Answer:
A decrease in both the market equilibrium price and the market equilibrium quantity of autos sold.
Explanation:
A fall in the demand for automobiles would shift the demand curve to the left.
As a result of the leftward shift, both equilibrium price and quantity would fall.
I hope my answer helps you
Answer:
lower investment and raise the interest rate.
Explanation:
If consumers have positive economic expectations, then their marginal propensity to consume (MPC) will increase. That means that for every disposable dollar, a greater proportion will be used to consume goods and services and a smaller proportion will be left for savings.
Since private savings = investment, as the MPC increases, investment decreases. Since total savings decreases, the total amount of money available for borrowing and investing will decrease. Since the supply of available funds decreases, then the price of money (interest rate) will increase.
Answer:
Direct deposit means that a person brings their paycheck to the bank and deposits it immediately after receiving it.
Explanation:
Non Programmed decisions are used for unique and ill-structured situations of organization; both internal and external. Mostly Lower level managers makes Programmed decision
Answer:
The equilibrium price level will double.
Explanation:
Suppose that the economy has a money supply of $4 billion and the income velocity of money is 8, the price level will be 4 and the real GDP is $8 billion. The formula we are using is:
- Money supply x velocity = price level x real GDP
If the money supply remains the same ($4 billion), the income velocity of money is 16 (it doubles), and the real GDP is $8 billion, then the price level will be:
$4 x 16 = price level x $8
$64 = price level x $8
price level = $64 / $8 = 8
So the price level has doubled to 8.
