?
Which of the following schools of thought among economists believe that activist stabilization policy is ever desirable?
Flag this Question
Question 13
2
pts
Stabilization policy refers to attempts to
Stabilization policy refers to attempts to
Flag this Question
Question 14
2
pts
In the new Keynesian approach, an increase in the nominal money supply
In the new Keynesian approach, an increase in the nominal money supply
Flag this Question
Question 15
2
pts
Whom did President Jimmy Carter appoint chair of the Board of Governors of the Fed in order to convince the public about.
Question 12ptsA decrease in the price level will lead to.docxteofilapeerless
Question 1
2
pts
A decrease in the price level will lead to
A decrease in the price level will lead to
Flag this Question
Question 2
2
pts
A monopolistically competitive market differs from a perfectly competitive market in that a monopolistically competitive market has
A monopolistically competitive market differs from a perfectly competitive market in that a monopolistically competitive market has
Flag this Question
Question 3
2
pts
Which of the following would shift the aggregate demand curve to the left?
Which of the following would shift the aggregate demand curve to the left?
Flag this Question
Question 4
2
pts
Which of the following would NOT shift the aggregate demand curve to the left?
Which of the following would NOT shift the aggregate demand curve to the left?
Flag this Question
Question 5
2
pts
In the mid 1990s, monthly inflation in Yugoslavia peaked at
In the mid 1990s, monthly inflation in Yugoslavia peaked at
Flag this Question
Question 6
2
pts
An important difference between Keynes's approach to the demand for money and Friedman's approach is that
An important difference between Keynes's approach to the demand for money and Friedman's approach is that
Flag this Question
Question 7
2
pts
Keynes assumed that the expected return on bonds is determined by
Keynes assumed that the expected return on bonds is determined by
Flag this Question
Question 8
2
pts
Inflation that is higher than expected redistributes wealth from
Inflation that is higher than expected redistributes wealth from
Flag this Question
Question 9
2
pts
According to the real business cycle model, changes in the money supply will affect economic activity
According to the real business cycle model, changes in the money supply will affect economic activity
Flag this Question
Question 10
2
pts
In the new Keynesian view, which of the following expressions correctly states the relationship between the price that an individual firm with sticky prices charges and the aggregate price level?
In the new Keynesian view, which of the following expressions correctly states the relationship between the price that an individual firm with sticky prices charges and the aggregate price level?
Flag this Question
Question 11
2
pts
According to new Keynesians, which of the following is NOT an important source of price stickiness?
According to new Keynesians, which of the following is NOT an important source of price stickiness?
Flag this Question
Question 12
2
pts
Government budget deficits can be inflationary in the long run only if they
Government budget deficits can be inflationary in the long run only if they
Flag this Question
Question 13
2
pts
Economists who back the use of rules by the Fed believe that they would result in
Economists who back the use of rules by the Fed believe that they would result in
Flag this Question
Question 14
2
pts
The reason that the U.S. economy has experienced long-term inflation since World War II is
The reason.
Question 1 1. Using aggregate supply and demand analysis, disc.docxIRESH3
Question 1
1.
Using aggregate supply and demand analysis, discuss how the following will affect the aggregate level of output and the price level in the economy. Use a SRAS curve. You need to determine whether the AD or SRAS curve will shift, in which direction it will shift, and how this will affect aggregate output and the price level.
a. A hurricane that destroys half the supply of goods produced in Florida.
b. An increase in the money supply.
Question 6
1.
If the required reserve ratio is 10% and $1,000 of new bank reserves are created by the Federal Reserve, what is the maximum potential increase in the quantity of money in the economic system (not just the money created by the banking system but the total money supply)? Why might the money supply not increase by the maximum possible amount? Make sure you show your calculations and answer both parts of this question. Use the following equation to answer this question:
Maximum Potential Increase in the Money Supply = (1/r) x Monetary Base, where r is the required reserve ratio.
Question 8
Which of the following is held constant in defining the Law of Demand:
1.
population
2.
technology
3.
price of inputs
4.
price of related goods
2 points
Question 9
Scalping and black marketing happen because of
1.
price floor
2.
price ceiling
3.
minimum wage
4.
abundant supply
2 points
Question 10
Say's Law implies
1.
equilibrium in goods market
2.
full employment
3.
1 only
4.
both 1 and 2
2 points
Question 11
Producer's surplus is
1.
the triangle above the equilibrium price
2.
the big triangle between demand price and supply price
3.
the triangle below the market price
4.
none of the above
2 points
Question 12
Assume inflation rate is 3% and nominal GDP goes up by 3%. Real GDP growth will be
1.
higher than nominal GDP
2.
lower than nominal GDP
3.
same as nominal GDP
4.
none of the above
2 points
Question 13
Assume unemployment rate is reported to be 8.2%. A survey conducted by a reputable institution shows nearly one hundred thousand people quit looking for job. The reported unemployment rate of 8.2% is
1.
accurate
2.
overstated
3.
understated
4.
all of the above depending on how you look at it
2 points
Question 14
Money is used as a unit of account. This means money
1.
cannot store value for use in the future.
2.
is used to measure the exchange value and costs of goods, services, assets, and resources.
3.
has little or no intrinsic value.
4.
is dependent of the quantity of gold held by the Federal Reserve.
2 points
Question 15
Which of the following is true?
1.
In addition to the M1 money supply, the M2 money supply measure includes a number of highly liquid savings deposits.
2.
The M1 money supply is larger than the M2 money supply.
3.
Currency is the only component of the M1 money supply.
4.
Outstanding credit card balances are included in the M2 money supply, but not the M1 figures.
2 points
Question 16
Which of t ...
Question 12 2 ptsMenu costs of inflation are costs arising.docxteofilapeerless
Question 1
2
/ 2
pts
Menu costs of inflation are costs arising from
Menu costs of inflation are costs arising from
Correct!
Question 2
2
/ 2
pts
Expansionary shifts of the aggregate demand curve
Expansionary shifts of the aggregate demand curve
Correct!
Question 3
2
/ 2
pts
Despite its costs, governments typically resist eliminating inflation because
Despite its costs, governments typically resist eliminating inflation because
Correct!
Question 4
0
/ 2
pts
According to new Keynesians, which of the following is NOT an important source of price stickiness?
According to new Keynesians, which of the following is NOT an important source of price stickiness?
You Answered
Correct Answer
Question 5
0
/ 2
pts
In the quantity theory of money demand,
In the quantity theory of money demand,
You Answered
Correct Answer
Question 6
2
/ 2
pts
Which of the following best describes a price taker?
Which of the following best describes a price taker?
Correct!
Question 7
2
/ 2
pts
Milton Friedman and Anna Schwartz found in their study of money and business cycles from the Civil War to 1960 that
Milton Friedman and Anna Schwartz found in their study of money and business cycles from the Civil War to 1960 that
Question 8
2
/ 2
pts
Demand-pull inflation results from
Demand-pull inflation results from
Correct!
Question 9
0
/ 2
pts
Attempts by policymakers to keep the rate of unemployment below the natural rate of unemployment for a sustained period of time will result in
Attempts by policymakers to keep the rate of unemployment below the natural rate of unemployment for a sustained period of time will result in
Correct Answer
Question 10
0
/ 2
pts
The Federal Reserve pursued an expansionary monetary policy during 1964 in order to
The Federal Reserve pursued an expansionary monetary policy during 1964 in order to
Correct Answer
You Answered
Question 11
2
/ 2
pts
According to the Ricardian equivalence proposition,
According to the Ricardian equivalence proposition,
Correct!
Question 12
2
/ 2
pts
New Keynesian and new classical economists agree that
New Keynesian and new classical economists agree that
Correct!
Question 13
0
/ 2
pts
Long-term inflation is principally
Long-term inflation is principally
You Answered
Correct Answer
Question 14
2
/ 2
pts
Real business cycle analysis differs from both the new classical and the new Keynesian analyses in holding that
Real business cycle analysis differs from both the new classical and the new Keynesian analyses in holding that
Correct!
Question 15
0
/ 2
pts
A decrease in the willingness or ability of banks to lend has a significant impact on the economy because
A decrease in the willingness or ability of banks to lend has a significant impact on the economy because
Correct Answer
Yo.
Question 12 ptsPeoples decision to hold money based on the co.docxteofilapeerless
Question 1
2
pts
People's decision to hold money based on the comparison of the relative returns of money and nonmoney assets is known as
People's decision to hold money based on the comparison of the relative returns of money and nonmoney assets is known as
Flag this Question
Question 2
2
pts
According to Friedman, the opportunity cost of holding money depends on all of the following EXCEPT
According to Friedman, the opportunity cost of holding money depends on all of the following EXCEPT
Flag this Question
Question 3
2
pts
If in the short run prices did not respond at all to changes in aggregate demand, the short-run aggregate supply curve would
If in the short run prices did not respond at all to changes in aggregate demand, the short-run aggregate supply curve would
Flag this Question
Question 4
2
pts
Sustained growth in the money supply doesn't affect real output in the long run but does lead to inflation according to
Sustained growth in the money supply doesn't affect real output in the long run but does lead to inflation according to
Flag this Question
Question 5
2
pts
Which of the following is a likely causative factor in the movement of M1 velocity during the 1980s?
Which of the following is a likely causative factor in the movement of
M1
velocity during the 1980s?
Flag this Question
Question 6
2
pts
Business cycles typically last
Business cycles typically last
Flag this Question
Question 7
2
pts
Cost-push inflation
Cost-push inflation
Flag this Question
Question 8
2
pts
According to the new classical approach to the aggregate supply curve, the aggregate supply curve slopes upward because
According to the new classical approach to the aggregate supply curve, the aggregate supply curve slopes upward because
Flag this Question
Question 9
2
pts
Inflation generates an excess burden whenever
Inflation generates an excess burden whenever
Flag this Question
Question 10
2
pts
Periods of contraction in the business cycle are known as
Periods of contraction in the business cycle are known as
Flag this Question
Question 11
2
pts
Most economists believe that changes in the price level have
Most economists believe that changes in the price level have
Flag this Question
Question 12
2
pts
Which of the following schools of thought among economists believe that activist stabilization policy is ever desirable?
Which of the following schools of thought among economists believe that activist stabilization policy is ever desirable?
Flag this Question
Question 13
2
pts
Stabilization policy refers to attempts to
Stabilization policy refers to attempts to
Flag this Question
Question 14
2
pts
In the new Keynesian approach, an increase in the nominal money supply
In the new Keynesian approach, an increase in the nominal money supply
Flag this Question
Question 15
2
pts
Whom did President Jimmy Carter appoint chair of the Board of Governors of the Fed in order to convince the public about.
Question 12ptsA decrease in the price level will lead to.docxteofilapeerless
Question 1
2
pts
A decrease in the price level will lead to
A decrease in the price level will lead to
Flag this Question
Question 2
2
pts
A monopolistically competitive market differs from a perfectly competitive market in that a monopolistically competitive market has
A monopolistically competitive market differs from a perfectly competitive market in that a monopolistically competitive market has
Flag this Question
Question 3
2
pts
Which of the following would shift the aggregate demand curve to the left?
Which of the following would shift the aggregate demand curve to the left?
Flag this Question
Question 4
2
pts
Which of the following would NOT shift the aggregate demand curve to the left?
Which of the following would NOT shift the aggregate demand curve to the left?
Flag this Question
Question 5
2
pts
In the mid 1990s, monthly inflation in Yugoslavia peaked at
In the mid 1990s, monthly inflation in Yugoslavia peaked at
Flag this Question
Question 6
2
pts
An important difference between Keynes's approach to the demand for money and Friedman's approach is that
An important difference between Keynes's approach to the demand for money and Friedman's approach is that
Flag this Question
Question 7
2
pts
Keynes assumed that the expected return on bonds is determined by
Keynes assumed that the expected return on bonds is determined by
Flag this Question
Question 8
2
pts
Inflation that is higher than expected redistributes wealth from
Inflation that is higher than expected redistributes wealth from
Flag this Question
Question 9
2
pts
According to the real business cycle model, changes in the money supply will affect economic activity
According to the real business cycle model, changes in the money supply will affect economic activity
Flag this Question
Question 10
2
pts
In the new Keynesian view, which of the following expressions correctly states the relationship between the price that an individual firm with sticky prices charges and the aggregate price level?
In the new Keynesian view, which of the following expressions correctly states the relationship between the price that an individual firm with sticky prices charges and the aggregate price level?
Flag this Question
Question 11
2
pts
According to new Keynesians, which of the following is NOT an important source of price stickiness?
According to new Keynesians, which of the following is NOT an important source of price stickiness?
Flag this Question
Question 12
2
pts
Government budget deficits can be inflationary in the long run only if they
Government budget deficits can be inflationary in the long run only if they
Flag this Question
Question 13
2
pts
Economists who back the use of rules by the Fed believe that they would result in
Economists who back the use of rules by the Fed believe that they would result in
Flag this Question
Question 14
2
pts
The reason that the U.S. economy has experienced long-term inflation since World War II is
The reason.
Question 1 1. Using aggregate supply and demand analysis, disc.docxIRESH3
Question 1
1.
Using aggregate supply and demand analysis, discuss how the following will affect the aggregate level of output and the price level in the economy. Use a SRAS curve. You need to determine whether the AD or SRAS curve will shift, in which direction it will shift, and how this will affect aggregate output and the price level.
a. A hurricane that destroys half the supply of goods produced in Florida.
b. An increase in the money supply.
Question 6
1.
If the required reserve ratio is 10% and $1,000 of new bank reserves are created by the Federal Reserve, what is the maximum potential increase in the quantity of money in the economic system (not just the money created by the banking system but the total money supply)? Why might the money supply not increase by the maximum possible amount? Make sure you show your calculations and answer both parts of this question. Use the following equation to answer this question:
Maximum Potential Increase in the Money Supply = (1/r) x Monetary Base, where r is the required reserve ratio.
Question 8
Which of the following is held constant in defining the Law of Demand:
1.
population
2.
technology
3.
price of inputs
4.
price of related goods
2 points
Question 9
Scalping and black marketing happen because of
1.
price floor
2.
price ceiling
3.
minimum wage
4.
abundant supply
2 points
Question 10
Say's Law implies
1.
equilibrium in goods market
2.
full employment
3.
1 only
4.
both 1 and 2
2 points
Question 11
Producer's surplus is
1.
the triangle above the equilibrium price
2.
the big triangle between demand price and supply price
3.
the triangle below the market price
4.
none of the above
2 points
Question 12
Assume inflation rate is 3% and nominal GDP goes up by 3%. Real GDP growth will be
1.
higher than nominal GDP
2.
lower than nominal GDP
3.
same as nominal GDP
4.
none of the above
2 points
Question 13
Assume unemployment rate is reported to be 8.2%. A survey conducted by a reputable institution shows nearly one hundred thousand people quit looking for job. The reported unemployment rate of 8.2% is
1.
accurate
2.
overstated
3.
understated
4.
all of the above depending on how you look at it
2 points
Question 14
Money is used as a unit of account. This means money
1.
cannot store value for use in the future.
2.
is used to measure the exchange value and costs of goods, services, assets, and resources.
3.
has little or no intrinsic value.
4.
is dependent of the quantity of gold held by the Federal Reserve.
2 points
Question 15
Which of the following is true?
1.
In addition to the M1 money supply, the M2 money supply measure includes a number of highly liquid savings deposits.
2.
The M1 money supply is larger than the M2 money supply.
3.
Currency is the only component of the M1 money supply.
4.
Outstanding credit card balances are included in the M2 money supply, but not the M1 figures.
2 points
Question 16
Which of t ...
Question 12 ptsThe best explanation of why the aggregate deman.docxteofilapeerless
Question 1
2
pts
The best explanation of why the aggregate demand curve has a negative slope is that
The best explanation of why the aggregate demand curve has a negative slope is that
Flag this Question
Question 2
2
pts
Transactions velocity
Transactions velocity
Flag this Question
Question 3
2
pts
In the new classical view, if the Chairman of the Fed announces a 10% increase in the money supply and then takes actions that cause the money supply to grow by more than 10%, the result will be
In the new classical view, if the Chairman of the Fed announces a 10% increase in the money supply and then takes actions that cause the money supply to grow by more than 10%, the result will be
Flag this Question
Question 4
2
pts
According to the new classical view, when the actual price level is greater than the expected price level
According to the new classical view, when the actual price level is greater than the expected price level
Flag this Question
Question 5
2
pts
Business cycles
Business cycles
Flag this Question
Question 6
2
pts
In the new Keynesian view, the larger the proportion of firms in the economy with sticky prices,
In the new Keynesian view, the larger the proportion of firms in the economy with sticky prices,
Flag this Question
Question 7
2
pts
In the new Keynesian expression for the price level, c represents
In the new Keynesian expression for the price level,
c
represents
Flag this Question
Question 8
2
pts
The book in which Milton Friedman and Anna Schwartz reported on their study of the relation between money and the business cycle is
The book in which Milton Friedman and Anna Schwartz reported on their study of the relation between money and the business cycle is
Flag this Question
Question 9
2
pts
In the new Keynesian approach, an increase in the nominal money supply
In the new Keynesian approach, an increase in the nominal money supply
Flag this Question
Question 10
2
pts
In the new Keynesian approach, an increase in the nominal money supply affects output by
In the new Keynesian approach, an increase in the nominal money supply affects output by
Flag this Question
Question 11
2
pts
During the years from 1964 to 1969, inflation increased in the United States
During the years from 1964 to 1969, inflation increased in the United States
Flag this Question
Question 12
2
pts
The expression for velocity derived from Keynes's liquidity preference theory is
The expression for velocity derived from Keynes's liquidity preference theory is
Flag this Question
Question 13
2
pts
Which of the following expressions is correct?
Which of the following expressions is correct?
Flag this Question
Question 14
2
pts
Holding everything else constant, the increased use of credit cards in recent years probably
Holding everything else constant, the increased use of credit cards in recent years probably
Flag this Question
Question 15
2
pts
The simultaneous equilibrium of the money, n.
Question 1Response 1Development inside and out effects t.docxaudeleypearl
Question 1:
Response 1:
Development inside and out effects the entire country's economy. It impacts the managing body, regardless the clearly irrelevant subtleties in the average person's dependably life. Both a conditions and clear deferred results of how the economy is getting along, swelling has the two its fans and spoilers. Distinctive envisions that particular degrees of swelling are helpful for a prospering economy, yet that progressively critical rates raise concerns. It can degrade the money basically and, at logically lamentable, has been a key part to subsidences.
Swelling, as referenced, is the rate a worth ascensions, and fundamentally how much the dollar is worth at a given moment concerning checking. The idea behind swelling being an impact for good in the economy is that a reasonable enough rate can nudge financial movement without debasing the money so much that it ends up being basically vain (Kohn, 2006).
Swelling can in like manner falter from asset for asset. Subordinate upon the season, the expense of gas could go up independently from with everything considered headway as it routinely does as summer moves close. In reality, there is even a term - focus improvement - for swelling that parts in everything except for sustenance and imperativeness (gas and oil), as these regions have separate factors that add to them. There are a wide degree of sorts of swelling, subordinate upon what remarkable is being viewed comparatively as what the development rate truly is by all accounts. For example, what happens if the swelling rate is well over the Fed's normal goal? At a higher rate, yet still in the single digits, that is known as walking swelling. It is seen as concerning yet sensible (Ball, 2006).
Swelling is generally depicted reliant on its rate and causes. By and large, Inflation happens in an economy when vitality for thing and experiences outmaneuvers the supply of yield. in this manner, clarifications behind Inflation have different sides, the intrigue side and supply side. The widely inclusive activity of hazard premiums in driving enlargement pay over the scope of advancing years is dependable with secured budgetary improvement and inside and out oblige cash related procedure events in the moved economies. The degree for further fitting budgetary enabling seen with money related stars seems to have declined amidst the enough low advance charges and gigantic monetary records of national banks (Bodie, 2016).
In relentless time, the correspondence of perils has wound up being constantly phenomenal, the general point of view has lit up, and money related conditions have engaged on net. With the work superstar proceeding to reinforce, and GDP improvement expected to keep up a vital good ways from back in the consequent quarter, it likely will be fitting soon to change the affiliation supports rate. Likewise, if the economy propels as shown by the SEP concentrate way, the affiliation supports rate will probably app ...
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
Ready for the next recession? Assessing the UK’s macroeconomic frameworkResolutionFoundation
The UK economy is facing its highest risk of recession since 2007, as Brexit uncertainty and global instability loom large. When the next downturn will arrive is impossible to say, but now is a good time to ensure that we are ready to respond. Crucially the world has moved on since we last prepared our framework – the tools we used to fight the last recession won’t necessarily work for the next one.
How severe are the constraints of near zero interest rates on monetary policy? What is the potential for Quantitative Easing to replay its major financial crisis role? And while there is a generally accepted case for a wider role for fiscal policy, are we ready to deploy it as effectively as possible?
The Resolution Foundation is setting up a new Macroeconomic Policy Unit to get to the bottom of these big economic questions and more. To mark its launch, the Foundation hosted an event that brought together leading macroeconomists and policy makers. The launch included the publishing of a comprehensive assessment of the UK’s current macroeconomic policy framework. Speakers included MPC Member Gertjan Vlieghe and Head of Bloomberg Economics Stephanie Flanders.
Speakers:
Gertjan Vlieghe, Member of the Monetary Policy Committee
Stephanie Flanders, Head of Bloomberg Economics
Kate Barker, Former MPC member
Rupert Harrison, Portfolio Manager at Blackrock
James Smith, Research Director at the Resolution Foundation
Torsten Bell, Chief Executive of the Resolution Foundation (Chair)
BBA 2401, Principles of Macroeconomics 1 Learning Obj.docxarnit1
BBA 2401, Principles of Macroeconomics 1
Learning Objectives
Upon completion of this unit, students should be able to:
1. Describe the relationship between the demand and supply of money.
2. Explain how changes in the money supply affect aggregate demand in
the short run.
3. Explain how changes in the money supply affect aggregate demand in
the long run.
4. Evaluate targets for monetary policy.
5. Compare an active policy and a passive policy.
6. Explain the Phillips curve.
Written Lecture
Monetary theory is concerned with the effects of the quantity of money on the
economy's price level and the level of real output. There is considerable debate
among economists concerning what these effects are. One difficulty in
determining the effects is that monetary policy changes and fiscal policy
changes often occur at the same time, so it is difficult to sort out the effects of
one from those of the other. This chapter describes two views of how money
affects the economy: a short-run view and a long-run view.
The Demand and Supply of Money
A person's demand for money is not the same as the person's desire for a
greater income. When economists speak of a demand for money, they are
referring to the desire to hold a particular amount of money, either in checking
accounts or as cash. That is, the demand for money is a demand to hold a
stock of money at a particular time. Since money is used to facilitate exchange
of goods and services and people engage in exchange on a regular basis,
people hold money balances. The demand for money is greater the greater the
number of transactions (as measured by real GDP) and the higher the average
price at which each good is sold, that is, the greater nominal GDP.
Money also competes with other financial assets as a store of wealth.
Compared with other financial assets, money has one major advantage and
one major disadvantage. Money's advantage is its liquidity—it can be directly
exchanged for goods and services. Its disadvantage is that it earns either no
interest or substantially less interest than other financial assets. The
opportunity cost of holding money is the additional interest that could have
been earned by using the money to buy alternative interest-bearing financial
assets. Consequently, the cost of holding money increases with the real
interest rate, and we expect the demand for money to vary inversely with the
real interest rate, other things being constant. That is, the demand curve for
money slopes downward when real interest rates are on the vertical axis.
Reading
Assignments
Chapter 16:
Monetary Theory and
Policy
Chapter 17:
Macro Policy Debate:
Active or Passive?
Supplemental
Reading
Click here to access a
PDF of the Chapter 16
Presentation.
Click here to access a
PDF of the Chapter 17
Presentation.
Learning Activities
(Non-Graded)
See information below.
Key Terms
1. Decision-making lag
2. De ...
key Points Chapter 11· The English economist John Maynard Keynes.docxcroysierkathey
key Points Chapter 11
· The English economist John Maynard Keynes developed a model that provided an explanation for the high and prolonged rate of unemployment of the Great Depression.
· In the Keynesian model, equilibrium occurs when the spending on consumption, investment, government purchases, and net exports is equal to total output. Firms will produce only the quantity of goods and services they believe consumers, investors, governments, and foreigners plan to buy. If this spending level is less than full-employment output, firms will not alter their production levels and the less than full-employment rate of output will persist. Keynes believed this was the situation during the Great Depression.
· According to the Keynesian view, fluctuations in total spending (aggregate demand) are the major source of economic instability. Keynesians believe that market economies have a tendency to fluctuate between economic booms driven by excessive demand and recessions resulting from insufficient demand. The multiplier concept magnifies these fluctuations.
· When an economy is in a recession, Keynesians do not believe that reductions in either resource prices or interest rates will promote recovery. As a result, market economies are likely to experience recessions that are both severe and lengthy.
· The federal budget is the primary tool of fiscal policy. The Keynesian model highlights the use of fiscal policy as a tool with which to maintain demand at a level consistent with full employment and price stability.
· Rather than balancing the budget annually, Keynesians believe that fiscal policy should reflect business cycle conditions. During a recession, fiscal policy should become more expansionary (a larger deficit should be run). During an inflationary boom, fiscal policy should become more restrictive (shift toward a budget surplus).
· Changes in fiscal policy must be timed properly if they are going to exert a stabilizing influence on an economy. The ability of policy-makers to time fiscal policy changes in a countercyclical manner is reduced by
· (1)
the inability of the political process to act rapidly,
· (2)
the time lag between when a policy change is instituted and when it affects the economy, and
· (3)
the inability to forecast accurately the future direction of the economy.
· Automatic stabilizers help promote stability because they are able to add demand stimulus during a recession and restraint during an economic boom without legislative action.
· Although an abrupt increase in saving may exert an adverse impact on the economy in the short run, saving provides the financing for investment that powers long-term growth. Moreover, a healthy economy is dependent on households saving regularly and avoiding excessive debt.
Key Points chapter 12
· The crowding-out model indicates that expansionary fiscal policy will lead to higher real interest rates and less private spending, particularly for investment. In an open economy, the higher in ...
QUESTION The BP Pipeline case is a complex situational case abo.docxteofilapeerless
QUESTION:
The BP Pipeline case is a complex situational case about the actions of individuals and the practices of a large corporation.
At the heart of the dispute over whether or not BP acted with gross negligence and wilful misconduct in the 2010 Deepwater Horizon disaster is the “swiss cheese” model of complex accidents.
Hazardous activities are guarded against by multiple barriers and so long as any failures are scattered through them, the system as a whole will avoid an accident.
Research more into this topic and p
repare a 2-3 page paper that adequately addresses the the ethical and environmental issues in this case. Be sure to s
ummarize the BP Pipeline Case regarding Ethical Behaviors and Decision-Making.
.
Question Properties of life and recognizing living and nonliving .docxteofilapeerless
Question:
Properties of life and recognizing living and nonliving things.
Consider the properties and characteristics of life. Choose two items (one of which is alive or has been alive and one which has never been alive). Compare and contrast their characteristics. What characteristics do they share and how are they different? Be prepared to discuss the importance of the various characteristics of living things and how their combination makes life an emergent part of the universe.
.
More Related Content
Similar to Question 12 2 ptsMenu costs of inflation are costs arisi.docx
Question 12 ptsThe best explanation of why the aggregate deman.docxteofilapeerless
Question 1
2
pts
The best explanation of why the aggregate demand curve has a negative slope is that
The best explanation of why the aggregate demand curve has a negative slope is that
Flag this Question
Question 2
2
pts
Transactions velocity
Transactions velocity
Flag this Question
Question 3
2
pts
In the new classical view, if the Chairman of the Fed announces a 10% increase in the money supply and then takes actions that cause the money supply to grow by more than 10%, the result will be
In the new classical view, if the Chairman of the Fed announces a 10% increase in the money supply and then takes actions that cause the money supply to grow by more than 10%, the result will be
Flag this Question
Question 4
2
pts
According to the new classical view, when the actual price level is greater than the expected price level
According to the new classical view, when the actual price level is greater than the expected price level
Flag this Question
Question 5
2
pts
Business cycles
Business cycles
Flag this Question
Question 6
2
pts
In the new Keynesian view, the larger the proportion of firms in the economy with sticky prices,
In the new Keynesian view, the larger the proportion of firms in the economy with sticky prices,
Flag this Question
Question 7
2
pts
In the new Keynesian expression for the price level, c represents
In the new Keynesian expression for the price level,
c
represents
Flag this Question
Question 8
2
pts
The book in which Milton Friedman and Anna Schwartz reported on their study of the relation between money and the business cycle is
The book in which Milton Friedman and Anna Schwartz reported on their study of the relation between money and the business cycle is
Flag this Question
Question 9
2
pts
In the new Keynesian approach, an increase in the nominal money supply
In the new Keynesian approach, an increase in the nominal money supply
Flag this Question
Question 10
2
pts
In the new Keynesian approach, an increase in the nominal money supply affects output by
In the new Keynesian approach, an increase in the nominal money supply affects output by
Flag this Question
Question 11
2
pts
During the years from 1964 to 1969, inflation increased in the United States
During the years from 1964 to 1969, inflation increased in the United States
Flag this Question
Question 12
2
pts
The expression for velocity derived from Keynes's liquidity preference theory is
The expression for velocity derived from Keynes's liquidity preference theory is
Flag this Question
Question 13
2
pts
Which of the following expressions is correct?
Which of the following expressions is correct?
Flag this Question
Question 14
2
pts
Holding everything else constant, the increased use of credit cards in recent years probably
Holding everything else constant, the increased use of credit cards in recent years probably
Flag this Question
Question 15
2
pts
The simultaneous equilibrium of the money, n.
Question 1Response 1Development inside and out effects t.docxaudeleypearl
Question 1:
Response 1:
Development inside and out effects the entire country's economy. It impacts the managing body, regardless the clearly irrelevant subtleties in the average person's dependably life. Both a conditions and clear deferred results of how the economy is getting along, swelling has the two its fans and spoilers. Distinctive envisions that particular degrees of swelling are helpful for a prospering economy, yet that progressively critical rates raise concerns. It can degrade the money basically and, at logically lamentable, has been a key part to subsidences.
Swelling, as referenced, is the rate a worth ascensions, and fundamentally how much the dollar is worth at a given moment concerning checking. The idea behind swelling being an impact for good in the economy is that a reasonable enough rate can nudge financial movement without debasing the money so much that it ends up being basically vain (Kohn, 2006).
Swelling can in like manner falter from asset for asset. Subordinate upon the season, the expense of gas could go up independently from with everything considered headway as it routinely does as summer moves close. In reality, there is even a term - focus improvement - for swelling that parts in everything except for sustenance and imperativeness (gas and oil), as these regions have separate factors that add to them. There are a wide degree of sorts of swelling, subordinate upon what remarkable is being viewed comparatively as what the development rate truly is by all accounts. For example, what happens if the swelling rate is well over the Fed's normal goal? At a higher rate, yet still in the single digits, that is known as walking swelling. It is seen as concerning yet sensible (Ball, 2006).
Swelling is generally depicted reliant on its rate and causes. By and large, Inflation happens in an economy when vitality for thing and experiences outmaneuvers the supply of yield. in this manner, clarifications behind Inflation have different sides, the intrigue side and supply side. The widely inclusive activity of hazard premiums in driving enlargement pay over the scope of advancing years is dependable with secured budgetary improvement and inside and out oblige cash related procedure events in the moved economies. The degree for further fitting budgetary enabling seen with money related stars seems to have declined amidst the enough low advance charges and gigantic monetary records of national banks (Bodie, 2016).
In relentless time, the correspondence of perils has wound up being constantly phenomenal, the general point of view has lit up, and money related conditions have engaged on net. With the work superstar proceeding to reinforce, and GDP improvement expected to keep up a vital good ways from back in the consequent quarter, it likely will be fitting soon to change the affiliation supports rate. Likewise, if the economy propels as shown by the SEP concentrate way, the affiliation supports rate will probably app ...
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
Ready for the next recession? Assessing the UK’s macroeconomic frameworkResolutionFoundation
The UK economy is facing its highest risk of recession since 2007, as Brexit uncertainty and global instability loom large. When the next downturn will arrive is impossible to say, but now is a good time to ensure that we are ready to respond. Crucially the world has moved on since we last prepared our framework – the tools we used to fight the last recession won’t necessarily work for the next one.
How severe are the constraints of near zero interest rates on monetary policy? What is the potential for Quantitative Easing to replay its major financial crisis role? And while there is a generally accepted case for a wider role for fiscal policy, are we ready to deploy it as effectively as possible?
The Resolution Foundation is setting up a new Macroeconomic Policy Unit to get to the bottom of these big economic questions and more. To mark its launch, the Foundation hosted an event that brought together leading macroeconomists and policy makers. The launch included the publishing of a comprehensive assessment of the UK’s current macroeconomic policy framework. Speakers included MPC Member Gertjan Vlieghe and Head of Bloomberg Economics Stephanie Flanders.
Speakers:
Gertjan Vlieghe, Member of the Monetary Policy Committee
Stephanie Flanders, Head of Bloomberg Economics
Kate Barker, Former MPC member
Rupert Harrison, Portfolio Manager at Blackrock
James Smith, Research Director at the Resolution Foundation
Torsten Bell, Chief Executive of the Resolution Foundation (Chair)
BBA 2401, Principles of Macroeconomics 1 Learning Obj.docxarnit1
BBA 2401, Principles of Macroeconomics 1
Learning Objectives
Upon completion of this unit, students should be able to:
1. Describe the relationship between the demand and supply of money.
2. Explain how changes in the money supply affect aggregate demand in
the short run.
3. Explain how changes in the money supply affect aggregate demand in
the long run.
4. Evaluate targets for monetary policy.
5. Compare an active policy and a passive policy.
6. Explain the Phillips curve.
Written Lecture
Monetary theory is concerned with the effects of the quantity of money on the
economy's price level and the level of real output. There is considerable debate
among economists concerning what these effects are. One difficulty in
determining the effects is that monetary policy changes and fiscal policy
changes often occur at the same time, so it is difficult to sort out the effects of
one from those of the other. This chapter describes two views of how money
affects the economy: a short-run view and a long-run view.
The Demand and Supply of Money
A person's demand for money is not the same as the person's desire for a
greater income. When economists speak of a demand for money, they are
referring to the desire to hold a particular amount of money, either in checking
accounts or as cash. That is, the demand for money is a demand to hold a
stock of money at a particular time. Since money is used to facilitate exchange
of goods and services and people engage in exchange on a regular basis,
people hold money balances. The demand for money is greater the greater the
number of transactions (as measured by real GDP) and the higher the average
price at which each good is sold, that is, the greater nominal GDP.
Money also competes with other financial assets as a store of wealth.
Compared with other financial assets, money has one major advantage and
one major disadvantage. Money's advantage is its liquidity—it can be directly
exchanged for goods and services. Its disadvantage is that it earns either no
interest or substantially less interest than other financial assets. The
opportunity cost of holding money is the additional interest that could have
been earned by using the money to buy alternative interest-bearing financial
assets. Consequently, the cost of holding money increases with the real
interest rate, and we expect the demand for money to vary inversely with the
real interest rate, other things being constant. That is, the demand curve for
money slopes downward when real interest rates are on the vertical axis.
Reading
Assignments
Chapter 16:
Monetary Theory and
Policy
Chapter 17:
Macro Policy Debate:
Active or Passive?
Supplemental
Reading
Click here to access a
PDF of the Chapter 16
Presentation.
Click here to access a
PDF of the Chapter 17
Presentation.
Learning Activities
(Non-Graded)
See information below.
Key Terms
1. Decision-making lag
2. De ...
key Points Chapter 11· The English economist John Maynard Keynes.docxcroysierkathey
key Points Chapter 11
· The English economist John Maynard Keynes developed a model that provided an explanation for the high and prolonged rate of unemployment of the Great Depression.
· In the Keynesian model, equilibrium occurs when the spending on consumption, investment, government purchases, and net exports is equal to total output. Firms will produce only the quantity of goods and services they believe consumers, investors, governments, and foreigners plan to buy. If this spending level is less than full-employment output, firms will not alter their production levels and the less than full-employment rate of output will persist. Keynes believed this was the situation during the Great Depression.
· According to the Keynesian view, fluctuations in total spending (aggregate demand) are the major source of economic instability. Keynesians believe that market economies have a tendency to fluctuate between economic booms driven by excessive demand and recessions resulting from insufficient demand. The multiplier concept magnifies these fluctuations.
· When an economy is in a recession, Keynesians do not believe that reductions in either resource prices or interest rates will promote recovery. As a result, market economies are likely to experience recessions that are both severe and lengthy.
· The federal budget is the primary tool of fiscal policy. The Keynesian model highlights the use of fiscal policy as a tool with which to maintain demand at a level consistent with full employment and price stability.
· Rather than balancing the budget annually, Keynesians believe that fiscal policy should reflect business cycle conditions. During a recession, fiscal policy should become more expansionary (a larger deficit should be run). During an inflationary boom, fiscal policy should become more restrictive (shift toward a budget surplus).
· Changes in fiscal policy must be timed properly if they are going to exert a stabilizing influence on an economy. The ability of policy-makers to time fiscal policy changes in a countercyclical manner is reduced by
· (1)
the inability of the political process to act rapidly,
· (2)
the time lag between when a policy change is instituted and when it affects the economy, and
· (3)
the inability to forecast accurately the future direction of the economy.
· Automatic stabilizers help promote stability because they are able to add demand stimulus during a recession and restraint during an economic boom without legislative action.
· Although an abrupt increase in saving may exert an adverse impact on the economy in the short run, saving provides the financing for investment that powers long-term growth. Moreover, a healthy economy is dependent on households saving regularly and avoiding excessive debt.
Key Points chapter 12
· The crowding-out model indicates that expansionary fiscal policy will lead to higher real interest rates and less private spending, particularly for investment. In an open economy, the higher in ...
QUESTION The BP Pipeline case is a complex situational case abo.docxteofilapeerless
QUESTION:
The BP Pipeline case is a complex situational case about the actions of individuals and the practices of a large corporation.
At the heart of the dispute over whether or not BP acted with gross negligence and wilful misconduct in the 2010 Deepwater Horizon disaster is the “swiss cheese” model of complex accidents.
Hazardous activities are guarded against by multiple barriers and so long as any failures are scattered through them, the system as a whole will avoid an accident.
Research more into this topic and p
repare a 2-3 page paper that adequately addresses the the ethical and environmental issues in this case. Be sure to s
ummarize the BP Pipeline Case regarding Ethical Behaviors and Decision-Making.
.
Question Properties of life and recognizing living and nonliving .docxteofilapeerless
Question:
Properties of life and recognizing living and nonliving things.
Consider the properties and characteristics of life. Choose two items (one of which is alive or has been alive and one which has never been alive). Compare and contrast their characteristics. What characteristics do they share and how are they different? Be prepared to discuss the importance of the various characteristics of living things and how their combination makes life an emergent part of the universe.
.
Question After reading the first 10 chapters and the economic n.docxteofilapeerless
Question: After reading the first 10 chapters and the economic news from the major newspaper such as the Wall Street Journal, New York Times, the Economist and the like, please write a three page paper to explain the three main goal of macroeconomics in the United States and make a diagnosis of the current state of the American economy.
-Economic Report
-
Remember that the report must be at least 3 pages long.
-
You must provide the reference for each of the source used in the paper
-
Please do not use Wikipedia and other open source
.
Question Answer any TEN of the following questions.1. How are.docxteofilapeerless
Question: Answer any TEN of the following questions.
1. How are multiplexers different from switchers?
2. Name the basic types of multiplexers?
3. Name the advanced features that can be incorporate into multiplexers.
4. Describe the principle of time division multiplexing.
5. Describe the significance of camera ID number in case of multiplexing operation.
6. Describe how a quad multiplexer works.
7. What do you understand by picture in a picture in relation to multiplexer.
8. Explain how a multi-picture mosaic display is generated.
9. Why do you need encoder and decoder along with multiplexer?
10. Describe the concept of time lapse recording mode.
11. Compare the performance of duplex multiplexer with that of triplex multiplexer.
12. How is digital recording different from analog recording?
13. Describe how video motion detection can be incorporated in to a multiplexer.
14. What external alarm sensors can be incorporated in to multiplexer?
15. Describe the concept of remote distributed multiplexing.
4 pages
.
Question 6What is stakeholder theory Explain.Your respons.docxteofilapeerless
Question 6
What is stakeholder theory? Explain.
Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Course Textbook
Hartman, L. P., DesJardins, J., & MacDonald, C. (2014).
Business ethics: Decision making for personal integrity & social responsibility
(3rd ed.). New York, NY: McGraw-Hill.
.
Question 6 Explain the significance of gatekeepers. Your respons.docxteofilapeerless
Question 6
Explain the significance of gatekeepers.
Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Course Textbook
Hartman, L. P., DesJardins, J., & MacDonald, C. (2014).
Business ethics: Decision making for personal integrity & social responsibility
(3rd ed.). New York, NY: McGraw-Hill.
.
Question 4The stockholders’ equity section of Tootsie Roll Indus.docxteofilapeerless
Question 4
The stockholders’ equity section of
Tootsie Roll Industries’
balance sheet is shown in the Consolidated Statement of Financial Position.
(Note that Tootsie Roll has two classes of common stock. To answer the following questions, add the two classes of stock together.)
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)
For the year ended December 31,
2011
2010
2009
Net product sales
$528,369
$517,149
$495,592
Rental and royalty revenue
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
Product cost of goods sold
365,225
349,334
319,775
Rental and royalty cost
1,038
1,088
852
Total costs
366,263
350,422
320,627
Product gross margin
163,144
167,815
175,817
Rental and royalty gross margin
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
Selling, marketing and administrative expenses
108,276
106,316
103,755
Impairment charges
—
—
14,000
Earnings from operations
57,966
64,710
60,949
Other income (expense), net
2,946
8,358
2,100
Earnings before income taxes
60,912
73,068
63,049
Provision for income taxes
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
Other comprehensive earnings (loss)
(8,740
)
1,183
2,845
Comprehensive earnings
$35,198
$54,246
$56,002
Retained earnings at beginning of year.
$135,866
$147,687
$144,949
Net earnings
43,938
53,063
53,157
Cash dividends
(18,360
)
(18,078
)
(17,790
)
Stock dividends
(47,175
)
(46,806
)
(32,629
)
Retained earnings at end of year
$114,269
$135,866
$147,687
Earnings per share
$0.76
$0.90
$0.89
Average Common and Class B Common shares outstanding
57,892
58,685
59,425
(The accompanying notes are an integral part of these statements.)
CONSOLIDATED STATEMENTS OF
Financial Position
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)
Assets
December 31,
2011
2010
CURRENT ASSETS:
Cash and cash equivalents
$78,612
$115,976
Investments
10,895
7,996
Accounts receivable trade, less allowances of $1,731 and $1,531
41,895
37,394
Other receivables
3,391
9,961
Inventories:
Finished goods and work-in-process
42,676
35,416
Raw materials and supplies
29,084
21,236
Prepaid expenses
5,070
6,499
Deferred income taxes
578
689
Total current assets
212,201
235,167
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land
21,939
21,696
Buildings
107,567
102,934
Machinery and equipment
322,993
307,178
Construction in progress
2,598
9,243
455,097
440,974
Less—Accumulated depreciation
242,935
225,482
Net property, plant and equipmen.
Question 5. Look how great we are doing,” said Sawyer Mittlestaed.docxteofilapeerless
Question 5.
“Look how great we are doing,” said Sawyer Mittlestaedt, president of Elliott Company. “Our sales have grown from $1.6 million to $2.0 million this year, we about doubled our warehouse space, and we have more cash in the bank than we started with. A few more years of growth like this and we’ll be tops in the industry.”
“Yes, our statements look pretty good,” replied Endia Bush, the company’s vice president for finance. “But I have concerns that we’re doing business with a lot of companies we don’t know much about. But I do agree, we’re certainly selling a lot of merchandise; our inventory is actually down from last year.”
See statements on next page.
Elliott Company
Comparative Balance Sheets
At December 31, 2015 and 2014
2015
2014
Assets
Current assets:
Cash.
$42,000
$ 27,000
15000 incr
Marketable securities
19,000
13,000
Accounts receivable.
710,000
530,000
Inventory
848,000
860,000
Prepaid expenses
10,000
5,000
Total current assets
1,435,000
1,629,000
Long-term investments
60,000
110,000
Loans to subsidiaries
130,000
80,000
Plant and equipment
3,170,000
2,600,000
Less accumulated depreciation
810,000
755,000
Net plant and equipment
2,360,000
1,845,000
Patents
84,000
90,000
Total assets
$4,263,000
$3,560,000
Liabilities and Stockholders’ Equity
Current liabilities
:
Accounts payable
$ 970,000
$ 670,000
Accrued liabilities
65,000
82,000
Total current liabilities
1,035,000
752,000
Long-term Bonds Payable
820,000
600,000
Notes payable
95,000
80,000
Total liabilities
1,950,000
1,432,000
Stockholders’ equity:
Common stock
1,740,000
1,650,000
Retained earnings .
573,000
478,000
Total stockholders’ equity
2,313,000
2,128,000
Total liabilities and stock
$4,263,000
3,560,000
Elliott’s income statement for 2015 follows
Sales
$2,000,000
Cost of goods sold
1,300,000
Gross profit
700,000
Selling and administrative expenses
490,000
Net operating income
210,000
Nonoperating items:
Gain on sale of investments
$60,000
Loss on sale of equipment.
20,000
40,000
Income before taxes
250,000
Income taxes
80,000
Net income
$ 170,000
The following additional information is available about Elliott’s activities during 2015:
Cash dividends declared and paid to the common stockholders totaled $75,000.
Long-term BONDS with a value of $380,000 were repaid during the year.
Equipment was sold during the year for $70,000. The equipment had cost $130,000 and had $40,000 in accumulated depreciation on the date of sale.
Long-term investments were sold during the year for $110,000. These investments had cost $50,000 when purchased several years ago.
5-1. Ms. Bush asks you to prepare a statement of cash flow (indirect method) for 2015.
5-2. What is Elliott’s free cash flow? Interpret your findings.
5-3. Is Elliott Corp. doing as well as its CEO believes? Discuss.
Question 7.
Thompson Co..
Question 5The financial statements of The Hershey Company and .docxteofilapeerless
Question 5
The financial statements of
The Hershey Company
and
Tootsie Roll
are presented below.
THE HERSHEY COMPANY
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31,
2011
2010
2009
In thousands of dollars except per share amounts
Net Sales
$6,080,788
$5,671,009
$5,298,668
Costs and Expenses:
Cost of sales
3,548,896
3,255,801
3,245,531
Selling, marketing and administrative
1,477,750
1,426,477
1,208,672
Business realignment and impairment (credits) charges, net
(886
)
83,433
82,875
Total costs and expenses
5,025,760
4,765,711
4,537,078
Income before Interest and Income Taxes
1,055,028
905,298
761,590
Interest expense, net
92,183
96,434
90,459
Income before Income Taxes
962,845
808,864
671,131
Provision for income taxes
333,883
299,065
235,137
Net Income
$628,962
$509,799
$435,994
Net Income Per Share—Basic—Class B Common Stock
$2.58
$2.08
$1.77
Net Income Per Share—Diluted—Class B Common Stock
$2.56
$2.07
$1.77
Net Income Per Share—Basic—Common Stock
$2.85
$2.29
$1.97
Net Income Per Share—Diluted—Common Stock
$2.74
$2.21
$1.90
Cash Dividends Paid Per Share:
Common Stock
$1.3800
$1.2800
$1.1900
Class B Common Stock
1.2500
1.1600
1.0712
The notes to consolidated financial statements are an integral part of these statements and are included in the Hershey's 2011 Annual Report, available at www.thehersheycompany.com.
THE HERSHEY COMPANY
CONSOLIDATED BALANCE SHEETS
December 31,
2011
2010
In thousands of dollars
ASSETS
Current Assets:
Cash and cash equivalents
$693,686
$884,642
Accounts receivable—trade
399,499
390,061
Inventories
648,953
533,622
Deferred income taxes
136,861
55,760
Prepaid expenses and other
167,559
141,132
Total current assets
2,046,558
2,005,217
Property, Plant and Equipment, Net
1,559,717
1,437,702
Goodwill
516,745
524,134
Other Intangibles
111,913
123,080
Deferred Income Taxes
38,544
21,387
Other Assets
138,722
161,212
Total assets
$4,412,199
$4,272,732
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable
$420,017
$410,655
Accrued liabilities
612,186
593,308
Accrued income taxes
1,899
9,402
Short-term debt
42,080
24,088
Current portion of long-term debt
97,593
261,392
Total current liabilities
1,173,775
1,298,845
Long-term Debt
1,748,500
1,541,825
Other Long-term Liabilities
617,276
494,461
Total liabilities
3,539,551
3,335,131
Commitments and Contingencies
—
—
Stockholders’ Equity:
The Hershey Company Stockholders’ Equity
Preferred Stock, shares issued: none in 2011 and 2010
—
—
Common Stock, shares issued: 299,269,702 in 2011 and 299,195,325 in 2010
299,269
299,195
Class B Common Stock.
Question 4The stockholders’ equity section of Tootsie Roll Industr.docxteofilapeerless
Question 4
The stockholders’ equity section of Tootsie Roll Industries’ balance sheet is shown in the Consolidated Statement of Financial Position.
(Note that Tootsie Roll has two classes of common stock. To answer the following questions, add the two classes of stock together.)
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)
For the year ended December 31,
2011
2010
2009
Net product sales
$528,369
$517,149
$495,592
Rental and royalty revenue
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
Product cost of goods sold
365,225
349,334
319,775
Rental and royalty cost
1,038
1,088
852
Total costs
366,263
350,422
320,627
Product gross margin
163,144
167,815
175,817
Rental and royalty gross margin
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
Selling, marketing and administrative expenses
108,276
106,316
103,755
Impairment charges
—
—
14,000
Earnings from operations
57,966
64,710
60,949
Other income (expense), net
2,946
8,358
2,100
Earnings before income taxes
60,912
73,068
63,049
Provision for income taxes
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
Other comprehensive earnings (loss)
(8,740
)
1,183
2,845
Comprehensive earnings
$35,198
$54,246
$56,002
Retained earnings at beginning of year.
$135,866
$147,687
$144,949
Net earnings
43,938
53,063
53,157
Cash dividends
(18,360
)
(18,078
)
(17,790
)
Stock dividends
(47,175
)
(46,806
)
(32,629
)
Retained earnings at end of year
$114,269
$135,866
$147,687
Earnings per share
$0.76
$0.90
$0.89
Average Common and Class B Common shares outstanding
57,892
58,685
59,425
(The accompanying notes are an integral part of these statements.)
CONSOLIDATED STATEMENTS OF
Financial Position
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)
Assets
December 31,
2011
2010
CURRENT ASSETS:
Cash and cash equivalents
$78,612
$115,976
Investments
10,895
7,996
Accounts receivable trade, less allowances of $1,731 and $1,531
41,895
37,394
Other receivables
3,391
9,961
Inventories:
Finished goods and work-in-process
42,676
35,416
Raw materials and supplies
29,084
21,236
Prepaid expenses
5,070
6,499
Deferred income taxes
578
689
Total current assets
212,201
235,167
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land
21,939
21,696
Buildings
107,567
102,934
Machinery and equipment
322,993
307,178
Construction in progress
2,598
9,243
455,097
440,974
Less—Accumulated depreciation
242,935
225,482
Net property, plant and equipment
.
Question 8The contract interest rate for bondsA.must.docxteofilapeerless
Question
8:
The contract interest rate for bonds:
A.
must equal the effective interest rate.
B.
is greater than the effective interest rate when bonds are issued at a premium.
C.
has no relation to the cash flow associated with a particular bond.
D.
will fluctuate over the life of a bond.
E.
None of these.
Question
9:
Frick Corporation issued $100,000 of 7%, 15-year bonds on June 1, 2014 (dated April 1 2014) at 101 plus accrued interest, which is paid on April 1 and October 1.
The proper entry to record issuance of the bonds includes a debit to Cash for:
a.
$100,000.
b.
$101,000.
c.
$101,167.
d.
$102,167.
e.
None of these.
Question
10:
Which of the following statements about treasury stock is true?
a.
Excess of the sales price over cost should be credited to retained earnings.
b.
Gains are not recorded on treasury stock transactions but losses are.
c.
Losses on treasury stock transactions are recorded in income.
d.
Reacquiring treasury stock causes stockholders equity to decrease.
e.
None of these.
Question
11:
Frick Company has 100,000 shares of common stock outstanding. On April 15, the board declared a $.30 dividend to be paid to stockholders of record on May 4.
The dividend was distributed on May 15.
The proper journal entry for Frick Company on May 15 does not include:
a.
a credit to Dividends Payable for $30,000.
b.
a debit to Dividends for $30,000.
c.
a credit to Cash for $30,000.
d.
Both A and B, above.
e.
None of these.
Acct221
Page 4 of 8
Question
12:
In an effort to concentrate its resources in more profitable areas, Frick Corporation recently sold its family pizza restaurant segment.
The disposal constitutes:
a.
an extraodinary item.
b.
a discontinued operation which should be treated as a prior period adjustment.
c.
a discontinued operation which should be disclosed net-of-tax effects.
d.
a portion of income from continuing operations.
e.
None of these.
Question
13:
Frick Corporation has 100,000, 5%, $100 par preferred shares outstanding.
The stock is callable at 102, but was originally issued at 99.
The current dividend has been fully paid.
Total stockholders' equity is $20,000,000.
The residual common equity is:
a.
$20,000,000
b.
$10,100,000
c.
$10,000,000
d.
$9,800,000
e.
None of these.
Question
14:
Frick Company's balance sheet included cash ($4,000,000), accounts receivable ($16,000,000), inventories ($10,000,000), prepaid expenses ($2,000,000), accounts payable ($9,000,000), and accrued expenses ($7,000,000).
These are the only current items.
a.
The quick ratio is 2:1.
b.
The quick ratio is 1.25:1.
c.
The current ratio is 1.875:1.
d.
Both A and C.
e.
None of these.
Question
15:
Selected information for 2014 is: cost of goods sold, $5,400,000; average inventory, $1,800,000; net sales, $7,200,000; average receivables, $960,000; and net income, $720,000.
Assuming a 360-day year, what was the inventory turnover ratio for 2014?
a.
333
b.
3
c.
7.5
d.
20
e.
QUESTION 3
A.
Retribution
B.
Incapacitation
C.
Determinate Sentencing
D.
Deterrence
E.
Rehabilitation
F.
Restoration
G.
Indeterminate Sentencing
14 points
2 points
.
Question 2A group working at the University of California, Berke.docxteofilapeerless
Question 2
A group working at the University of California, Berkeley has developed “nanothermometers,” little nanoparticles that can be injected into cells to measure the temperature in various places in the cell. So far, it has been used in cells growing in a culture dish.
Indicate what you think the group will discover about the temperature in different parts of the cell. Discuss whether you believe it will be the same or different, and explain why.
.
Question 6
A.
The tendency to view all things from one’s own perspective, even when there is evidence against one’s position.
B.
Thinking for oneself rather than uncritically accepting the views of others.
C.
Striving to create disciplined thinking as well as holding oneself to the same standards that one holds others to.
D.
The failure to hold oneself to the same intellectual standards that one holds others to.
E.
The tendency to passively accept the views of others and agree with mass positions on issues.
F.
The fear of considering ideas that do not match our own.
G.
The art of thinking about one’s thinking with the goal of improving thinking.
H.
The tendency to think that the world is a better place when people learn to think for themselves, when they draw reasonable conclusions, and when they think logically.
I.
Awareness of the limits of human knowledge and a special focus on being aware of situations in which one is likely to be self-deceived due to native egocentrism.
J.
The tendency to give up the search for truth or understanding when difficult circumstances arise.
K.
The ability to push on in the face of intellectual adversity in order to understand more about the truth of an issue or idea.
L.
The willingness to face ideas and positions on issues that directly threaten our own ideas and beliefs.
M.
The tendency of the human mind to think that it knows more than it does, or that is in possession of the TRUTH.
N.
The tendency to feel threatened by logical thinking and scientific explanation, often the result of fear or the pain involved in analyzing one’s beliefs.
O.
The tendency to ignore other people’s ideas, thought, and feelings because their ideas do not address that with which one is interested.
NEED THIS IN ONE HOUR
.
Question 6.6. Mariel hires Andrew as manager of her sporting goo.docxteofilapeerless
Question 6.
6.
Mariel hires Andrew as manager of her sporting goods store. Nothing is said to Andrew about hiring other employees, but the store is understaffed, so Andrew hires two clerks. Andrew has what type of authority to hire the clerks? (Points : 1)
[removed] Actual authority
[removed] Apparent authority
[removed] Ratified authority
[removed] No authority
.
Question 6 Outline the business reasons to limiting monito.docxteofilapeerless
Question 6
Outline the business reasons to limiting monitoring.
Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Course Textbook
Hartman, L. P., DesJardins, J., & MacDonald, C. (2014).
Business ethics: Decision making for personal integrity & social responsibility
(3rd ed.). New York, NY: McGraw-Hill.
.
Question 6 (1 point)The full child tax credit is available to .docxteofilapeerless
Question 6 (1 point)
The full child tax credit is available to unmarried taxpayers whose AGI does not exceed:
$55,000.
$11,000.
$75,000.
$150,000.
$125,000.
Question 7 (1 point)
For tuition expenses paid during the year for a student attending graduate school, an education credit is available that is equal to:
100% of up to $2,500 of such expenses.
20% of up to $2,500 of such expenses.
20% of up to $10,000 of such expenses.
50% of up to $10,000 of such expenses.
$2,000 plus 25% of the next $2,000 of such expenses.
Question 8 (1 point)
The maximum child and dependent care credit that a married couple with three qualifying children can claim is:
Question 8 options:
$2,100.
$1,800.
$3,150.
$1,200.
$2,400.
Question 9 (1 point)
The additional child tax credit is claimed on:
Question 9 options:
Form 2441.
Schedule 8812.
Form 8863.
Schedule EIC.
Form 1116.
Question 10 (1 point)
Which of the following taxpayers cannot file Form 1040EZ?
A taxpayer with more than $99,999 of taxable income
A taxpayer receiving unemployment compensation
A taxpayer with taxable scholarship income
None of the above taxpayers can file Form 1040EZ
All of the above taxpayers can file Form 1040EZ
Question 16 (1 point)
John pays his former wife Rose $3,100 in alimony and $400 in child support each month. Assuming John makes all 12 payments during the year, how much of the $42,000 must Rose include in gross income:
$37,200.
$42,000.
$4,800.
$0.
None of the above.
Question 17 (1 point)
As part of their divorce agreement, Harry transfers to Mary, his former spouse, GM stock with a market value of $30,000. Harry had $20,000 invested in the stock. How does this transfer affect Harry, and what is Mary's basis in the stock?
Harry has no gain or loss, and Mary's basis is $20,000.
Harry has no gain or loss, and Mary's basis is $30,000.
Harry has a gain of $10,000, and Mary's basis is $20,000.
Harry has a gain of $10,000, and Mary's basis is $30,000.
None of the above.
Question 18 (1 point)
Employees are required to report the amount of tips they receive to their employer when their tips for the month exceed:
$0.
$20.
$25.
$100.
None of the above.
Question 19 (1 point)
On January 1, 2014, Ron pays $92,550 for corporate bonds that have a $100,000 face value. The bonds were originally issued 10 years earlier for $94,660. Prior to January 1, 2014, the previous owner had included $3,100 of original issue discount (OID) in gross income. The amount of Ron's market discount on the bonds is:
$2,110.
$7,450.
$5,340
$5,210.
$4,350.
Question 20 (1 point)
In computing the taxable amount of social security benefits, the (first-tier) base amount for a married person who files jointly with her spouse is:
$0.
$16,000.
$25,000.
$32,000.
$50,000.
.
Question 2 of 205.0 PointsPopper’s demarcation criterion of fals.docxteofilapeerless
Question 2 of 20
5.0 Points
Popper’s demarcation criterion of falsifiability runs into two difficulties. One of which is:
[removed]
A. historical Zeitgeists.
[removed]
B. scientific theories actually compete with each other as well as with nature.
[removed]
C. it does not agree with the nomological approach.
[removed]
D. fulfilling all your desires without exception.
Question 3 of 20
5.0 Points
In the Hempel and Oppenheim covering-law model of explanation, explanation is basically the same as:
[removed]
A. understanding.
[removed]
B. control.
[removed]
C. prediction.
[removed]
D. superstition.
Question 4 of 20
5.0 Points
Who was the Archaic Greek Philosopher that in essence told his student, “This is how I see things- how I believe things are. Try to improve upon my teaching.”
[removed]
A. Leahey
[removed]
B. Achilles
[removed]
C. Elgin Marbles
[removed]
D. Thales
Question 5 of 20
5.0 Points
According to Thomas Kuhn, most eras in science are dominated by a single
Weltanschauung
called a(n):
[removed]
A. Gestalt.
[removed]
B. research plan.
[removed]
C. paradigm.
[removed]
D. axiom set.
Question 6 of 20
5.0 Points
Like Wittgenstein, the
Weltanschauung
approach to science views science as being:
[removed]
A. essentially rational.
[removed]
B. engaged in the search for truth.
[removed]
C. based on models of nature.
[removed]
D. a form of life.
Question 7 of 20
5.0 Points
In a Kuhn’s view of science, what provides scientists with a blueprint and foundation for scientific enterprises?
[removed]
A. The covering law
[removed]
B. The falsification test
[removed]
C. Anomalies
[removed]
D. A paradigm
Question 8 of 20
5.0 Points
The thesis that unobserved, theoretically postulated entities actually exist is called:
[removed]
A. instrumentalism.
[removed]
B. realism.
[removed]
C. unificationism.
[removed]
D. positivism.
Question 9 of 20
5.0 Points
The most important Greek moral value was
sophrosyne
, which meant:
[removed]
A. finding your true inner personality by asking family to help you.
[removed]
B. fulfilling all your desires without exception.
[removed]
C. private contemplation of the gods.
[removed]
D. self control, the kind that springs from wisdom.
Question 10 of 20
5.0 Points
Imagine the author of a History of Psychology textbook (known as book X) devotes a single chapter to “The Great Men of Psychology.” In contrast, the author of your textbook has sought to place psychology within larger social and historical patterns. One could argue that your history of psychology text represents an example of __________ while text book (X) represents a more __________ dimension.
[removed]
A. externalism; internal
[removed]
B. internalism; external
[removed]
C. a nomological perspective; semantic
[removed]
D. naturalism; deductive
Question 11 of 20
5.0 Points
The "New History" criticizes the "Old History" for:
[removed]
A. presenting history "from below."
[rem.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Safalta Digital marketing institute in Noida, provide complete applications that encompass a huge range of virtual advertising and marketing additives, which includes search engine optimization, virtual communication advertising, pay-per-click on marketing, content material advertising, internet analytics, and greater. These university courses are designed for students who possess a comprehensive understanding of virtual marketing strategies and attributes.Safalta Digital Marketing Institute in Noida is a first choice for young individuals or students who are looking to start their careers in the field of digital advertising. The institute gives specialized courses designed and certification.
for beginners, providing thorough training in areas such as SEO, digital communication marketing, and PPC training in Noida. After finishing the program, students receive the certifications recognised by top different universitie, setting a strong foundation for a successful career in digital marketing.
Question 12 2 ptsMenu costs of inflation are costs arisi.docx
1. Question 1
2
/ 2
pts
Menu costs of inflation are costs arising from
Menu costs of inflation are costs arising from
the failure to fully index the tax system for inflation.
Correct!
the need for firms to change prices during times of inflation.
attempts by households and firms to avoid paying an inflation
tax on money balances.
high nominal interest rates.
Question 2
2
/ 2
pts
Expansionary shifts of the aggregate demand curve
2. Expansionary shifts of the aggregate demand curve
Correct!
can originate in either the assets market or the goods market.
cannot originate in either the assets market or the goods market.
can originate in the goods market, but not the assets market.
can originate in the assets market, but not the goods market.
Question 3
2
/ 2
pts
Despite its costs, governments typically resist eliminating
inflation because
Despite its costs, governments typically resist eliminating
inflation because
the increase in menu costs because of inflation increases the
governments' tax revenues.
Correct!
3. doing so would result in lost output and jobs when the economy
is near full employment.
governments lack the knowledge of how to eliminate inflation.
as net lenders, governments benefit from inflation.
Question 4
0
/ 2
pts
According to new Keynesians, which of the following is NOT
an important source of price stickiness?
According to new Keynesians, which of the following is NOT
an important source of price stickiness?
Long-term nominal wage contracts
You Answered
Imperfect competition among sellers in the goods market
Long-term nominal price contracts
4. Correct Answer
Government wage and price controls
Question 5
0
/ 2
pts
In the quantity theory of money demand,
In the quantity theory of money demand,
the demand for real balances is determined by the price level.
You Answered
velocity is assumed to vary with the price level.
the price level is assumed to be constant.
Correct Answer
velocity is assumed to be constant.
5. Question 6
2
/ 2
pts
Which of the following best describes a price taker?
Which of the following best describes a price taker?
Firms taking the aggregate price level as given
Prices being set by long-term contracts
Price strategies found in monopolistically competitive markets
Correct!
A firm taking the market price as given
Question 7
2
/ 2
pts
Milton Friedman and Anna Schwartz found in their study of
money and business cycles from the Civil War to 1960 that
6. Milton Friedman and Anna Schwartz found in their study of
money and business cycles from the Civil War to 1960 that
there is no consistent relationship between money and output
over the business cycle.
the growth rate of the money supply rises before output declines
in every business cycle.
the growth rate of the money supply falls before output declines
during some business cycles and rises before output declines
during other business cycles.
Correct!
the growth rate of the money supply falls before output declines
in every business cycle.
Question 8
2
/ 2
pts
Demand-pull inflation results from
Demand-pull inflation results from
Correct!
policymakers' attempts to increase aggregate demand for current
output above the full-employment level.
7. attempts by financial markets to deal with bracket creep.
attempts by the public to receive higher after-tax returns on
their savings.
workers' pressure for higher wages.
Question 9
0
/ 2
pts
Attempts by policymakers to keep the rate of unemployment
below the natural rate of unemployment for a sustained period
of time will result in
Attempts by policymakers to keep the rate of unemployment
below the natural rate of unemployment for a sustained period
of time will result in
a recession.
Correct Answer
demand-pull inflation.
8. a shift of the
LRAS
curve to the left.
You Answered
permanently higher levels of output.
Question 10
0
/ 2
pts
The Federal Reserve pursued an expansionary monetary policy
during 1964 in order to
The Federal Reserve pursued an expansionary monetary policy
during 1964 in order to
counteract the effects of a deep cut in federal income taxes.
Correct Answer
keep interest rates from rising.
You Answered
pull the United States out of a deep recession.
9. bring down the inflation rate.
Question 11
2
/ 2
pts
According to the Ricardian equivalence proposition,
According to the Ricardian equivalence proposition,
a decline in the demand for money results in an equivalent
increase in the demand for nonmoney assets.
saving equals investment only at full employment.
Correct!
the increase in current income from a tax cut is offset by higher
taxes in the future to pay off the debt.
government spending is the equivalent of investment spending.
10. Question 12
2
/ 2
pts
New Keynesian and new classical economists agree that
New Keynesian and new classical economists agree that
production beyond the full-employment level of output is
impossible, even in the short run.
the
LRAS
curve slopes up.
in the long run the inflation rate must be zero.
Correct!
policymakers cannot permanently maintain the unemployment
rate below the natural rate.
Question 13
0
/ 2
11. pts
Long-term inflation is principally
Long-term inflation is principally
You Answered
the result of chronic federal budget deficits.
Correct Answer
a monetary phenomenon.
the result of the slowdown in the growth rate of aggregate
supply since 1973.
caused by excess wage demands by unionized workers.
Question 14
2
/ 2
pts
Real business cycle analysis differs from both the new classical
and the new Keynesian analyses in holding that
Real business cycle analysis differs from both the new classical
and the new Keynesian analyses in holding that
changes in aggregate demand can affect output in the long run.
12. money is neutral in the long run, but not in the short run.
Correct!
the aggregate supply curve is vertical even in the short run.
prices are sticky in the short run.
Question 15
0
/ 2
pts
A decrease in the willingness or ability of banks to lend has a
significant impact on the economy because
A decrease in the willingness or ability of banks to lend has a
significant impact on the economy because
Correct Answer
some borrowers from banks are unable to borrow from
nonmoney markets.
You Answered
it causes the short-run aggregate supply curve to shift to the
13. left.
bank profits decline and employment in the banking sector
contracts.
it causes the short-run aggregate supply curve to shift to the
right.
Question 16
0
/ 2
pts
Which of the following central banks continues to emphasize
the growth of the money supply in its conduct of monetary
policy?
Which of the following central banks continues to emphasize
the growth of the money supply in its conduct of monetary
policy?
You Answered
The Fed
Correct Answer
ECB
14. Neither the Fed nor the ECB
Both the Fed and ECB
Question 17
2
/ 2
pts
An increase in oil prices will shift the short-run aggregate
supply curve
An increase in oil prices will shift the short-run aggregate
supply curve
down and to the right, causing the level of current output to fall.
up and to the left, causing the level of current output to rise.
Correct!
up and to the left, causing the level of current output to fall.
down and to the right, causing the level of current output to
15. rise.
Question 18
0
/ 2
pts
Which of the following will NOT shift the short-run aggregate
supply function?
Which of the following will NOT shift the short-run aggregate
supply function?
You Answered
Changes in the expected price level
Correct Answer
Changes in the price level
Changes in labor costs
Changes in the costs of nonlabor inputs
16. Question 19
2
/ 2
pts
The liquidity preference theory emphasizes
The liquidity preference theory emphasizes
the effect of price level changes on the demand for real
balances.
Correct!
the sensitivity of money demand to changes in interest rates.
the transactions motive for holding money.
the precautionary motive for holding money.
Question 20
0
/ 2
pts
Which of the following is a likely causative factor in the
movement of M1 velocity during the 1980s?
17. Which of the following is a likely causative factor in the
movement of
M1
velocity during the 1980s?
Correct Answer
Movements in interest rates
You Answered
Exchange rate fluctuations
Changes in marginal tax rates
Political instability in Eastern Europe
Question 21
2
/ 2
pts
According to Keynes, if the interest rate on bond falls, but
aggregate income doesn't change,
According to Keynes, if the interest rate on bond falls, but
aggregate income doesn't change,
the price level will decrease.
18. Correct!
velocity will decrease.
velocity will increase.
the demand for money will decrease.
Question 22
0
/ 2
pts
The existence of cost of living adjustments in many wage
contracts
The existence of cost of living adjustments in many wage
contracts
is being phased out under recent federal legislation.
You Answered
assures that these wages fully adjust to aggregate nominal
disturbances.
19. results in these wages being completely rigid.
Correct Answer
does not result in these wages fully adjusting to aggregate
nominal disturbances.
Question 23
0
/ 2
pts
According to the new Keynesian view, upturns and downturns in
economic activity
According to the new Keynesian view, upturns and downturns in
economic activity
You Answered
are always the result of unexpected changes in the money
supply.
cannot be offset by stabilization policy.
Correct Answer
may represent times when the economy is not at its long-run
equilibrium.
20. are unrelated to movements in aggregate demand.
Question 24
2
/ 2
pts
A disinflation policy that lacks credibility
A disinflation policy that lacks credibility
Correct!
will increase the lost output and jobs that result from the policy.
will have no effect on inflation.
will work only if the economy is experiencing a hyperinflation.
results in a leftward shift of the
AD
curve.
21. Question 25
0
/ 2
pts
If during a particular year, the money supply grows 7%, output
grows 2%, and velocity falls 2%, the inflation rate will be
If during a particular year, the money supply grows 7%, output
grows 2%, and velocity falls 2%, the inflation rate will be
Correct Answer
3%.
11%.
7%.
You Answered
9%.
Question 26
2
/ 2
pts
22. Which events made the inflation that began in the late 1960s
worse?
Which events made the inflation that began in the late 1960s
worse?
Correct!
The oil supply shocks of the mid-1970s
The large increases in the exchange value of the dollar in the
early 1970s
The large tax cuts of the early 1970s
The large reductions in the government spending in the late
1970s
Question 27
0
/ 2
pts
The tendency of individuals to hold money to pay for
unexpected transactions is known as
The tendency of individuals to hold money to pay for
unexpected transactions is known as
23. Keynesian motive.
Correct Answer
precautionary motive.
You Answered
speculative motive.
conditional motive.
Question 28
0
/ 2
pts
Which of the following statements is correct?
Which of the following statements is correct?
You Answered
Prices have fallen in the majority of years since 1939.
Correct Answer
Throughout U.S. history prices have fallen in more years than
they have risen.
24. Prices fell every year in the 1980s.
Prices have risen every year in the United States since 1800.
Question 29
2
/ 2
pts
Monetary neutrality refers to the fact that changes in the money
supply
Monetary neutrality refers to the fact that changes in the money
supply
affect only output in the long run.
Correct!
have no effect on output in the long run.
have a greater effect on prices in the short run than in the long
run.
25. affect output more in the long run than in the short run.
Question 30
0
/ 2
pts
The typical firm will find that its payoff to reducing price
increases after the announcement of a disinflation policy
The typical firm will find that its payoff to reducing price
increases after the announcement of a disinflation policy
Correct Answer
increases if it believes that the policy will actually be carried
out.
decreases if it believes that the policy will actually be carried
out.
is independent of whether the policy is actually carried out.
You Answered
depends on movements in the
LRAS
curve.
26. Question 31
0
/ 2
pts
Suppose the Fed sets an inflation target of 2% a year. If
economic growth averages 3% per year and velocity grows by
1% per year, by how much should it increase the money supply
each year?
Suppose the Fed sets an inflation target of 2% a year. If
economic growth averages 3% per year and velocity grows by
1% per year, by how much should it increase the money supply
each year?
5%
6%
Correct Answer
4%
You Answered
2%
27. Question 32
2
/ 2
pts
If in the short run prices did not respond at all to changes in
aggregate demand, the short-run aggregate supply curve would
If in the short run prices did not respond at all to changes in
aggregate demand, the short-run aggregate supply curve would
slope down.
Correct!
be horizontal.
be vertical.
slope up.
Question 33
0
/ 2
pts
28. Keynes assumed that the return on money was
Keynes assumed that the return on money was
Correct Answer
zero.
the nominal interest rate minus the expected inflation rate.
the same as the return on bonds.
You Answered
the same as the return on bonds, adjusted for capital gains.
Question 34
0
/ 2
pts
If credit card companies imposed a per purchase charge for
using their cards,
If credit card companies imposed a per purchase charge for
using their cards,
money balances would fall, and the velocity of money would
rise.
29. Correct Answer
money balances would rise, and the velocity of money would
fall.
both money balances and the velocity of money would fall.
You Answered
both money balances and the velocity of money would rise.
Question 35
0
/ 2
pts
According to New Keynesians, why does an expected change in
the money supply affect output in the short run?
According to New Keynesians, why does an expected change in
the money supply affect output in the short run?
Correct Answer
Many prices are set by long-term contracts and thus cannot
respond quickly to increases in the money supply.
Prices are flexible in the short run.
30. You Answered
People expect central banks to increase the money supply in
response to increases in output.
Firms have imperfect information.
Question 36
0
/ 2
pts
According to Baumol and Tobin, the transactions demand for
money is
According to Baumol and Tobin, the transactions demand for
money is
positively related to market interest rates, but the velocity of
money is negatively related to market interest rates.
Correct Answer
negatively related to market interest rates, but the velocity of
money is positively related to market interest rates.
31. You Answered
positively related to market interest rates, as is the velocity of
money.
negatively related to market interest rates, as is the velocity of
money.
Question 37
2
/ 2
pts
The book in which Milton Friedman and Anna Schwartz
reported on their study of the relation between money and the
business cycle is
The book in which Milton Friedman and Anna Schwartz
reported on their study of the relation between money and the
business cycle is
Correct!
A Monetary History of the United States.
Money and the Cycle.
The General Theory of Employment, Interest, and Money.
32. Money through the Ages.
Question 38
0
/ 2
pts
Which of the following is true of the new classical view of
stabilization policy?
Which of the following is true of the new classical view of
stabilization policy?
You Answered
It is necessary during recessions but not during booms.
It has been very successful in the period since the Great
Depression.
Correct Answer
It is unnecessary because households and firms make use of all
available information in forming expectations of the price level.
It is necessary, but it should not be overused.
33. Question 39
0
/ 2
pts
An important distinction between Friedman's and Keynes' view
of money demand was that
An important distinction between Friedman's and Keynes' view
of money demand was that
Correct Answer
Friedman thought that interest rates had a smaller effect than
Keynes.
Keynes emphasized the effect of expected average lifetime
income.
Friedman thought that interest rates had a larger effect than
Keynes.
You Answered
Friedman assumed the return on money was zero.
34. Question 40
0
/ 2
pts
Which of the following schools of thought among economists
believe that activist stabilization policy is ever desirable?
Which of the following schools of thought among economists
believe that activist stabilization policy is ever desirable?
Only new Keynesian and new classical
You Answered
Only new Keynesian and real business cycle
New Keynesian, new classical, and real business cycle
Correct Answer
Only new Keynesian
Question 41
0
/ 2
pts
During the late 1970s, households, businesses, and
35. policymakers shifted to the opinion that
During the late 1970s, households, businesses, and
policymakers shifted to the opinion that
You Answered
higher inflation was acceptable provided it resulted in higher
employment.
a reduction in inflation should take place provided it did not
result in disinflation.
higher inflation was acceptable provided it resulted in higher
output.
Correct Answer
reducing inflation was necessary even if it resulted in lower
levels of employment and output.
Question 42
2
/ 2
pts
If oil prices fall at the same time that the federal government
increases its spending, in the short run
36. If oil prices fall at the same time that the federal government
increases its spending, in the short run
aggregate output and the price level will both fall.
Correct!
aggregate output will increase, but the price level may either
increase or decrease.
aggregate output and the price level will both increase.
aggregate output will increase, but the price level will fall.
Question 43
2
/ 2
pts
Which of the following is true of the new Keynesian view of
stabilization policy?
Which of the following is true of the new Keynesian view of
stabilization policy?
It is unnecessary because output fluctuations reflect
productivity disturbances.
37. It is unnecessary because output fluctuations are largely the
result of policy mistakes by the Fed.
It is necessary during recessions but not during booms.
Correct!
It is necessary because shifts in aggregate demand are the main
source of movements in current output.
Question 44
0
/ 2
pts
When economists state that money is neutral in the long run,
they mean that in the long run,
When economists state that money is neutral in the long run,
they mean that in the long run,
You Answered
the price level is independent of the nominal money supply.
Correct Answer
the level of output is independent of the nominal money supply.
38. fluctuations in the money supply are equally likely to lead to
recessions as to expansions.
changes in the money supply have the same impact on the rich
as they do on the poor.
Question 45
0
/ 2
pts
Money's convenience yield is
Money's convenience yield is
Correct Answer
the amount of interest sacrificed in exchange for money's
safety, liquidity, and low information costs.
You Answered
the nominal interest rate paid on money balances plus the
expected inflation rate.
the nominal interest rate paid on money balances minus the
expected inflation rate.
39. the interest rate on T-bills minus the interest rate on money.
Question 46
0
/ 2
pts
Most economists believe that the aggregate supply curve is
Most economists believe that the aggregate supply curve is
upward-sloping in the long run, but vertical in the short run.
Correct Answer
upward-sloping in the short run, but vertical in the long run.
You Answered
vertical in both the short run and in the long run.
upward-sloping in both the short run and in the long run.
40. Question 47
0
/ 2
pts
The inclusion in M1 of interest-bearing substitutes for
conventional checkable deposits in the early 1980s
The inclusion in
M1
of interest-bearing substitutes for conventional checkable
deposits in the early 1980s
You Answered
increased the demand for
M1
at each level of nominal GDP, thereby increasing velocity.
decreased the demand for
M1
at each level of nominal GDP, thereby decreasing velocity.
decreased the demand for
M1
at each level of nominal GDP, thereby increasing velocity.
Correct Answer
increased the demand for
M1
at each level of nominal GDP, thereby decreasing velocity.
41. Question 48
0
/ 2
pts
Milton Friedman and Anna Schwartz conclude that
Milton Friedman and Anna Schwartz conclude that
Correct Answer
changes in money growth cause output fluctuations.
there is no causal link between the money supply and output.
You Answered
output fluctuations cause changes in money growth.
there is no evidence for changes in the money supply that are
not influenced by changes in output or by third factors that
influenced both money and output.
Question 49
0
/ 2
pts
The argument that changes in output cause changes in the
42. money supply is known as
The argument that changes in output cause changes in the
money supply is known as
the money multiplier effect.
You Answered
direct causation.
the liquidity effect.
Correct Answer
reverse causation.
Question 50
0
/ 2
pts
Which of the following is the correct expression for short-run
aggregate supply in the new classical view?
Which of the following is the correct expression for short-run
aggregate supply in the new classical view?
Y
= Y + a
43. (
P -
P
e
)
You Answered
Y = Y
+ a
(
P +
P
e
)
Correct Answer
Y = Y
+ a
(
P -
P
e
)
Y
= Y + a
(
P +
P
e
)