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Anastasy [175]
3 years ago
7

As the "P" the price level falls:

Business
1 answer:
Dimas [21]3 years ago
5 0

Answer:

B. households want to lend more, so the interest rate falls, making the quantity of goods and services demanded rise.

Explanation:

Money is demanded for 3 purposes : Transaction demand (for buying selling), precaution demand ( for contingencies), speculative demand (for investment gains)

  • As prices fall & things get cheaper, money demanded for transaction purposes fall. It leads to money being demanded more for precautionary & speculative purpose.
  • This implies that households would lend money more, to earn more in form of interests. However, this increase in money funds supply will reduce their price i.e their interest.
  • Interest rate is the opportunity cost sacrifised for money consumed. Low interest rate means low opportunity cost of money consumption. So, it will be demanded more for spending on goods & services, goods & services demand will rise.
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A primary reason why supply chains exist is that____________ is added at each step of every supply chain.
jeka94

<u>Specialization</u> is added at every step of the supply chain which could the reason for the existence of a supply chain.

<h3>What is meant by supply chain?</h3>

A supply chain is a linkage between the company and its vendors for product distribution in the market for sale.

The supply chain involves many entities like production firms, vendors, distribution companies, transportation companies, etc. Every step of the supply chain needs specialized expertise for performing the operations like the production firm needs raw materials to convert the goods into saleable ones.

Therefore, the existence of a supply chain would be due to specialization which requires in every step of it.

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2 years ago
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According to research, dealing with a boss is the hardest part of working for 60 percent of employees. The study of professional interactions is focused on superior-subordinate relationships.

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a. No, the firm needs to take the volatility of short-term rates into account.

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