The answer to the question above is time. As time pass, it will show the effects of the supply and how it will be elastic or inelastic. Time will tell how the changes will happen because it shows the length of the effects will occur and when it will the changes take place. This will help the people evaluate the supply of goods as time takes place.
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
Answer:
B) False
Explanation:
Margin of safety measures the percentage difference between actual sales and break even sales.
Margin of safety acts like a buffer zone that the Company can lose before it stops making profits.
Margin of safety is calculated as follows:
Margin of Safety = (Current sales - break even sales) / Current sales
30% margin of safety indicates that the Company can bear to lose 30% of its sales before it reaches to break even level.
Net profit margin of 30% shows that every dollar of sales earns 30 cents in profit.
