Answer:
They would increase the quantity supplied of loans and increase the interest rate
Explanation:
Monetary policy
This is simply refered to as alterations or changes in the interest rate to alter or influence the level of aggregate demand in an economy that is the demand side policy.
The central banks are known to be regulators of commercial banks and bankers to governments. The interest rate is the price of money. They manages interest rates to influence the money supply. They set the base rate of interest and the base rate influences all other interest rates that commercial banks use (i.e. savings rate, mortgage rate, car loan rate
Answer:
D
Explanation:
So, lets go over what inflation and purchasing power mean.
Inflation is the increase in money of something.
Purchasing power is a persons ability of pruchasing something.
Now, heres an example. A 300 dollar apple phone was quickly being purchased, and apple infalted the price to 600 dollars. Since people can only afford to purchase so much, some might not be able to afford this. This means not as many people can purchase it.
Since the price was raised, this measn the inflaction was increased.
Since the amount of people that could afford the apple phone shrunk, the purchasing power decreased.
So basically, to summarize this:
As the infaltion of an item is increased, the purchasing power is decreased, for less people can afford the higher price.
Answer:
<u>D - As the rate of inflation increases, purchasing power decreases.</u>
Hope this helps!
Answer: An unanticipated increase in the real interest rate happens when there is an unanticipated decrease in the money supply.
Explanation:
A real interest rate is an interest rate that takes out the effect that inflation may cause. If there is a decrease in money, interest may rise to make up for the initial loss of the money supply. By increasing the interest rates, banks are able to make more money back at a faster rate due to the higher percentage.
<span>When the value of money increases, it indicates that fewer dollars are circulating in the economy. This creates a deflationary situation. The banks do not "create" money, but through lowering interest rates and other actions, banks can stimulate the release of some of the money being held back. This, in turn, increases demands for goods and services, which allows the producers of those goods and services to increase their prices to help regulate that demand.</span>
The market structures that most benefit from Big Data are the competition Monopolistic, which is a type of imperfect competition such that many producers sell products in a market but the products are not identical (heterogeneous products), and they differ from each other by the brand, the quality or the location. In monopolistic competition, a firm takes the prices of its rivals as data and ignores the impact of its own prices on the prices of other companies; and Oligopoly, a market structure in which there are few relevant competitors. Each of them has a certain capacity to influence the market variables (such as price and equilibrium quantity), on the other hand, the one that benefit the least from Big Data is the monopoly, as it is a market structure where there is a single offer a certain good or service, that is, a single company dominates the entire supply market.
