Answer:
A. Efficient in production but not necessarily in allocation.
Explanation:
Allocation is defined as the distribution of a limited quantity of product during various time periods. The economy in the excersice can produce, therefore is efficient in this aspect but since its distribution is limited its allocation is not efficient.
I hope you find this information useful and interesting! Good luck!
Answer:
a. Decline
Explanation:
Whenever there is a reduction in the price level, this results in gains in the real money supply which eventually moves the LM curve to the right.
Hence, given that, the IS curve has a downward slope, the IS and LM curves will meet at a higher level of income and a lower interest rate.
Therefore, the correct answer, in this case, is Option A: DECLINE
Note LM means Liquidity and Money
While IS means Investment and Savings.
Answer: the maximum price (future amount) he could pay is
“$4,882.5“
Explanation:
The question above can be calculated using simple interest formula with amount ;
A = p + prt
A = p (1 + rt)
From above question, variables given are:
principal 'p' = $3,500
time 't' = 5years
interest rate = 7.9% = 0.079
A = p(1 + rt)
A= 3500[1 + 0.079(5)]
A = 3500 [ 1 + 0.395]
A = 3500 ( 1.395)
A = $4,882.5
Approximated to $4,883 as a whole figure.
This is the maximum amount he could pay after 5 years.
The money supply term that includes accounts that can be accessed quickly and easily and most savings accounts, mutual funds, and Certificates of Deposit is M-2.
<h3>What is M-2?</h3>
The M2 is broader measure of MS although it is has a less liquid measure compared to M1 and consists of currency, traveler’s checks, checking deposits, savings accounts, money market mutual funds etc.
M2 = M1 + savings accounts deposits + money market mutual funds.
M2 includes all M1 plus near money such as savings deposit, money mutual fund and other time deposit that are less liquid and not easily transferrable to physical money. M2 is a broader definition. M2 includes M1, certificates of deposit, money market account balances, and savings account balances.
M2 is a proportion of the cash supply that incorporates money, checking stores, and effectively convertible near money. M2 is a more extensive proportion of the cash supply that M1, which simply incorporate money and checking deposits.
Learn more about M-2 on:
brainly.com/question/13032470
#SPJ4