1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Joslyn completed the lease term on her car and decided to turn the car in instead of purchasing it. upon inspection, the dealers
Fed [463]
Its the Lease Penalty
6 0
3 years ago
Read 2 more answers
If a display rack was purchased for the store, which account would be increased
Nezavi [6.7K]
Store equipment will increase
7 0
3 years ago
Stuart is in charge of Up The Hill Bakery's twitter account. His job is to post updates on events and sales at the bakery and to
ValentinkaMS [17]

Answer:

True

Explanation:

The salary is paid to employees which means that the benefits that the employee receives by delivering its services is labor cost to the company. The company pays its employees to receive the desired services that the employee is willing to deliver its employer.

3 0
3 years ago
How have ATMs evolved since then? Have you used one? Explain.
olga2289 [7]
<h2>The following points describe how have ATMs evolved since their first setup: </h2>

  • The very first ATM that came out in 1967 functioned with paper printed on with radioactive ink that the machine could read to process the information.
  • The more popular type of ATMs came out two years later in 1969 and were disseminated throughout the United States over the next decade.
  • The new ATMs used plastic cards similar to the cards that we use today.
  • Both the types of cards and the interface of the ATMs changed with time.
8 0
3 years ago
Read 2 more answers
To whom should your family talk about enrolling in a 529 plan or a Coverdell Education Savings Account?
strojnjashka [21]
Financial planner will be able to go over the benefits and restrictions of a 529
6 0
3 years ago
Read 2 more answers
Other questions:
  • What is the safest way to avoid a sale to a minor?
    8·1 answer
  • You are the brand manager for a new line of ready-to-drink coffee line from Pepsi cola. Which opinion leaders or reference group
    7·1 answer
  • Stephen is preparing his pitch for a bank representative that will be considering him for a business loan. He lists the resumes
    7·1 answer
  • Supplies on hand at October 31 total $500. Expired insurance for the month is $100. Depreciation for the month is $50. Services
    6·1 answer
  • Holly deposited $7,000 in a CD and will get charged penalties if she makes withdrawals within five years. However, she will need
    15·2 answers
  • Turk Manufacturing uses the net present value method to make the decision, and it requires a 15% annual return on its investment
    7·1 answer
  • 14 Select the correct answer. Which marketing strategy is the most effective in the modern era? O A relationship marketing B. ma
    8·1 answer
  • Which of the following is an example of foreign direct investment?
    11·1 answer
  • On June 5, Staley Electronics purchases 100 units of inventory on account for $10 each. After closer examination, Staley determi
    13·1 answer
  • The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses:
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!