The correct option is, (d) smaller, greater.
- The LM curve is steeper the smaller the interest sensitivity of money demand and the greater the effect of income on money demand.
<h3>What does a steeper LM curve mean?</h3>
- The LM curve will be steeper if the income-elasticity of the demand for money is higher and the interest-elasticity is lower.
- The LM curve is virtually vertical when the demand for money is generally indifferent to the interest rate.
<h3>What causes the LM curve to shift?</h3>
- The LM curve shifts right as a result of monetary stimulation, or boosting the money supply, leading to higher output and lower interest rates.
- The IS curve is shifted to the right by fiscal stimulus, or boosting government spending and/or lowering taxes, which raises interest rates while driving up output.
<h3>What is income sensitivity of money demand?</h3>
- The greater the interest rate, as the minus sign suggests, the more likely people are to invest their money rather than have it available for consumption.
- The income sensitivity of real money demand and the interest sensitivity of real money demand are the two variables that are regulated by sensitivity coefficients.
Learn more about LM curve here:
brainly.com/question/26430220
#SPJ4
Answer:
Long-term capital gain = $73,000
Explanation:
The long-term capital gain (LTCG) can be calculated using the following formula:
Long-term capital gain = Selling price - Cost of acquisition - Cost of improvement .............. (1)
Where;
Selling price = $212,000
Cost of acquisition = $113,000
Cost of improvement = $26,000
Substituting the values into equation (1), we have:
Long-term capital gain = $212,000 - $113,000 - $26,000 = $73,000
Note:
Since no information on cost inflation index is given in the question, that implies that there is no need to use indexed cost of acquisition and indexed cost of improvement in our calculation. Therefore, the Cost of acquisition and Cost of improvement has to be used as given in the question.
Answer:
<u>The effect of government regulation on a monopolist's production decisions</u>
Explanation:
The effect of a large government budget deficit on the economy's price level
The superavit or deficit of the government is a macroeconomics subject.
The money market is also macroeconomics.
The impact of regulation or specifit taxes or tax extemption on a monopolist's production will be part of microecnomics, because it will impact on which level the monopolist's production finds equilibrium after the legislation.
The answer is false. The investment is profitable if the total of all the adjusted cash inflows and the outflows is higher than zero. The Positive net cash inflow additionally indicates that the rate of return exceeds the 5% discount rate.
The required rate of return (RRR) for a stock with a high beta in relation to the market should be higher for investors utilizing the inflows CAPM calculation. The Investors must be compensated for the increased level of risk associated with investing in the higher beta stock by the greater RRR in comparison to other the investments with low betas.
To learn more about investments, click here.
brainly.com/question/15105766
#SPJ4
New Coke failed due to negative opinions on the product when it was reformulated, without this tremendous fail, Coke would probably have kept the New Coke without thinking of going back to the Classic Coke, this rebranding which resulted in significant success wouldn’t have happened if the consumers didn’t hate New Coke so much.
