Chorlton, Fenella and O'Reilly are the sole inhabitants of Cosgrove. Their total holdings of $600 betweenthem constitute the only currency in circulation; this doesn't change in any of the questions below.6. On Monday O'Reilly pays Chorlton $30 for some sweets; Chorlton buys shampoo that Fenella manufacturesfor $15; Fenella buys a broom from O'Reilly for $75. What is the velocity of money V on Monday?7. On Tuesday Chorlton buys nothing; Chorlton makes a quiche and sells it to O'Reilly for $35; Fenella buyssnails from O’Reilly. If the velocity of money V is equal to 0.25 on Tuesday, how much did Fenella payO'Reilly for the snails?P8. The Cosgrove Statistical Agency calculates that the overall inflation rate, i.e. 7 =was 10% betweenMonday and Tuesday. What is the implied growth rate of Y,i.e.between Monday and Tuesday?

6. The velocity is given by, V=TransactionMoney Supply=30+15+75600=120600=0.2 7.If the amount was X,…

Chorlton, Fenella and O’Reilly are the sole inhabitants of Cosgrove. Their total holdings of $600 between them constitute the only currency in circulation; this doesn't change in any of the questions below. 6. On Monday O’Reilly pays Chorlton $30 for some sweets; Chorlton buys shampoo that Fenella manufactures for $15; Fenella buys a broom from O'Reilly for $75. What is the velocity of money on Monday? 7. On Tuesday Chorlton buys nothing; Chorlton makes a quiche and sells it to O'Reilly for $35; Fenella buys snails from O’Reilly. If the velocity of money V is equal to 0.25 on Tuesday, how much did Fenella pay O'Reilly for the snails? 8. The Cosgrove Statistical Agency calculates that the overall inflation rate, i.e. 7 = 5, was 10% between Monday and Tuesday. What is the implied growth rate of Y, i.e. g= = ¥, between Monday and Tuesday?

Chorlton, Fenella and O’Reilly are the sole inhabitants of Cosgrove. Their total holdings of $600 between them constitute the only currency in circulation; this doesn't change in any of the questions below. 6. On Monday O’Reilly pays Chorlton $30 for some sweets; Chorlton buys shampoo that Fenella manufactures for $15; Fenella buys a broom from O'Reilly for $75. What is the velocity of money on Monday? 7. On Tuesday Chorlton buys nothing; Chorlton makes a quiche and sells it to O'Reilly for $35; Fenella buys snails from O’Reilly. If the velocity of money V is equal to 0.25 on Tuesday, how much did Fenella pay O'Reilly for the snails? 8. The Cosgrove Statistical Agency calculates that the overall inflation rate, i.e. 7 = 5, was 10% between Monday and Tuesday. What is the implied growth rate of Y, i.e. g= = ¥, between Monday and Tuesday?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose Alice withdraws $10,000 from her savings account to purchase shares in a money market mutual fund. Alice's action will cause _______ in the M1 money supply and _______ in the M2 money supply, everything else held constant. Select one: an increase; no change an increase; a decrease a decrease; no change a decrease; an increase
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