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ollegr [7]
3 years ago
6

According to liquidity preference theory, a decrease in the price level causes the interest rate to:a. increase, which increases

the quantity of goods and services demanded. b. decrease, which increases the quantity of goods and services demanded. c. decrease, which decreases the quantity of goods and services demanded. d. increase, which decreases the quantity of goods and services demanded.
Business
1 answer:
mojhsa [17]3 years ago
4 0

Answer:

The correct answer is (B)

Explanation:

Liquidity preference theory emphasised on the interest which investors should demand on long-term investments due to the risk they carry. According to liquidity preference theory, a decrease in the price level shifts the money demand curve leftward. A leftward movement of the money demand curve increases the overall quantity demanded. In that regard, a decrease in interest rate increases the demand for goods and services demanded.

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Tatiana [17]

Answer:

a. x=\frac{1330-y}{15}

b. x=\frac{1330-655}{15}

x=\frac{655}{15} = 45

c. x=\frac{1330-610}{15}

x=\frac{720}{15} = 48

Explanation:

a.

using the point-slope form we have that:

y= mx + b

m being the slope which has the next equation:

y is the rent price

x is the units of the apartment complex rented

m=\frac{y1-y2}{x1-x2}

m=\frac{580-625}{50-47}=\frac{-45}{3} = -15

Now we find the Y intercept (b):

580=-15(50)+b

580=-750+b

b=580+750 = 1330

We have the equation:

y=-15x + 1330

Now we have tu put in terms of the rent p (y)

y=-15x + 1330

15x = 1330 - y

x=\frac{1330-y}{15}

b.

The first graph attached corresponds to the equation showed in point a.

The second graph attached corresponds to the equation if the rent is $655

Using the trace feature it is estimated that for a rent price of $655 the units occupied are 45.

x=\frac{1330-655}{15}

x=\frac{655}{15} = 45

c. The third graph attached corresponds to the equation if the rent is $610

Using the trace feature it is estimated that for a rent price of $610 the units occupied are 48.

x=\frac{1330-610}{15}

x=\frac{720}{15} = 48

6 0
3 years ago
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