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alekssr [168]
2 years ago
6

The fed increases the quantity of money. in the short run, the quantity of money demanded ______ and the nominal interest rate _

_____.
Business
1 answer:
Nimfa-mama [501]2 years ago
8 0

The quantity of money demanded <u>increases</u> and the nominal interest rate <u>falls.</u>

In the short run, if the Fed(Federal Reserve) increases the quantity of money, the quantity of money demanded will increase and the nominal interest rate falls.  

The quantity of the money supplied and the nominal interest rates has an inverse relation. That is, when there is a huge supply of money in a short-term, it will cause an increase in the nominal interest rate.

The nominal interest rate refers to the interest rate before adjusting to inflation or price-hike. It balances the supply and demand of money.

So when there is an increase in the supply of money ,there will be the resulting increase in the demand of money too. The total money that the population wants to hold is referred as the money demanded.

Learn more about Fed( US Federal Reserve) at brainly.com/question/25843620

#SPJ4

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<u>A Strategic Alliance</u>

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A customer sells short 100 shares of ABC at $35 and buys 1 ABC Jul 35 Call @ $3. The stock falls to $30 and the customer closes
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Answer:

The answer is $300 gain.

Explanation:

Operations:

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  • Buy 1 ABC Jul 35 Call @ $3 (one call equals to 100 shares)= 100 * (3) = $(300), accumulated = + 3,500 - 300 = + 3,200
  • Closes the option contract at $1 = 100 * 1 = + $100, accumulated = + 3,200 + 100 = + 3,300
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5 0
3 years ago
When Anhueser Busch InBev sells Budweiser beer made in St. Louis, MO, to Germany, the sales of its product would be classified a
kvasek [131]

Answer:

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So when Anhueser Busch InBev sold Budweiser beer made in St. Louis, MO, to Germany, it carried out a United States export to Germany.

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