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<h3>= 25% × $1,400,000 ÷ 100</h3><h3>= <u>$350,000</u></h3>
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The purpose for holding money in economic in classified into:
- transactional motive
- precautionary motive
- speculative motive
<h3>The Drop-downs includes:</h3>
- When price levels rise, people hold onto cash. - Speculative motive
- When interest rates are low, people forgo interest income - Speculative motive
- When aggregate income is high, people hold cash to buy goods that are plentiful and cheap - Transactional motive.
- When interest rates are low, people speculate that they will soon increase - Speculative motive
- Andy decided to hold his money in cash, as he did not earn sufficient money as income from interest. - Speculative motive
- Ben is a consumer and decides not to purchase luxury items because they are too expensive - Speculative motive
- Chad thinks it to be a good opportunity to buy the products from the market as the supply has increased. - Transactional motive
- Daphne is holding onto her money as she feels that the interest rate will go up soon - Speculative motive
Read more about holding motives
<em>brainly.com/question/16287958</em>
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Answer:
The economy
Explanation:
The external environment refers to the outside factors that can affect an organization's operations. One of those factors is the economy as changes on things like exchange rates, interest rates and taxes can provide opportunities or create threats for a company. According to this, the answer is that this represents the influence of the economy in the external environment on the organization as the increase on the interest rates didn't allow the company to borrow the money to build the plant.
These:
department stores AND
online sellers
I hope it helped you!
Answer:
The correct answer is the circular flow model.
Explanation:
The circular flow model shows the movement of resources between different sectors in the economy. The firms or business hire factors of production from the households. In return, they make factor payments. They use these factors to produce goods and services. The households purchase these goods and services and pay by their factor incomes.
The government sector charges taxes from households and businesses and provides goods and services in return. The government also hires factors of production and make factor payments. It also purchases goods and services from the businesses and pays for it.
