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Genrish500 [490]
3 years ago
9

Decreases in the money supply affect the economy indirectly because A. interest rates decrease causing planned investment to inc

rease​, which causes an increase in aggregate demand. B. people spend excess money balances and​ thus, aggregate demand increases. C. interest rates increase​, causing planned investment to decrease​, which causes a decrease in aggregate demand. D. people have insufficient money balances and thus aggregate demand decreases. E. There is no indirect effect of the money supply on the economy.
Business
1 answer:
Nimfa-mama [501]3 years ago
8 0

Answer:

The correct answer is option C.

Explanation:

A decrease in the money supply would reduce the availability of credit in the market. The money supply curve will shift to the left. This would further cause the interest rate to increase.

This increase in the interest rate would increase the cost of borrowing. As a result, the cost of borrowing will increase. This will cause the planned investment to decline.

Since investment expenditure is a component of aggregate demand, a decline in the investment will cause the aggregate demand to decrease as well.

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Answer:

Representative democracy.

Explanation:

Representative democracy refers to a system where the people govern through the election of parties or representatives with decision-making rights. Representative democracy can also be seen as a collective term for a number of democratic models. Common to these, however, is that the core consists of regularly recurring elections between competing representatives. People's sovereignty is achieved by the citizens influencing the government by voting in these elections. It is by far the most widespread method of exercising authoritative and legitimate control, demanding responsibility and developing debate in modern democracies.

5 0
2 years ago
A c corporation earns $9.50 per share before taxes. the corporate tax rate is 39%, the personal tax rate on dividends is 10%, an
Viktor [21]

The total amount of taxes that the company will pay will be calculated as under -

Total taxes paid = (Taxes on income) + (Taxes on dividends)

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5 0
3 years ago
Phildell Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax rate f
AysviL [449]

Answer:

Total deduction                               2,443.21

Explanation:

8,288

x 6.20% Sccial Security                      513.856

x 1.45% Medicate                                120.176

x 6.20% FUTA&SUTA  (for 7,000)       434              

Income tax witheld                           1,375.17

Total deduction                               2,443.21

We will multiply his taxable wages for period by the tax rate.

We must noticew FUTA and SUTA applies fdor the first 7,000 only so we multiply by 7,000 not by 8,288

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Explanation:

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