Answer:
a.) Increasing the opportunity cost of holding money, a high interest rate reduces the quantity of money demanded. This will lead to movement up and to the left along the money demand curve.
b.) A 10% fall in prices will reduce the quantity of money demanded at any given interest rate, which will cause the money demand curve to shift leftward.
c.) This technology change will reduce the quantity of money demanded at any given interest rate, so it will shift the money demand curve leftward.
d.) Payments in cash will require employers to hold more money which will increase the quantity of money demanded at any given interest rate, this will lead to shift in the money demand curve rightward.
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Answer:
Beneficiary
Explanation:
The person who gets the benefit in return for the trust is called the beneficiary.
Under this process, one person can make a profit due to the trust of the other person.
In the given question , Martin's trust will benefit given to his son Nathan.
So, Martin's son Nathan will be called the beneficiary.
Answer:
<u>Ajinomoto will likely not have an incentive to increase or change its output of MSG.</u>
Explanation:
Remember, marginal cost focuses on the increase in cost additional unit of a product. Therefore, based on the limited information provided, Ajinomoto's decision will likely be based on it's market share. If the marginal cost equals zero, and it has more of the market share it will likely not influence them to change or increase their output.
Answer:
The perpetuity pays $2,040 every year.
Explanation:
The formula to find the present value of a perpetuity is
present value = cash flow/interest rate
In this question we are given the interest rate and present value and we need to find the cash flow, so we will just input these values in the formula.
Present value = 34,000
Interest rate =6%
34,000=Cash flow/0.06
34,000*0.06= cash flow
Cash flow =2,040
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