If Real Output in an Economy Is 1000 Goods Per

question 187

Multiple Choice

If real output in an economy is 1000 goods per year,the money supply is $300,and each dollar is spent an average of 3 times per year,then according to the quantity equation,the average price of goods is

• A)$0.90.
• B)$1.00.
• C)$1.11.
• D)$1.33.

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Definitions:

Goodwill

An intangible asset that arises when one company acquires another for a price higher than the fair value of its net tangible assets, representing elements like brand, customer base, and reputation.

Acquisition-Date Fair Value

The value of an asset or liability estimated at the date of acquisition based on its current market value.

Intra-Entity Debt Transactions

Financial obligations or loans between entities within the same corporate group, not necessarily evidenced in consolidated financial statements until settled externally.

Amortization Process

The systematic reduction of a loan or the spreading out of capital expenses over a fixed period of time.