Answer:
The correct answer is a. an increase in the money supply lowers the equilibrium rate of interest.
Explanation:
The preference for liquidity is a recurring expression in the study of economics, especially important in Keynesian theory and which assumes that people consider it better to have their savings in liquid form, that is, as money.
This concept, very recurrent in macroeconomics, assumes the existence of an outstanding trend in human and rational behavior whereby individuals prefer to have their assets in an accessible and liquid way compared to other possibilities. Originally, the definition of liquidity preference was coined by Keynes when explaining the concept of monetary demand and its mode of action.
This theory suggests that there is a direct relationship between interest rates or rates and people's preferences in terms of liquidity, since both keeping money effectively and not doing so carry certain costs for them. In other words, saving money can translate into financial gain.
For Keynes, there were three reasons why the individuals who make up the money demand opt for liquidity and money: transactions, caution and speculation.
Answer:
<em>a. planning</em>
Explanation:
<em>St. Claire heads of the department are involved in </em>planning<em>, there are no evidence for this. </em>
Because planning is something to make a strategy to do some activity with a particular team or group.
<em>They are just setting few goals and motivating there employees and workers and comparing the outcome with original goal that was set. So this is the proof that they were not involved in planning.</em>
You would suggest that Saudi Arabia specializes in widgets and the United States in widgets.
In microeconomic theory, the opportunity fee of a particular interest choice is the lack of fee or gain that might be incurred with the aid of engaging in that hobby, relative to conducting an alternative activity providing a better return in price or gain.
“Possibility price is the cost of the next-quality alternative while a decision is made; it is what's given up,” explains Andrea Caceres-Santamaria, senior economic schooling professional at the St. Louis Fed, in a current page One Economics: money and overlooked possibilities.
Whilst economists talk over the “possibility value” of a useful resource, they mean the price of the subsequent-maximum-valued opportunity use of that aid. If, for example, you spend money and time going to a film, you cannot spend that point at domestic reading an ebook, and you can not spend the cash on something else.
Learn more about opportunity cost here: brainly.com/question/8846809
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Answer:
15.59%
Explanation:
Calculation to determine what would the effective percentage cost of its trade credit be
Effective percentage cost=1+(.08/1-.08)]^(365/10)-1
Effective percentage cost=1.08^36.5-1
Effective percentage cost=15.59%
Therefore the effective percentage cost of its trade credit be 15.59%