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12345 [234]
2 years ago
9

Keynes argued that the downward slope of the demand for money curve depends on the?

Business
1 answer:
Naya [18.7K]2 years ago
6 0

Keynes argued that the downward slope of the demand for money curve depends on the rate of interest.

<h3>What is money curve?</h3>

A vertical curve that depicts the relationship between the supply of money and the interest rate; because the money supply is under the control of the central bank, it is unaffected by changes in the interest rate. The level of income and real GDP, the level of prices, expectations, transfer costs, and preferences are some of the most significant factors that might alter the demand for money.

Because the Fed determines the amount of money that is accessible without taking the value of money into account, the money supply curve is vertical. The downward slope of the money demand curve results from consumers having to carry more cash to make purchases when the cost of goods and services rises as the value of money declines.

Due to the inverse link between the amount of money demanded and the interest rate, the money demand curve has a negative slope. In other words, the interest rate, which stands for the opportunity cost of holding money, causes the money demand curve to slope downward.

The demand curve has a downward slope, which indicates that as the price falls, demand will rise. The demand curve has a decreasing slope since quantity is plotted on the x-axis and price is plotted on the y-axis.

Hence, Keynes argued that the downward slope of the demand for money curve depends on the rate of interest.

To learn more about money curve refer to:

brainly.com/question/1139186

#SPJ4

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<span>Johanna must come up with 800 more dollars in order to pay her college tuition. This number is calculated by multiplying 8,000 by 10% (or .10). When these calculations are completed, you get the number 800. Because the college tuition increases by 10%, calculating 10% of 800 tells you the amount risen due to inflation.</span>
6 0
3 years ago
A company has a net cash inflow from operating activities of $793,000, a net cash outflow of $58,000 from investing activities a
IRINA_888 [86]

Answer:

Incorrect Statement about the Statement of Cash Flows:

c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section.

Explanation:

Cash dividends of $201,000 will be reported as a cash outflow in the financing activities section and not the investing activities section.

Statement of Cash Flows is broadly divided into three, the operating, investing, and financing activities sections.  The operating activities section show the cash flows from the normal business of the enterprise.  The investing activities section shows the acquisition and disposal of investments made by the company in cash.  While, the financing section shows the inflow and outflow of cash resulting from the funding of the business by stockholders and noncurrent creditors.

4 0
3 years ago
Why is cash flow important to government entities? How does an administrator plan for cash flow? What tools are available for th
vodka [1.7K]

Answer:

Cash flow is important to government entities because:

As with non-government entities, cash flow is important to government organizations because it is required for the operations of any organization regardless of whether they are government-owned or not, for-profit or not.

The measurable difference in the cash balance of any organization from one period to the next is referred to as Cashflow. No business or entity can continue operations if they keep taking out or spending more cash than they can make.

An administrator can plan for cash flow using a Cash Flow Planner.

This can take the form of a simple excel spread sheet  with one column showing on one side all the monies that one is expecting to come in (Account Receivables) and an adjacent column showing all the monies one is expecting to pay out (Account payables).

At the bottom of the excel, you can show the bank balance.

There are specialised apps that help perform this function. An example would be Quickbooks, Planware, Cash Flow Planner, etc.

Cheers!

6 0
3 years ago
May 24 Sold merchandise on account to Old Town Cafe $18,450. The cost of goods sold was $11,000.
zubka84 [21]

Answer:

Date       General Ledger                                        Debit        Credit

May 24   Accounts Receivable-Old Town Café   $18,450

                      Sales                                                                   $18,450

              Cost of goods sold                                 $11,000

                       Inventory                                                            $11,000

Sept. 30  Cash                                                         $6,000

                      Allowance for Doubtful Accounts                      $12,450

                      Accounts Receivable-Old Town Cafe               $18,450

Dec. 7    Accounts Receivable-Old Town Cafe      $12,450

                      Allowance for Doubtful Accounts                     $12,450

              Cash                                                             $12,450

                       Accounts Receivable-Old Town Cafe               $12,450

7 0
2 years ago
What is unemployment insurance fund
MArishka [77]
Salutations!

What is unemployment insurance fund?

Unemployment insurance fund is a short term holiday, or consolation where workers do not work due to personal issues, such as: illness, family cases etc.

Hope I helped :D
3 0
3 years ago
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