1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Blababa [14]
2 years ago
11

Equilibrium levels of income and interest rates are ______ related in the goods and services market, and equilibrium levels of i

ncome and interest rates are ______ related in the market for real money balances.
A. positively; negativelyB. negatively; negativelyC. positively; positivelyD. negatively; positively
Business
1 answer:
dsp732 years ago
7 0

Answer:

The correct answer is option D.

Explanation:

The income and interest rates are inversely or negatively related in the goods market.

An increase in interest rate would lead to increase in the cost of borrowing.As a result the capital investment will fall. This would further contribute in a decline in the production. This ultimately causes income level  to decline.

In the money market though equilibrium levels of income and interest rate are positively related.

The equilibrium in the money market is determined by the intersection of demand for money curve and supply of money curve.

The demand for money depends on transactionary and precautionary motives. When there is an increase in income, the transactionary demand for money will increase as people will spend more. The increase in demand would cause the interest rate to rise.

In this way, income and interest rate arepositively related in the money market.

You might be interested in
The potential loss for a writer of a naked call option on a stock is Multiple Choice increasing when the stock price is decreasi
jok3333 [9.3K]

Answer:

The correct answer will be Option A (unlimited).

Explanation:

  • The potential loss which always relies on something like a potential occurrence happening or otherwise not happening. One such loss to such a writer's exposed put option on either a stock seems to be indefinite or unlimited.
  • Unless the loss becomes probable as well as the sum could be calculated, the damage including responsibility must be reported with either the journal entry.

Other available scenarios aren't connected to the situation in question. So alternative A, therefore, the perfect solution.

3 0
3 years ago
To​ economists, the social cost of unions depends primarily on
Arisa [49]
To economist, the social cost of union depends primarily on the people. People do not start their lives with fully developed theories about systems of society where unions are formed to fight for socialism. This organize monopolies to break down competition. 
4 0
3 years ago
More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They rec
Alla [95]

Answer:

Sell the parts without any processing because the profit is higher ($20,000 vs $15,000)

Explanation:

they have two options:

  • option A, sell the parts as they are and make $20,000 in profits (= $120,000 - $100,000).
  • option B, further process the parts by spending $75,000 and sell them for $190,000, and make only $15,000 in profits (= $190,000 - $100,000 - $75,000).

The best option is A, to sell the parts without any processing because the profit is higher and they do not have to spend more money.

6 0
3 years ago
The interest on the projected benefit obligation component of pension expense:__
Aleonysh [2.5K]

Answer:

Option b (reflects..................settled) is the right response.

Explanation:

  • The estimated beneficiary obligation was indeed unwounded by that of the identification of inflation rates through an investment that raises something both PBO reserve as well as the retirement expenditure between each duration.
  • The premium on either the expected advantage commitment portion including its pension cost illustrates the amounts beyond which the pension contributions will indeed be reasonably negotiated.

Any other option is not connected to that case. That's the right choice.

4 0
2 years ago
Professional athletes attempting only to maximize income will defer larger salaries if:
GenaCL600 [577]
Professional athletes attempting only to maximize income will defer larger salaries if DEFERRED PAYOUTS ARE ADJUSTED UPWARD TO COMPENSATE FOR FOREGONE INTERESTS.
If professional athletes, whose sole aim is larger income are asked to wait for sometime before collecting their salaries, with the promise that their incomes will be raise for the period of their waiting, then, most of them will gladly agree to the arrangement, since, they are sure of higher amounts.
4 0
3 years ago
Other questions:
  • A buyer who needs a significant amount of trust with the seller is looking for a(n) _____. transactional relationship strategic
    12·1 answer
  • On January 31, 2016, Charlie Company paid employees $6,500 for January wages earned. Prepare the general journal entry (without
    11·1 answer
  • As noted in your text, which of the following ranks as the top unethical behavior by employees as reported by chief marketing of
    12·1 answer
  • Assume the profit margin and dividend payout ratio are constant. By what amount will retained earnings increase if sales are pro
    14·1 answer
  • In a given year, a consulting firm has the following costs: $600,000 in wages and salaries paid to employees; $73,000 in rental
    13·1 answer
  • Long-term creditors are usually most interested in evaluating __________
    11·1 answer
  • The social and economic goals of __________ include private ownership of land and business.
    11·1 answer
  • The two factors that determine the costs of manufacturing inputs (materials, labor, and overhead) are price and quantity.
    13·1 answer
  • As a business owner you decide to hire a new employee named Maria. You decided to pay Maria $15.00 an hour for her work. At the
    13·1 answer
  • Department and shift teams in many hospitals have brief stand-up daily huddles during which team members share information and e
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!