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barxatty [35]
3 years ago
8

When banks make loans, they put more money into the economy. This increases the _____.

Business
1 answer:
Leno4ka [110]3 years ago
6 0
When banks make loans, they put more money into the economy. This increases the money supply.

Is important to understand that the banks are the intermediares between the Federal Reserve (as the monetary authority) and the economic agents (people like you and me, and the companies). When they make loans there's more money flowing, the credit rises and the interest rates go down (more supply, the lower the price).
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Demand for a good is said to be inelastic if the quantity demanded increases substantially when the price falls by a large amoun
g100num [7]

Answer:

This is a false statement.

Explanation:

Price has certain effect on the demand of a product.

An increase in price may lead to higher demand while an decrease in price may lead to lower demand.

The increase or decrease in demand following the fall or rise in price varying amount different products.

Product demand is said to be elastic when a change in price has relatively big effect in the demand while it is said to be inelastic when a change in price lead to little change in demand of a product.

As a result, the statement quote in the question is false. Demand for a good should be said to be elastic instead given the quantity demanded increases substantially when the price falls by a large amount.

7 0
4 years ago
What is a major disadvantige of a centrally planned economy
cupoosta [38]

Answer:

Lack of competition

Explanation:

A centrally planned economy lack competitiveness. The government decides what to produce, the price, and the distribution channel. Because of these restrictions, there is no motivation for profits. Without competition, a centrally planned economy will have the following features.

  1. There be a lot of inefficiency and wastefulness.
  2. Consumers will not have a variety of goods and services to choose from in the markets.
  3. Businesses will make low profits.
6 0
3 years ago
A group of businesspeople meet in order to solve the problem of decreased sales of their company's products. One of them suggest
san4es73 [151]

Answer:

Brainstorming

Explanation:

Brainstorming is problem solving technique in which people of diverse skill gather together and discusses together the problem to collectively design best possible solution.  

In brainstorming following steps are followed

• Each one come up with their ideas and solution

• All ideas and solution are accepted and not criticized.

• Best possible ideas are selected out of them

• They are modified by refining and combining them

• Finally best alternative solution is unanimously selected by all

Brain storming is done to  

• Generate sense of collective responsibility and accountability

• Encourage creativity and design thinking

• Foster unity and group learning

Since in the problem statement all the step of brainstorming is being followed like meeting of group of people, coming up with different ideas .

Answer should be brainstorming

7 0
4 years ago
The secretary of state publishes the ________, which is the source of official notices or rules, meetings, executive orders, and
valkas [14]

Answer:

texas register                            

Explanation:

The Texas Register, distributed regularly, reports state agency policy creating and enforcement acts, assignments of governors, secretary of state decisions, legislation requests, and other sundry records.

Formed via a collaboration with the Secretary of State's Department of Texas, Texas Register Page, this collection offers free exposure for all Texas Register problems from Title 1, No. 1 (January 6, 1976). Towards the moment.The Texas Register's latest specific problem is first listed on a Texas Register Website, whereby they keep access to that of the Texas Register's very recent six (6) months problems.

5 0
3 years ago
Firms often seek to borrow money to expand their capital stock, and the price they pay for the money is the interest rate. What
True [87]

Answer:

When interest rate rises, the quantity of money demanded reduces

Explanation:

As interest rate increases firms seeking to borrow money for capital stock expansion are likely not going to go ahead with it. The reason is simply because, interest rate and money demanded have an inverse relationship. As interest rate rises money demanded falls because it means that for any amount of money borrowed the interest rate attached to it is higher making the cost of borrowing heavier on the borrower.

8 0
3 years ago
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