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Oxana [17]
3 years ago
6

Some analysts use the short-run and long-run effects on the aggregate demand–aggregate supply model to argue that expansionary m

onetary policy can’t affect employment in the long run because in the short-run monetary policy shifts the aggregate:
a. supply curve to the left, but over time the increase in prices shifts aggregate demand to the right so that GDP will end up going back to its same level of output with a higher price level.
b. demand curve to the left, but over time the increase in prices shifts aggregate supply to the right so that GDP will end up going back to its same level of output with a higher price level.
c. supply curve to the right, but over time the increase in prices shifts aggregate demand to the left so that GDP will end up going back to its same level of output with a higher price level.
d. demand curve to the right, but over time the increase in prices shifts aggregate supply to the left so that GDP will end up going back to its same level of output with a higher price level.
Business
1 answer:
leva [86]3 years ago
7 0

Answer:

D.)demand curve to the right, but over time the increase in prices shifts aggregate supply to the left so that GDP will end up going back to its same level of output with a higher price level.

Expansionary monetary policy increases money supply in the economy and thus aggregate demand increases leading to shift in demand curve to right.

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Answer:

C) common stockholders, but after that of bondholders.

Explanation:

Preferred stockholders hold a claim on assets that has priority over the claims of common stockholders but after that of bondholders.  

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Money allows this relationship to work.

3 0
3 years ago
Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to gro
aleksandrvk [35]

Answer:            ke = D1/Po + g

                 0.1025 = D1/57.50 + 0.06

        0.1025-0.06 = D1/57.50

            0.0425     = D1/57.50

                      D1    = 0.0425 x 57.50

                      D1    = $2.444

           

Explanation: Cost of equity is equal to dividend in 1 year's time divided by the current market price plus the growth rate. Other variables were provided in the question except the dividend at the end of the year (D1).

Thus, D1 becomes the subject of the formula. The appropriate cost of equity is $2.44. The correct answer is B.

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