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inna [77]
2 years ago
9

Investment depends on the ______ interest rate, and money demand depends on the ______ interest rate. a. real; real b. nominal;

nominal c. real; nominal d. nominal; real
Business
1 answer:
ivolga24 [154]2 years ago
6 0

The correct option is C.

<h3>What are investments?</h3>

Investment is a broad term used to refer to any asset or item(s) that are acquired with the sole aim of generating profit. These investments often take various forms such as

  • Shares investments
  • Property investments
  • Cash investments
  • Fixed interest investments.

Typically these investments depend on the real interest rate, and money demand depends on the nominal interest rate.

You can learn more about nominal and real interest rates here brainly.com/question/13324776

#SPJ1

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I think the most appropriate answer would be Bull market.



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If you are the driver or owner of a vehicle which is in a crash that is your fault, and you are not insured in compliance with t
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Explanation:

3 0
3 years ago
Expansionary monetary policy is usually has real expansionary short-run effects. as prices adjust, the long-run impact of?
denpristay [2]

Expansionary monetary policy is usually has real expansionary short-run effects. as prices adjust, the long-run impact of inflationary effect.

Expansionary or known as  loose policy is a form of macroeconomic policy that seeks to encourage economic growth. Expansionary policy might consist of either monetary policy or it can be  fiscal policy or it can be the combination of the two.

It is a part of the general policy prescription of Keynesian economics which is  to be used during economic slowdowns as well as the recessions in order to moderate the downside of economic cycles.

Expansionary policy can involve significant costs as well as the risks which includes macroeconomic or microeconomic, and political economy issues.

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4 0
1 year ago
XYZ Company has expected earnings of $3.00 for next year and usually retains 40 percent for future growth. Its dividends are exp
Verizon [17]

Answer:

Price of stock  = $40

Explanation:

According to the dividend growth model, the price of a stock is the present value of expected dividend discounted at the required rate of return.

This is done as follows:

Price of a stock = D×(1+r)/(r-g)

D(1+g) - Dividend for next year = 100%-40%× $3 = $1.8

g- growth rate - 10%

r- required rate of return - 15%

Price of stock = 1.8× (1.1)/(0.15-0.1)

                    = $40

6 0
3 years ago
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