Option C. Suppose there is an increase in the number of buyers of cars and an increase in the cost of manufacturing cars. The basic graphing model of supply and demand predicts: the equilibrium price of cars will increase, but the impact on the equilibrium quantity of cars cannot be determined without additional information
<h3>What is demand?</h3>
This is the term that is used to refer to the number of people that are willing to buy a product at a given wage rate.
When there is a rise in the demand of cars, there would be a rise in rhe equilibrium price of the cars.
Complete question
Suppose there is an increase in the number of buyers of cars and an increase in the cost of manufacturing cars. The basic graphing model of supply and demand predicts:
A. The equilibrium, quantity of cars will decrease, but the impact on the equilibrium price of cars cannot be determined without additional information
B. The equilibrium quantity of cars will increase, but the impact on the equilibrium price of cars cannot be determined without additional information.
C. the equilibrium price of cars will increase, but the impact on the equilibrium quantity of cars cannot be determined without additional information
D. the equilibrium price of cars will decrease, but the impact on the equilibrium quantity of cars cannot be determined without additional information
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Answer:
The correct answer is: firms are unlikely to undertake investment.
Explanation:
The liquidity trap is a situation described in the Keynesian economy according to which, liquidity injections into the private banking system by the central bank do not lower interest rates or inject money into the economy and therefore do not stimulate economic growth as claimed by monetarism.
The liquidity trap occurs when people accumulate cash because they expect an adverse event, such as deflation, reduction in aggregate demand and GDP, an increase in the unemployment rate or a war. People are not buying, companies are not borrowing and banks are not lending either because they do not have enough solvency since the economic outlook is uncertain and investors do not invest because the expected returns on investments are low.
The most common characteristics of a liquidity trap are interest rates close to zero and fluctuations in the monetary base that do not translate into fluctuations in general price levels.
The telephone box and the other two about calls go to the bottom picture and the rest the top i would say
The given options are all examples of fiscal policy enacted by government except d. lowering the interest rate.
<h3>What is fiscal policy?</h3>
Fiscal policy refers to actions by the government that are meant to improve or constrict economic activity.
They do so by either spending, reducing spending, or altering tax rates. Fiscal policy does not directly influence interest rates as this is done by monetary policy.
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