1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
AJ's Markets is being liquidated. The mortgage holder is owed $830,000, the other secured creditors are owed $128,000, and the u
oksano4ka [1.4K]

Answer:

B. $.025

Explanation:

Calculation to determine How much will the unsecured creditors receive per each dollar they are owed

First step is to determine the Mortgage unsecured

Mortgage unsecured = $830,000 -$794,000

Mortgage unsecured= $36,000

Second step is to calculate the Funds available after expenses

Funds available after expenses = $467,000 - $330,000

Funds available after expenses = $137,000

Third step is to calculate the Funds available after secured claims

Funds available after secured claims = $137,000 - $128,000

Funds available after secured claims= $9,000

Fourth step is to calculate the Total unsecured claims

Total unsecured claims = $36,000 + $329,000 Total unsecured claims = $365,000

Now let determine Percent unsecured claims paid

Percent unsecured claims paid = $9,000 / $365,000

Percent unsecured claims paid= .025*100

Percent unsecured claims paid=2.5%

Therefore the amount of that the unsecured creditors receive per each dollar they are owed will be $.025

7 0
2 years ago
As the marginal propensity to consume (MPC) increases, the spending multiplier: Increases, decreases, stays the sameIf the margi
Sati [7]

Answer:

(a) As the marginal propensity to consume (MPC) increases, the spending multiplier Increases.

(b) Multiplier is 3.30.

(c) Total impact on spending is $3,300.

Explanation:

(a) As the marginal propensity to consume (MPC) increases, the spending multiplier: Increases, decreases, stays the same.

In economics, the higher the MPC, the higher the spending multiplier.

Therefore, as the marginal propensity to consume (MPC) increases, the spending multiplier Increases.

(b) If the marginal propensity to consume is 0.70, then, assuming there are no taxes or imports, the multiplier is: (Note: round to the nearest tenth).

This can be calculated as follows:

Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.70) = 1 / 0.30 = 3.33333333333333

Rounding to the nearest tenth, we have:

Multiplier = 3.30

(c) Given the multiplier that you calculated, what is the total impact on spending when there is a $1,000 increase in government spending?

Total impact on spending = Increase in government spending * Multiplier = $1,000 * 3.30 = $3,300

3 0
3 years ago
If a monopolist increases sales from 100 to 101 units of output by lowering its price from $4.00 to $3.99, its marginal revenue
Goshia [24]

Answer:

Marginal revenue is $2.99

Explanation:

A monopoly is defined as a situation where a single supplier determines the price and amount of a good that will be supplied.

Marginal revenue is defined as the additional revenue that is earned from increased unit of sale of a product.

The initial revenue earned is 100 units* $4= $400.

The present revenue is 101 units* $3.99= $402.99

Therefore the additional revenue is 402.99-400= $2.99

8 0
3 years ago
Read 2 more answers
The best gift i ever received​
Nadusha1986 [10]

Answer:

The best gift I ever received is none other than my parents, given to me by God on my birthday. Nowadays, not every child is fortunate enough to have both parents to nurture them. As for me, I am lucky to be raised by two loving parents. They provide shelter and care so that we can live comfortably.

Explanation:

this is the correct answer you want

please follow me ☺️

8 0
3 years ago
Read 2 more answers
Why do you think it is important to understand the legal and ethical issues in photography?
Readme [11.4K]

It is important to understand the legal and ehtical issues in photography because you are taking photos of families, friends, children and ost of the time, you have no relation to them. Most photographers will develope a contract that outlines what the photographers rights that they have with the photos and likewise for the customer. It is important to understand who's property they are and how the rights to the photos are distriputed so that there is no sueing over misuse of photos.

8 0
3 years ago
Read 2 more answers
Other questions:
  • The profit that the vendor makes per day by selling x pretzels is given by the function. P(x) = -0.002x2 + 1.4x - 400. Find the
    14·1 answer
  • Anticipating the outcome of a peg, economists believe the stable condition is a situation in which combinations of investor beli
    14·1 answer
  • All of the following cost would be found on a company’s accounting records except
    11·1 answer
  • Who first postulated the existence of the electron?
    9·1 answer
  • It is important that the objectives established by executives for their company must be _____, or else employees will not focus
    6·1 answer
  • Assessment
    10·1 answer
  • What amount should Dunbarn report as cash provided (used) by investing activities in its statement of cash flows for the year
    7·1 answer
  • O’Brien Brewery and Delgado Vintage Wines both decided to write off a specific customer’s uncollectible account as a bad debt ex
    7·1 answer
  • Multiple Choice
    7·1 answer
  • Are u gonna do it?<br> do it please
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!