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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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Nonamiya [84]

Answer:

The correct option is D, cannot be determined from information provided

Explanation:

The cash used(provided) by financing activities is the difference between the cash provided by financing activities of $84,400 and the amount of dividends paid to stockholders which is $128,500.=$44,100.

The amount calculated above is not one of the options available, hence it is very safe to say that the correct option is that cash provided(used) by financing activities cannot be determined from the information provided.

6 0
3 years ago
The income statement of Kimbrough Community Clinic for the year ended December 31, 2017, is provided below.
mixer [17]

Answer:

0.47

Explanation:

Debt service coverage ratio = Net Operating Income ÷ Total Debt Service

where,

Net Operating Income = Revenue - Certain Operating Expenses

Total Debt Service = Current Debt Obligations

therefore,

debt service coverage ratio = $32,000 ÷ $68,000 = 0.47

5 0
3 years ago
The rdas are designed to cover the needs of ______% of the population
blondinia [14]
The answer to this is:
97%
4 0
3 years ago
Greg is the CEO of a leading company in the consumer packaged goods industry. He is trying to grow his company for personal gain
Lilit [14]

Answer: Over-diversification

Explanation:

 According to the given question, the Over-diversification is one of the concept in the business in which the an organization make a large number of investment of the different types of asset where the expectation of the marginal cost become high.

Greg is one of the leading company CEO and for the growth of the company he has decided for acquiring some small chemical firms for increase the productivity but the shareholder are not happy with this due to the over-diversification concept.

The over-diversification also increase the risk in the investment process but there is always high possibility of marginal benefit in the business. Therefore, Over-diversification is the correct answer.  

 

3 0
4 years ago
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laiz [17]
Qualities you have for this position.
6 0
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