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
KengaRu [80]
3 years ago
10

As real GDP falls: a. money demand rises, so the interest rate rises. b. money demand rises, so the interest rate falls c. money

demand falls, so the interest rate rises. d. money demand falls, so the interest rate falls.
Business
1 answer:
Angelina_Jolie [31]3 years ago
7 0

Answer:

Option (D) is correct.

Explanation:

When there is a falls in the real gross domestic product then as a result the aggregate demand by the consumers decreases, so this will reduce the demand for money because there is a reduction in the overall demand for the products.

Hence, interest rate in this economy must fall to increase the money demand in the economy.

Therefore, we can conclude that as the real GDP falls, then there will be a fall in the money demand and as a result of lower demand for money, interest rate also falls.

You might be interested in
Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positivel
Dmitry_Shevchenko [17]

Answer:

a) Portfolio ABC's expected return is 10.66667%

Explanation:

The expected return is based on the risk factor of a project. If a project has higher risk its rate of return will be higher. Portfolio ABC has one third of its funds invested in each stock. The return of on A and B are 20% and 10%. Their beta is 1.0 for both the stocks while stock C has beta 1.4. The portfolio expected return will be 10.66667%.

5 0
3 years ago
Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5. Country B had
SpyIntel [72]

Answer:

Country

  • c. B had the higher level of real GDP and Country A had the higher level of real GDP per person

Explanation:

Country A's population 2,000, worked 1,300 with 8 hours a day with a productivity of 5 = 52,000 units of something produced. GDP per capita = 52,000 / 2,000 = <u>26 per capita</u>

Country B's population 2,500, worked 1,700 with 8 hours a day with a productivity of 4 = <u>54,400 units</u> of something produced. GDP per capita = 54,400 / 2,500 = 21.76 per capita

3 0
3 years ago
Qu. 13-95 (Algo) Two products, QI and VH, emerge from a joint process... Two products, QI and VH, emerge from a joint process. P
Andrews [41]

Answer and Explanation:

The computation of the financial advantage or disadvantage is as follows:

<u>Particulars                                              Product Q1 </u>

Selling price after further processing  13.00

Selling price at split off point                 11.00

Incremental revenue per pound or gallon 2.00

Total production                                    2,200.00

Total Incremental Revenue                 4,400.00

Total Incremental Processing costs        10,200.00

Total Incremental profit or loss                   (5,800.00)

Since there is an incremental loss so the same would be Sold at split off

7 0
3 years ago
Quien es el equipo con más champions​
Black_prince [1.1K]

Responder:

Real Madrid

Explicación:

El Real Madrid ha ganado la Liga de Campeones un récord asombroso 13 veces. (Todo lo que hice fue buscar en Google "quién es el equipo con más campeones" y eso es lo que obtuve) Espero que esto ayude.

6 0
3 years ago
Blackwelder co. calls a meeting to announce to the media that it is hiring a new ceo and changing the company name to natural ba
Galina-37 [17]
<span>Blackwelder co. calls a meeting to announce to the media that it is hiring a new ceo and changing the company name to natural basics. the company will distribute additional materials at this meeting, which is called a press conference.

</span><span>A press conference is a meeting organized for the purposes of distributing information to the media and answering questions from reporters.</span>
5 0
3 years ago
Other questions:
  • organizations can gain competitive advantage simply by matching their competition in terms of cutting cost and responsiveness to
    8·2 answers
  • The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product
    10·1 answer
  • What type of tax has the same percentage tax rate for everyone regardless of income?
    6·1 answer
  • a procedure on the medicare nonparticipating fee schedule is priced at $320. How much can the nonparticipating provider charge f
    14·1 answer
  • Technology influences the way that business organizations function. Make a list of the various global industry trends that play
    6·1 answer
  • arn​ Basket, Ltd., sells​ hand-knit scarves. Each scarf sells for​ $40. The company pays​ $150 to rent a vending space for one d
    11·1 answer
  • Which statement is false about the circular-flow diagram? A. Money flows in the direction opposite to goods and services and fac
    13·1 answer
  • A _______ lease covers the landlord's expected increases in expenses by increasing the rent on an annual basis over the life of
    10·2 answers
  • What is the quantity of money demanded when the interest rate is 6%? quantity: $ billionbillion What is the quantity of money de
    14·1 answer
  • If the actual unemployment rate is 7% and the cyclical unemployment rate is 2%, then the natural rate of unemployment is:
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!