Answer:
The answer is C. may release her interest in the stock by filing an amendment.
Explanation:
When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. a. The quality of rental housing units falls. b. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. c. The quantity of available rental housing units falls. d. The future supply of rental housing units increases.
Answer:
a. The quality of rental housing units falls
c. The quantity of available rental housing units falls.
Explanation:
As the landlord cannot receive a desired return for their investment they will stop improving and doing proper maintenance of the property to obtain it.
They will also be less likely to rent and would prefer to sale and move away from the real-state investment business in the region to more profitable region or better business. This will make the ernt go up as there is less offer as well so the policy backfires.
Stoping the market to work property will cause market failures and the outcome won't be the desired
The common long-run outcomes when cities prevent landlords from charging market rents are the quality of rental housing units falls and the quantity of available rental housing units falls. The correct options are a and c.
Landlords may be less motivated or equipped to spend money on preserving or raising the caliber of rental properties when they are unable to collect market rents.
Rent control or limitations on market rents may discourage landlords from supplying rental properties or cause a decline in the number of rental houses available. Landlords have the option to change their properties into other types of real estate or to use them for different purposes.
Thus, the ideal selections are options a and c.
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Suppose the value of your home increases from $100,000 to $125,000. If you continue to live in your home, the increase in its value:
A) adds nothing to GDP.
B) increases GDP by $25,000.
C) increases GDP by $100,000.
D) increases GDP by $125,000.
Answer:
The correct answer is option A.
Explanation:
The value of a house was $100,000.
It increased to $125,00.
It will have no effect on the GDP if the person owning it continues to live in it.
The GDP of an economy measures the value of final goods and services produced in an economy in a year. This increase in the value of a house will not affect GDP as no final good or service is being produced.
The value of second-hand goods is not included in GDP.
If the price of a good increases, ________. 1, the consumer surplus increases 2, the budget constraint shifts to the left 3, the consumer surplus decreases 4, the budget constraint shifts to the right
Answer:
3, the consumer surplus decreases
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
For example if the willingness to pay for a good is $60. If the price of the good rise from $30 to $40. The consumer surplus would fall from $30 to $20.
Budget constraint is the amount of goods and services a consumer can purchase given the consumers income and the price of goods.
Only increase or decrease in income leads to a shift of the budget constraint.
I hope my answer helps you
Final answer:
An increase in the price of a good results in a decrease in consumer surplus and a leftward shift of the budget constraint, which shows a reduced level of utility for consumers.
Explanation:
If the price of a good increases, the economic consequence is that the consumer surplus decreases and the budget constraint shifts to the left, indicating that consumers can afford less of the good or must substitute away from the good due to the increased price. This leftward shift means that the budget line is now tangent to a lower indifference curve on a consumer preference graph, representing a reduced level of utility. The degree of change in the quantity demanded of each good will vary based on personal preferences and the degree of necessity versus luxury attributed to the good.
Adam Company has 100 units costing $300 in beginning inventory. During the year, the company purchases 900 units for a total cost of $2,880. At the end of the year, a physical count reveals that 200 units remain in ending inventory. If the company uses the FIFO method, the cost of ending inventory will be:
Answer:
The value of the ending inventory is $ 640
Explanation:
First we have to make a table showing the inventory movements.
Beginning inventory 100 units $ 300
Purchases 900 units $ 2,880
Ending inventory 200 units
Adam Company uses the FIFO method which means that the units sold shall be valued at the opening inventory plus purchases. The ending inventory shall be priced at the purchase value.
The unit value for purchases is $ 2,880/900 = $ 3.20 per unit.
So the value of the ending inventory shall be
200 units * $ 3.2 per unit = $ 640
Answer:
ending inventory = $620
Explanation:
beginning inventory 100 units $300 $3 per unit
purchases 900 units $2,880 $3.20 per unit
ending inventory 200 units ??? ???
Under FIFO method (first in, first out), the first units purchased (oldest) are the first units to be sold.
Since the ending inventory = 200 units and using the FIFO method:
100 units x $3 per unit = $300100 units x $3.20 per unit = $320ending inventory = $300 + $320 = $620
The price elasticity of demand for Stork ice cream is - 4. Suppose you're told that following a price increase, quantity demanded fell by 10 percent. What was the percentage change in price that brought about this change in quantity demanded?
Answer:
40
Explanation:
10*4
The price elasticity of demand indicates how much the quantity demanded changes when there is a change in price. For Stork ice cream, a 10% decrease in quantity demanded implies a 2.5% increase in price, given its price elasticity of -4.
Explanation:The price elasticity of demand is a measure of how much the quantity demanded of a product changes when there is a change in its price. In this case, Stork ice cream has a price elasticity of demand of -4. This means that for every 1 percent increase in price, the quantity demanded falls by 4 percent. If the quantity demanded fell by 10 percent, this implies that the price of the Stork ice cream must have increased by 2.5 percent.
To find this, we can use the formula for price elasticity of demand: Percentage change in quantity demanded / Percentage change in price = -4. By transposing the equation, we can find that the Percentage change in price = Percentage change in quantity demanded / -4. Hence, -10% / -4 = 2.5%.
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Marginal analysis studies how individuals decide: a. whether to go to college. b. whether to live on the margin of society. c. how much down payment to make when buying stocks. d. whether to do a bit more of an activity versus a bit less of it.
Answer:
Correct option is (d)
Explanation:
Marginal analysis is a decision making tool used by managers to identify if an additional effort on an activity or incurring additional cost would be beneficial or yield more profits.
In other words, individuals decide on the basis of marginal analysis whether to work more or a activity or not based on the outcome. If the outcome is profitable, then the individual would choose to work harder and vice versa.
Geyer Company has the following account balances: Accounts Receivable: $40, Accounts Payable: $45, Cash: $70 and Notes Payable: $65. If the Notes Payable balance is listed as $56 in the trial balance, what impact will this have on the accounts
Answer:
Credit side of the trial balance will be understated by $9
Explanation:
Note Payable has a credit balance of $ 65 by writing it as $56 it will understate the total credit value by $9 ( 65 - 56 ). Trial will be imbalanced. Ultimately the Balance sheet will not balance, it will show $9 more assets than the total equity and liabilities. The note payable is recorded in the liabilities section of the balance sheet which will be a cause of imbalance of balance sheet too.
Amazon, the largest online retailer, has experimented with physical stores and recently bought Whole Foods. Whole Foods has almost 500 stores and gives Amazon facilities for rapid physical expansion. The general insight here is that:__________
a. to survive today, organizations need to be present in both the online and physical markets
b. Amazon recognized a bargain-priced stock in Whole Foods
c. people do not like buying groceries online
Answer:
a. to survive today, organizations need to be present in both the online and physical markets
Explanation:
Nowadays, despite emergence of online stores for buying goods or availing services, majority of the customers still prefer traditional buying i.e bricks and mortar set up.
The shift towards online purchases has been on a rise over the years yet it is not substantial enough for retailers to obviate the need for physical retail stores.
Since, consumers still shop from both, it has become essential in the current scenario for organizations to be present both in physical markets as well as set up online stores.
The insight from Amazon's strategy of acquiring Whole Foods and exploring physical stores signifies the importance for organizations to maintain presence in both online and physical markets to cater to diverse consumer preferences.
Explanation:The general insight from Amazon's acquisition of Whole Foods and their experiment with physical stores is that organizations aiming to thrive in the current market climate need to establish a presence in both the online and physical markets. This integrated approach enables businesses to cater to varied consumer preferences - those inclined towards in-person shopping experiences and those favoring the convenience of online purchases. Physical stores give Amazon facilities for fast geographical extension. The fact that Amazon bought Whole Foods doesn't necessarily indicate that it was bargain-priced stock, or people dislike buying groceries online, rather it shows the strategic intent of Amazon to create a blended online and offline retail presence.
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A(n) _______________ leader is one who is focused on developing a long term vision for the company and who uses a charismatic personality to communicate his or her visionto the employees.
a. transactional
b. transformational
c. rational
d. committed
Answer:
b. transformational
Explanation:
Transformational leadership refers to the kind of leadership wherein a leader uses his appeal or charisma effectively to convey and convince his subordinates with respect to long term vision.
Transformational, as the word suggests refers to those leaders who are capable of transforming the approach of their subordinates owing to their charm and the reputation they have earned for themselves.
Such leaders are good at implementing organizational changes owing to their personality.
Which of the following refers to the process of collecting, analyzing, and interpreting data about customers, competitors, and the business environment in order to improve marketing effectiveness? A. Dashboarding B. Reverse engineering C. Custom research D. Market research E. Syndicated research
Answer:
d. Market research
Explanation:
Market research -
It is one of the important step for the organisation ,
In this process , the information and data is collected , analysed and interpreted with respect to the customers reviews or feedback .
This step helps to enhance the production , sale and marketing of the goods and services the company produces , which in turn increases the profit earned by the company .
Hence , from the given information of the question ,
The correct option is d. Market research .
In order to use evidence discovered during an inventory search, a police department must have a ________ criteria for doing inventory searches, like written general orders of established routines.
Answer:
standardized
Explanation:
standardized criteria refers to a set of procedure that already vetted and approved by a trusted establishment. This type of criteria will be used by experts to measure their work result.
The way polices search for evidence must follow a standardized criteria which created by the police department.
They require the polices to do so to ensure that the polices do not breach any ethical standard during the evidence search and do not overlook important findings for the case.
When a scientific study on the harmful effects of a particular food preservative was published, Ultimo Foods, a popular potato chips producer, stopped using preservatives in its potato chips. This change significantly reduced the shelf life of the chips even though there were no customer complaints about Ultimo Foods' products. This is an example of a(n) _____.
Answer:
proactive strategy
Explanation:
Proactive strategies are continuous interventions aimed at reducing the probability of some disadvantageous actions occuring. It is preventive and typically deals with the preceding circumstances.
The action of Ultimo Foods is an instance of a precautionary measure where changes were implemented to prevent perceived harm despite no customer complaints.
Explanation:The scenario described, where a company like Ultimo Foods changes its product composition in response to a scientific study (regardless of there being no customer complaints), demonstrates an example of a precautionary measure. This is a business strategy action taken in advance to prevent potential adverse effects or to mitigate the impact of potential crises.
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"The sellers listed their property for six months on February 26 for $522,500. They agreed to pay the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made an offer on the property on March 29 for $510,000. The seller countered the offer on April 1 at $517,500, and the buyer accepted the counter offer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement?
Answer:
4) $36,225. Debit the seller.
Explanation:
The broker's commission = 7% of the final selling price = 7% x $517,500 = $36,225. The percentage didn't change, only the selling price changed.
Any expenses paid by the seller must be debited on the settlement statement, expenses paid by the buyer are credited.
The act that requires certain companies to set up confidential systems so that "red flags" can be raised about suspected illegal and unethical business practices is called the:_______
Answer:
Sarbanes–Oxley Act
Explanation:
Sarbanes – Oxley Act -
It refers to the act , which helps to save the investors , by improving the reliability and the accuracy of the corporate disclosures , is referred to as Sarbanes – Oxley Act .
It is also known as Corporate and Auditing Accountability, Responsibility, and Transparency Act , "Public Company Accounting Reform and Investor Protection Act" .
Hence , from the given information of the question ,
The correct option is Sarbanes–Oxley Act .
Trimble Graphic Design receives $1,800 from a client billed in a previous month for services provided. Which of the following general journal entries will Trimble Graphic Design make to record this transaction?
Answer:
Explanation:
The journal entry is presented below:
Cash A/c Dr $1,800
To Accounts receivable A/c $1,800
(Being the cash is received)
Since the cash is received so we debited the cash account and there is a decrease in account receivable so this account should be credited. Both the accounts are recorded at $1,800 each.
If the optimal forecast of the return on a security exceeds the equilibrium return, then _______.A. the market is inefficient. B. an unexploited profit opportunity exists. C. the market is in equilibrium. D. only A and B of the above are true. E. only B and C of the above are true.
Answer:
D. only A and B of the above are true.
A. the market is inefficient. B. an unexploited profit opportunity exists.Explanation:
In simple words, this question is asking why the optimal return or best possible return of an investment is actually higher than the real market return. Generally this can be explained by opportunity costs and profits, or maybe even market inefficiencies caused by external factors (e.g. taxes).
In economics, efficient companies operating in competitive markets will always have 0 economic profit in the long run, that means that the company has maximized its accounting profits and there is no other alternative investment that can provide the same returns.
The same concept applies here, when you maximize your potential returns, it means that there is no other security or investment should yield the same returns. If your returns are actually, it only means that you are missing an opportunity profit (by investing in some other security) or some type of market inefficiency or external factor has decreased the actual return of your investment.
The average German worker worked about 400 fewer hours per year and earned nearly $14,000 less than did the average worker in the United States. Can we conclude anything about the well-being of the average German worker versus the well-being of the average worker in the United States from these data? What other measures would you like to see in evaluating the well-being of workers in these two countries?
Answer:
By itself his information doesn't tell us a lot about the well being of German and American workers because even though German workers earn significantly less than American workers, they also work less hours.
Both Germany and the US are considered developed countries and other factors must be included before determining the standard of living of the population, e.g. crime rates, pollution, income distribution, life expectancy, etc.
Techilex delivers timber directly to furniture manufacturers. The company takes legal possession of the timber it distributes. The company doesn't physically process timber but it facilitates timber's safe delivery to the clients. In this scenario, Techilex is a(n) __________.
Answer:
The correct answer is drop shipper.
Explanation:
Drop shipping can be defined as one of the supply chain management method where the vendor does not stock any product.
In drop shipping when a vendor gets any order from the customer, the vendor forwards it to the third party for order fulfillment and then ships the product directly from the third party to the customer by the name of the vendor.
According to the scenario, techilex does not store any product but only facilitates delivery for the products shows the drop shipping type of business.
Delwazic Inc. is a multinational corporation (MNC) that creates products specialized for a few host countries. It manufactures berets in France, cowboy hats in the United States, bowlers in the United Kingdom, and bush hats in Australia. In this scenario, Delwazic Inc. is most likely a(n) ________.
Answer:
Delwazic Inc. is a multinational corporation (MNC) that creates products specialized for a few host countries. It manufactures berets in France, cowboy hats in the United States, bowlers in the United Kingdom, and bush hats in Australia. In this scenario, Delwazic Inc. is most likely a monopolist
Explanation:
A monopolist is solely responsible for sales of products to many buyers, such market is termed a monopoly market
as a speaker, the best way to utilize the lectern during your speech is to
Answer:
use when your speech has notes.
Explanation:
A lectern is reading desk that is a tall stand with a sliding top to hold a book or notes.
Therefore, the best way to utilize the lectern during speech is to read notes while standing up and to rest ones hands on it when not making gestures. An example of this is seen when a President is giving a speech, he often uses a lectern.
Answer:
If you have an answer choice that says "None of the above," that is correct
Explanation:
Entrepreneurs who start with a goal instead of a plan and look for a chance to achieve it are known as ________. a. reactive planner b. critical-point planner c. comprehensive planner d. opportunistic planner
Answer:
d. Opportunistic planners
Explanation:
Opportunistic planners -
These refers to the people , who tries to take the advantage of the situation , is referred to as an Opportunistic planners .
These people are the smartest of all , which the maximum patience , to wait and target at the perfect time to achieve their goal .
Hence , from the given information of the question,
The correct option is d. Opportunistic planners .
The term for entrepreneurs who start with a goal and then look for opportunities to achieve it, rather than starting with a detailed plan, is opportunistic planner. They focus on maximizing opportunities relevant to their goal.
Explanation:Entrepreneurs who start with a goal instead of a plan and look for a chance to achieve it are known as opportunistic planners. These entrepreneurs set a specific goal and then look for opportunities to attain that goal, rather than setting a specific, detailed plan from the beginning. For example, an opportunistic planner might set a goal to build a successful software company, but instead of creating a detailed plan on how exactly to achieve this, they would look for opportunities in the market, like partnering with other companies, inventing a unique software, or even acquiring other businesses, to reach their goal of a successful software company.
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A company reported monthly revenues of $ 315,000 and expenses of $ 100,000. What is the result of operations for the month? In order to calculate the operations for the month we must compute net income or net loss. Begin by determining the equation to compute net income or loss, then enter the amounts to solve for the operations for the month.
Answer:
The result of the operation of for the month is Net Income of $215,000.
Explanation:
Values Reported as follows
Revenues = $ 315,000
Expenses = $ 100,000
Equation to compute net income or loss:
In case if Total Revenue is higher than the Total Expenses the net result will be as Income and Total Expenses is higher than the Total Revenue the net result will be as Loss.
Net Income / Net Loss = Total Revenue - Total Expenses
Calculations:
Net Income / Net Loss = $315,000 - $100,000
Net Income = $215,000
So the result of the operation of for the month is Net Income of $215,000.
Sri Lanka is one of the major tea producing nations in the world. A substantial portion of the? country's annual tea production gets exported to various? countries, including the United Arab? Emirates, Russia, and other countries in the Middle East. Given the success in these? countries, Sri Lanka decided to foray into the Asian market. Research evidence indicated that people in Myanmar are major consumers of tea and that there is a high demand for tea in that country. This convinced industry experts in Sri Lanka that exporting to Myanmar was a good idea.
The above reasoning is based on the assumption that
A. tea exports to Myanmar will help the Sri Lankan producers to get an idea about how they might perform in other Asian markets.
B. Myanmar does not export tea.
C. Sri Lankan tea producers incur a higher cost of production than the tea producers in Myanmar.
D. people in Myanmar have similar tastes and preferences in tea consumption as the other consumers of Sri Lankan tea.
E. the market for tea in Myanmar is perfectly competitive.
Answer:
Option E is correct.
Explanation:
The product is homogeneous that is all firms would be selling identical products in the market which would held remove preference for local products.
Answer:
its E i took the test
Explanation:
Bessie is at the grocery store and is trying to remember some of the things she needs to buy. She is in the cleaning products aisle looking at the floor cleaning products. She's pretty sure she has another bottle left at home, so she doesn't purchase another. Bessie's perception of her current situation regarding this product reflects her ____.A. current stateB. desired stateC. actual stateD. self-conceptE. self-assessment
Answer:
C. Actual state
Explanation:
The perception consumers form of a product, affects their buying decision.
Desired state refers to in what way a consumer desires to satisfy his needs and wants.
The actual state of perception refers to how actually consumers satisfy their needs and wants.
In the given case, Bessie's actual state refers to an already satisfied need or want. In this case, the need for cleaning bottle has already been satisfied as has been perceived by Bessie at the grocery store.
This refers to the case of actual state of perception.
The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year. Selling price per unit $8.20 Variable manufacturing costs per unit $1.84 Variable selling and administrative expenses per unit $4.45 Fixed manufacturing overhead (in total) $79,000 Fixed selling and administrative expenses (in total) $83,000 Units produced during the year 520,000 Units sold during year 190,000
Answer:
The Question is Incomplete; Full Question is as follows;
Using variable costing, what is the contribution margin for last year?
Contribution Margin = $362,900
Explanation:
Computation of expenditure margin by differential costing;
Sales Minus variable cost
Sales (190,000 *$8.20)= $1,558,000
Variable cost of Manufacturing(190,000 units *$1.84)= $349,600
— variable sales and administrative costs(190,000 units *$4.45)
= $845,500
= contribution margin = $362,900
Keep in mind that; Set or Fixed expenses and overhead costs are not taken into account when trying to calculate the contribution margin.
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.
Activity Cost Activity Base
Procurement $370,000 Number of purchase orders
Scheduling 250,000 Number of production orders
Materials handling 500,000 Number of moves
Product development 730,000 Number of engineering changes
Production 1,500,000 Machine hours
Number of Number of Number of Number of Machine Number of
Purchase Orders Production Orders Moves Engineering Changes Hours Units
Disk drives 4,000 300 1,400 10 2,000 2,000
Tape drives 4,000 150 800 10 8,000 4,000
Wire drives 12,000 800 4,000 25 10,000 2,500
35. Determine the activity rate for procurement per purchase order.
a $43.53
b $18.50
c $15.42
d $37.00
Answer:
b $18.50
Explanation:
We have to divide the Procurement cost pool over the total number of order which is the cost driver of this activity.
Cost pool: 370,000
Disk drives purchase orders: 4,000
Tape drivers purchase orders: 4,000
Wire drivers purchase drives: 12,000
Total purchase order 20,000
Now, we know the variables values so we can calculate the rate:
$370,000 cost pool/ 20,000 purchase order = $ 18.5
The budgeted overhead cost for the year is $1,260,000. the company has estimated that one-third of the budgeted overhead cost is incurred to support the firm's two partners, and two-thirds goes to support the staff accountants. the current audit bid for monoco industries requires $18,000 in direct partner professional labor, $30,000 in direct staff accountant professional labor, $5,000 in direct material. what is the overhead rate based on a single cost driver (rounded to the nearest percentage)?
Answer:
90%
Explanation:
The computation of the overhead rate based on a single cost driver is shown below:
= Total Overheads ÷ Total Compensation
where,
Total overhead = $1,260,000
Total compensation = Compensation to partners + Compensation to staff accountants
= $560,000 + $840,000
= $1,400,000
So, the overhead rate equal to
= $1,260,000 ÷ $1,400,000
= 90%
The overhead rate, when computed using the total estimated professional labor cost as the cost driver, comes out to be 26 percent.
Explanation:The question wants us to calculate the overhead rate based on a single cost driver. Since the overhead costs are distributed between the partners and the staff accountants, we will use the estimated total professional labor cost as the cost driver to allocate the overhead costs. To start, we will add the amount spent on the partners and staff accountants to get the total estimated professional labor cost. This will be $18,000 (direct partners' labor) + $30,000 (direct staff accountants' labor) = $48,000.
Next, calculate the overhead rate by dividing the budgeted overhead cost by the total estimated professional labor cost. So, Overhead Rate = Total Overhead Cost / Total Labor Cost = $1,260,000 / $48,000 = 26.25. Thus, the overhead rate is 26 percent when rounded to the nearest percentage.
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Prior to the 1997 federal tobacco settlement a pack of cigarettes sold for $2.48. The terms of the settlement required a decrease in teenage smoking of 60 percent. If the elasticity of cigarette demand for teenagers is about 1.3 then the price of cigarettes should rise to __________ in order to achieve the target reduction of 60 percent.
Answer:
$3.62
Explanation:
Elasticity of demand = percentage change in quantity demanded/ percentage change in price
1.3 = 60% / percentage change in price
Percentage change in price = 60/1.3
=46.15%
Price has to rise by 46.15% or 0.4615
0.4615 = (x - 2.48) / 2.48
1.14 = x - 2.48
X = 3.62
Price has to rise to $3.62 to achieve a 60% reduction.
I hope my answer helps you
Final answer:
To achieve a 60 percent reduction in teenage smoking with an elasticity of 1.3, cigarette prices should rise by approximately 46.15 percent, from $2.48 to about $3.62.
Explanation:
The question revolves around the concept of price elasticity of demand and how it affects consumption, particularly regarding teens' cigarette use. To achieve a 60 percent reduction in teenage smoking, the requirement can be translated into mathematical terms using the elasticity formula, which is percentage change in quantity demanded divided by percentage change in price. With an elasticity of 1.3, to reduce smoking by 60 percent, the formula implies that price must increase by 60 percent divided by 1.3 (the elasticity), resulting in approximately a 46.15 percent price increase.
Starting with the base price of $2.48, increasing it by 46.15 percent means adding about $1.14 to the original price. Therefore, the new price would be approximately $3.62 after rounding to the nearest cent.
Which of the following statements about sequence flows is not true? a. None of the choices. b. Sequence flows are continuous from the start event through activities and gateways, if any, to an end event in a pool. c. Sequence flows may not cross lane boundaries. d. Tokens move along sequence flows.e. Sequence flows may not cross pool boundaries.
Answer:
OPTION C
Explanation:
A sequence flow refers to the power grid among two system components. Following visitation of a component during process execution, all outgoing sequence flows will be accompanied. But two outgoing sequence flows by default will create two separate, parallel implementation routes.
Following the visitation of an entity during process execution, all outgoing sequence flows are followed. Thus two outgoing sequence flows by default will create two separate, parallel execution paths. That behavior may be altered.
Thus from the above we can conclude that the correct option is C.
Look at Armenia. The money supply growth rate and the average rate of inflation are 120%. If the growth rate in real GDP was 80%, the percent change in velocity would be
Answer:
80%
Explanation:
As per the Quantity Theory of Money,
Inflation rate + growth rate of real GDP = Money supply growth rate + Growth rate of velocity
So, The percentage change in velocity is
= Average rate of inflation + growth rate in real GDP - money supply growth rate
= 120% + 80% - 120%
= 80%
As the Growth rate of velocity equals to the percentage change in velocity