If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, the interest rate will rise, causing households and businesses to hold less money.
Option A
<u>Explanation:
</u>
Fiscal policy is the central bank's macroeconomic policy. This covers the supply of money and interest rate control and is also the demand-side economic strategy of a country's government for achieving macroeconomic targets such as inflation, investment, productivity, and liquidity.
If the required quantity is above the amount given, people sell the property to obtain money like bonds. It leads to an increase in bond supply, a drop in bond prices and a higher market interest rate. If the volume supplied meets the necessary number, capital is increasing by purchasing a certain property, such as bonds.
The supply of money meets the demand for money, and the real rate of interest is higher than the number of equilibrium.
Answer:
The cost of equity is 9.91%
Explanation:
The constant growth model of the DDM is used to calculate the price of the share or the fair value per share based on a constant growth in dividends and the required rate of return which is also known as cost of equity.
Plugging in the available values in the formual we can calculate the cost of equity or the required rate of return.
73.59 = 4.57 / (r - 0.037)
73.59 * (r - 0.037) = 4.57
73.59r - 2.72283 = 4.57
73.59r = 4.57 + 2.72283
r = 7.29283 / 73.59
r = 0.0991 or 9.91%
Any contractual arrangement between governments addressing their trading interactions is referred to as a trade agreement. Trade treaties can be bilateral or multilateral, that is, among two or more states.
<h3>Why are trade agreements important?</h3>
Countries engage in international trade because there are financial benefits to be had. These benefits include expanded product diversity, cheaper pricing, superior quality, enhanced technological spread, and increased consumption by the country as a whole. Increased trade openness has been associated with higher GDP growth.
Thus Option C is correct about the trade agreement.
For more information about the Trade agreement refer to the link:
brainly.com/question/1550074
