The money supply in the economy decreases.
Answer: Option A
<u>Explanation:</u>
The central bank of the country has certain measures which can control the supply of the money in the economy. One of those measures is to buy and sell bonds in the market.
If the central bank sells bonds to the other banks, it will result in the decrease in the supply of the money in the market because the reserves in the bank also reduces. The bank purchases the bonds from the central bank and thus the reserves decrease.
Hello!
The answer to your question is "price elasticity".
:)
Answer:
False
Explanation:
International Product Cycle is a model that patterns international manufacturing & trade of product . It has 4 stages :
- Introduction - Innovated Invention in a developed country. Limited production & consumption, no competition
- Growth - Spread to other developed countries, foreign production & competition starts, consumption & coverage rise.
- Maturity - Spread to developing countries, stagnant growth in developed countries & fast growth in less developed countries
- Decline - Spread to less developed countries, technology outdated, various substitutes emerge & no. of sellers decline, demand still exist in less developed countries.
So: the next stage after 'Innovated Invention' in a developed country X is - its growth in other developed countries, not 'manfacturing in developing countries' (reflected in 3rd maturity stage).
Answer:
$50
Explanation:
The computation of the stock price level is shown below:
Maintenance margin = Number of shares purchased × price - loan amount ÷ Number of shares purchased × price
30% = 100 shares × price - $3,500 ÷ 100 shares × price
30% × 100 shares × price = 100 shares × price - $3,500
30 × price = 100 shares × price - $3,500
After solving this, the price would be $50
And, the loan amount equal to
= Number of shares purchased × per share price × initial margin
= 100 shares × $70 × 50%
= $3,500
