Q. Assume Cooper also needs to increase its level of invent theory to support new sales and that invent theory turnover is 4 times. Illustrate what would be total incremental investment in accounts receivable and invent theory to support expected increase in sales?
Q. Assume central bank wants to achieve an inflation rate equal to 1% and current growth rate of real GDP is 2%. If quantity theory of money holds, Illustrate what should Fed set money growth rate equal to? (Hint: Use equation of exchange in growth-rate form.)