Correctly answer the following questions.,,,
The accounting identity of money is PY = M 'v 1. Write down the accounting identity in terms of growth rates. Which variables in the equation are directly controlled by the central bank based on the quantity theory of money? 2. List two changes that can increase or decrease the velocity of money, and explain why. For example, how would the proliferation of credit card usage affect velocity? . If output grows at 3% per period, and money velocity is constant. By how much should the monetary authority increase money supply each period if it wishes to keep constant prices? . Suppose the Federal Reserve has an ination target of 2% per period. How much does the money supply need to change in order to achieve the target? . Suppose the Fed wants to raise the real interth rate to 2% per period, while maintaining a 3% nominal interest rate, at what rate should the Fed change money supply? . Centinue to assume that velocity is constant and rewrite the identity. M = lPY 'U Md = kPY k = i is constant because *0 is constant. M d is the quantity of money demanded. In equilib- rium, the amount of money that people hold is equal to the amount of money demanded, so we can replace M with Md. What does the above equation tell you about the determinants of the demand for money? D00: interest rate directly a'ect the demand for money? 1. The project scope management plan, as a component of the project management plan, includes which of the following? O A. Preparation of a detailed project scope statement O B. Creation of the work breakdown structure (WBS) C. Specifications for formal verification and acceptance of com- pleted project deliverables O D. All of the above 2. You are creating your WBS and find that you keep decomposing tasks into smaller and smaller units. How can you tell when you are done? O A. Keep decomposing tasks until you reach an amount of work that is small enough to reliably estimate required resources and duration. O B. Keep decomposing tasks until you reach an amount of work that can be accomplished in one hour. O C. Keep decomposing work until you reach an amount of work that can be accomplished in your organization's basic work unit. O D. Keep decomposing work until you reach a predetermined num- ber of hierarchy levels to keep the WBS balanced. 3. Which of the following is a valid input to the collect requirements process? O A. Project charter ) B. Requirements traceability matrix O C. Validated deliverables O D. Work performance information
