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Anastaziya [24]
2 years ago
14

the economy is currently in long-run equilibrium. if the central bank increases the money supply, in the long run the price leve

l will
Business
1 answer:
Scorpion4ik [409]2 years ago
4 0

The economy is currently in long-run equilibrium. If the central bank increases the money supply, in the long run the price level will raises.

<h3>What is long-run equilibrium?</h3>

The term “long-run equilibrium” is used in economics to represent a theoretical idea in which all markets are in equilibrium and all prices and quantities have fully adjusted to achieve equilibrium.

The long-run differs from the short-run, which has some limitations and markets that are not entirely balanced.

Currently, the economy is in long-run balance. If the central bank expands the money supply, the price level will rise in the long run.

Therefore, in the long run, the price level will raise as the central bank increases the money supply.

To learn more about the money supply, refer to:

brainly.com/question/14041873

#SPJ4

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Drag the tiles to the correct boxes to complete the pairs. For each scenario match it to the correct factor describing the purpo
lord [1]

The purpose for holding money in economic in classified into:

  • transactional motive
  • precautionary motive
  • speculative motive

<h3>The Drop-downs includes:</h3>
  • When price levels rise, people hold onto cash. - Speculative motive

  • When interest rates are low, people forgo interest income - Speculative motive

  • When aggregate income is high, people hold cash to buy goods that are plentiful and cheap - Transactional motive.

  • When interest rates are low, people speculate that they will soon increase - Speculative motive

  • Andy decided to hold his money in cash, as he did not earn sufficient money as income from interest. - Speculative motive

  • Ben is a consumer and decides not to purchase luxury items because they are too expensive - Speculative motive

  • Chad thinks it to be a good opportunity to buy the products from the market as the supply has increased. - Transactional motive

  • Daphne is holding onto her money as she feels that the interest rate will go up soon - Speculative motive

Read more about holding motives

<em>brainly.com/question/16287958</em>

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7 0
2 years ago
Which of the following is an advantage of newspaper advertising?
Furkat [3]

Answer: Option A  

                             

Explanation: One of the major advantage of using newspaper is that an individual can reach to the prospects on such demo-graphical areas where other mediums might not work effectively and efficiently.

If an entity wants to advertise its product to smaller audiences at living in difficult places then it should go for newspaper. Also newspaper is the most common medium as one might not watch tv or listen radio daily but most of the individuals read newspaper everyday at morning.

Hence the correct option is A .

4 0
3 years ago
The implication of the expectations theory that expected returns for a holding period must be the same for bonds of different ma
lutik1710 [3]

Answer:

i think the answer is intruments with different matuirties are perfect subtitute. i'm not sure but i think this is the answer.

Explanation:

5 0
3 years ago
The town of Millbridge has just agreed to pay a pension for the town clerk. The pension will be $40,000 per year for the next 20
Mekhanik [1.2K]

The amount that must be put aside now is $458,796.85.

<h3>How much should be put aside now?</h3>

The first step is to determine the future value of the annuity:

Future value = yearly payment x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

Where:

  • r = interest rate = 6%
  • n = number of years = 20

$40,000 x [(1.06^20) - 1] / 0.06 = $1,471,423.65

Now, determine the present value of this amount:  $1,471,423.65 / (1.06^20) =$458,796.85

To learn more about present value, please check: brainly.com/question/26537392

4 0
1 year ago
(Please no links! and help ASAP!) An extract of a balance sheet is given. What are the debt-equity ratio and the quick ratios?
garik1379 [7]

Answer:

Explanation:

i think

1. its c

2. a

5 0
2 years ago
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