Answer:
The correct answer is D) "increase"
Explanation:
Suppose that households became mistrustful of the banking system and decide to decrease their checking account balances and increase their holdings of currency. Using the money demand and money supply model and assuming everything else is held constant, the equilibrium interest rate should Increase. As income increases, the demand for money raises up. This increase in demand raises the equilibrium interest rate.
The money supply in an economy will decrease if the bank customers decided as a group to pay off their loans and not take out any new loans.
<h3>What is a
money supply?</h3>
In an economy, the money supply refers to the total amount of money that is circulatingb in such economy.
The rate of use of currency, loan instrument, certificates of deposits etc are determines the level of increase or decrease of the level of money supply in an economy.
Therefore, the Option D is correct.
Read more about money supply
<em>brainly.com/question/3625390</em>
Answer:
The correct answer is letter "A": debt; equity.
Explanation:
Economists Franco Modigliani (1918-2003) y Merton Miller (1923-2000) in the signaling theory assume that investors and managers have the same information. Differences were caused as the result of companies issuing new stock when its price was overvalued or bonds when their price is undervalued.
Under that scenario, <em>managers usually were confident in their firms' ability to generate capital. Then, they tended to issue new debt. However, managers discouraged usually issued new equity in the form of stocks or bonds.</em>
Answer:
The correct answer is letter "A": Level 2 - Enhanced Steady-State.
Explanation:
In the enhanced steady-state (L2) of an emergency, only part of the members of the critical response team is requested to verify the credibility of the threat to find out what are the steps needed to be followed under an unfavorable situation. Among their activities, the staff members issue alerts and coordinate with mission partners.
Answer:
c- 1.15 units.
Explanation:
This can be calculated as follows:
Expected price at 10 percent = $5 * 10% = $0.5
Expected price at 90 percent = $2 * 90% = $1.80
Total expected price (EP) = $0.5 + $1.80 = $2.3
Since profit is maximized when EP = MC, we have:
2.3 = 2Q
Q = 2.3 / 2 = 1.15
Therefore, OJ should produce 1.15 units to maximize expected profit. The correction is therefore c- 1.15 units.