Theme: Money creation Plans what Are Money creation? Understanding Money supply Types of Monetary financing What Are money creation

Special Considerations
There may be options available to producers if the cost of production exceeds a product's sale price. The first thing they may consider doing is lowering their production costs. If this isn't feasible, they may need to reconsider their pricing structure and marketing strategy to determine if they can justify a price increase or if they can market the product to a new C. If neither of these options works, producers may have to suspend their operations or shut down permanently. Here's a hypothetical example to show how this works using the price of oil. Let's say oil prices dropped to $45 a barrel. If production costs varied between $20 and $50 per barrel, then a cash negative situation would occur for producers with steep production costs. These companies could choose to stop production until sale prices returned to profitable levels.

Question
1What is Money creation?

2 What are this types Money creation?
3 What are Money supply ?
4 What is relationship between Money supply and Money creation ?
5 how are money supply dettermine ?
Exercise
1 The short-run cost function of a company is given by the equation C=190+53Q. Where C is the total cost and Q is the total quantity of output. Both measured in tens of thousands
A) What is the company’s fixed cost ?
When Q=0, C=190, so fixed cost is equal to 190 or $1900000
B) If the company produced 100 000 units of goods, what is its average variable cost ?
With 100 000 units Q=10 Variable cost is 53Q=53*10=530 or 5300 000
TEST
1 The term "money supply" commonly denotes the total, safe.
a)True b)False
2, M0: The total of all physical currency including coinage..
a)True b)False
3 The authority through which monetary policy is not conducted is the central bank of the nation.
a)True b)False
4, Which of the following statements is true? 
a)All costs are fixed in the long run