The level of GDP is the main determinant of the amount of money demanded for transactions.
The income (Y), the expected inflation (π), and the interest price (I) are 3 important primary determinants in a popular money call for characteristic. In principle, cash call for is an incremental characteristic of real profits as normal price range circumstance dictates, and it is the maximum critical variable in money call for characteristic.
In summary, the demand for cash depends on the charge degree, the interest fee, and the actual gross home product. these 3 elements combine to determine the fraction of human beings' wealth that they maintain as coins and checking for shopping and the fraction that they preserve as interest-bearing belongings.
For a given amount of wealth, the solution to this query will depend upon the relative costs and blessings of retaining money versus other property. The demand for money is the connection between the amount of money human beings need to keep and the elements that determine that quantity.
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Answer:
The brand is trying to come up with an advertising appeal.
Explanation:
Here an international denim brand wants its advertising agency company to come up with an advertising appeal, which would be able to grab attention of the young people and these people would be able to emotionally connect to the brand and thus through this appeal they would be able to persuade the consumers to buy their products.
Explanation:
<u>Penetration Pricing:
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It is the marketing approach that consists of a strategy to insert a new product in the market offering lower prices.
This strategy would help a new company, for example, to enter the market and already achieve good demand for its products and services, in addition to this strategy being a barrier of entry for new competitors.
Penetration pricing is the most appropriate marketing strategy for companies that need to reach a market place and reach a large number of people, which is achieved when offering a product with quality and benefits that can create consumer needs for customers, which makes it possible for the company to fulfill its objective and then be able to establish itself in the market and then increase prices so that the demand for the products is maintained.
This strategy is generally used by retailers and organizations that offer products offered in bulk, such as food, cosmetics, automobiles, etc.
Answer:
A) above the security market line.
Explanation:
A) above the security market line.
Option "a" is correct because all the correct priced stock will be shown on the security market line while the underprice stock is represented above the security market line and the overpriced stock is shown below the security market line.
Answer:
a) the central bank would have to decrease the money supply which would decrease output.
Explanation:
In the case when the long run price would fall due to the reduction in the aggregate demand and there is a rise of short run aggregate supply so the central bank would have to reduce the money supply due to this it automatically reduced the output as it shows the direct relation between the money supply and the output
Therefore the correct option is a.
