Answer:
Market interest rate is also known as nominal interest rate. The nominal interest rate is sum of real interest rate and inflation rate. Fed try to control the monetary condition and real interest rates by manipulating money supply. These interest rates also affect the demand of money in market.
Part (a)
When commission of brokers decreases then buying and selling of stocks becomes easier and cheaper and people would transact in more and more stocks which will decrease the demand of money as liquidity of stock has increased.
Part (b)
When grocery store starts accepting credit cards then people would need to carry less cash and demand of money will decrease.
Part (c)
As financial investors are now worried about riskiness of stocks so they will decrease their investment in stocks and prefer holding more money so demand of money will increase.
Answer:
$557,000
Explanation:
Operating activities: It includes those transactions which affect the working capital. It means that the increase in current assets and a decrease in current liabilities would be deducted and a Decrease in current assets and an increase in current liabilities would be added.
The computation is shown below:
= Income reported on the income statement + decrease in account receivable
= $539,000 + $18,000
= $557,000
The decrease in account receivable
= $142,000 in beginning of the year - $124,000 in end of the year
= $18,000
Answer:
Prices increase, C
Explanation:
Inflation is when the value of a dollar, or other currency type, drops. This happens most commonly when more money is being printed. The more there is, the less it is worth. This causes prices to increase.
Hope this helps
Answer:
B.
Explanation:
Based on the information provided it can be said that people are still uncomfortable with other ethnic groups marrying into their families and living in their neighborhoods. This form of segregation still exists today in the United States of America, and mostly seems to be so because many groups prefer to live and share their space with only people from their same culture and background.
Answer:
The correct answer is letter "E": The government implemented a generous welfare plan 3 years ago to support people who cannot find work.
Explanation:
According to the excerpt, a government implemented fiscal policies to increase employment for the past two years but the rate has not risen since then. One of the reasons for such a situation could be <em>generous welfare support</em> implemented one year before the fiscal policy measures started.
<em>If the benefits for the unemployed increase they will be discouraged to return to the labor force</em>. It implies the government should keep the welfare benefits at a level from where unemployed individuals can cover basic needs only but encourage them to find a job to be productive for the economy.
