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Explanation:
Price level stability necessitates intelligent management or regulation for money supply and interest rates.
Money supply alludes to how much money or cash coursing in an economy. The money supply is the aggregate sum of money present in an economy at a specific level.
The record of the absolute money supply is kept by the Central Bank of the country.
Interest rates is the sum a bank charges a borrower and is a level of the head - the sum credited. The financial cost on a credit it's regularly noted on a yearly premise known as the Annual Percentage Rate (APR).
To learn more about Money Supply.
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To learn more about Interest Rates.
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Answer:
18.29%
Explanation:
Return on Equity is the net profit available for equity/ Total equity value.
Total equity = Total assets - Total debt
= $90 million - $55 million = $35 million
Earnings for equity = Annual sales
net profit margin 4%
= $160 million
4% = 6.4 million
Therefore, return on equity = ![\frac{Net\ profit\ for\ equity}{Total\ value\ of\ equity}](https://tex.z-dn.net/?f=%5Cfrac%7BNet%5C%20profit%5C%20for%5C%20equity%7D%7BTotal%5C%20value%5C%20of%5C%20equity%7D)
= ![\frac{6.4\ million}{35\ million} \times 100 = 18.2857](https://tex.z-dn.net/?f=%5Cfrac%7B6.4%5C%20million%7D%7B35%5C%20million%7D%20%5Ctimes%20100%20%3D%2018.2857)
Therefore, ROE = 18.29%
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Answer: Point B
If the demand increases suddenly because of a non-price determinant of demand, equilibrium point will shift to point B. At point B, the demand for mangoes increased from 4000 to 5000 pounds, and the price increased as well, from $5 to $6.