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sergeinik [125]
3 years ago
15

Consider the portfolio choice theory of money demand. how do you think the demand for money will be affected during a hyperinfla

tion​ (i.e., monthly inflation rates in excess of​ 50%)?
Business
2 answers:
IrinaK [193]3 years ago
8 0

Answer:

Explanation:

During inflation, it is generally known that the demand for a good exceeds its supply, or the demand for a good remains the same, whereas its supply is smothered.

Inflation growing at an accelerated rate is known as hyperinflation.

According to the portfolio choice theory of money demand, the demand for money is affected by inflation risk. Higher fluctuations in the real return of money would arise due to the hyperinflationary environment, this thereby causes the demand for money to decrease.

Instead of holding onto money, people would start investing in other assets, whose real returns are not adversely affected by hyperinflation.

AleksAgata [21]3 years ago
6 0

Answer:

The demand for money decreases sharply.

Explanation:

The portfolio choice and Keynes's theory of demand for money both proposes that as the returns expected on money falls, its demand also falls. When there is an increase in interest rate, it leads to a decrease in the expectation placed on returns on money thus leading to a decrease in demand for money.

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This is to avoid confusion among subordinates and to ensure that the authority of the boss is not diminish by the authority of another boss. 
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3 years ago
Populations of organisms that live in and interact in a particular are form ?
frozen [14]
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3 years ago
Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year
nekit [7.7K]

Answer:

Profit margin = 9.74%

Explanation:

We know,

Profit Margin = (Net income after tax/Net sales) x 100

Profit margin is a profitability ratio that measures the company's overall performance. It also show how company performs financially.

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Year 2,

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4 0
3 years ago
Linda visits her favorite clothing store and is disappointed to discover that the shirt she was hoping to purchase is out of sto
Julli [10]

Answer:

d. backorder

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8 0
3 years ago
During team meetings Amber Downing always notices that Rhoma Law tends to ask innumerable questions and suggest ideas at each di
ahrayia [7]

Answer: context

Explanation:

The factor that has most likely influenced Downing's perception of Law is context.

Context refers to the situation for the occurence of a event. It's vital to look at the circumstances that were present at the time of the behavior of a person when attempting to understand the person's behavior.

Assuming both of them were part of team meetings where almost all member gave their own suggestions, then Law would not have drawn as much attention from Downing.

6 0
3 years ago
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