Answer:
Money supply increases causing the interest rate to decrease. investment spending will increase and the AD curve will shift to the right. price level however does not change.
Explanation:
Because the AS curve is horizontal there is a liquidity trap. During a liquidity trap, monetary policy is MOST EFFECTIVE. When money supply increases it causes an excess of money in the economy causing a drop(decrease) in the interest rate. The subsequent drop in the interest rate causes people to increase investment, which causes investment spending to rise(increase). This increase in investment spending causing the Aggregate Demand(AD) curve to move right. The price level does not change because the AS curve is horizontal and pegged at a given price level. So no matter the Demand the supply will only be at that constant price.
It is False
Book value is the net worth of a company's resources found on its monetary record, and it is generally equivalent to the aggregate sum all investors would get in the event that they sold the organization. Market value is the organization's worth in view of the all out worth of its exceptional offers on the lookout, which is its market capitalization.
<h3>What's the Difference Book value and Market value?</h3>
Despite the fact that financial backers have numerous measurements for deciding the valuation of an organization's stock, two of the most usually utilized are book worth and market esteem. The two valuations can be useful in working out whether a stock is genuinely esteemed, exaggerated, or underestimated. In this article, we'll dive into the distinctions between the two and how they are utilized by financial backers and examiners.
- An organization's book esteem is how much cash investors would get in the event that resources were exchanged and liabilities paid off.
- The market esteem is the worth of an organization as indicated by the business sectors in view of the ongoing stock cost and the quantity of exceptional offers.
- At the point when the market esteem is not as much as book esteem, the market doesn't completely accept that the organization merits the worth on its books.
- A higher market esteem than book esteem implies the market is relegating a high worth to the organization because of expected income increments.
- While utilizing book worth and market worth to think about organizations in contrast to one another, looking at organizations inside a similar industry is significant.
To learn more about Book value and market value from the given link
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No, Pam will not succeed.
<u>Explanation:</u>
Pam will not succeed in the case in which she had sued the lottery office for claiming her lottery money which she had won. The reason for this is that she had lottery ticket.
And the rules of the contract of the lottery say that the ticket of the lottery must be shown if the amount of the lottery has to be claimed by the winner. Since Pam had accepted that rule when she had entered in to the contract, so now she has no right to sue the lottery office.
Matters where you live. it is different in different places.