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3 years ago

When the price level decreases:

Business

1 answer:

Stells [14]3 years ago

6 0

Answer:

A. The demand for money falls and the interest rate falls

Explanation:

As in general sense when the price level falls it means that the goods will cost less than the earlier stated cost. As the cost will fall the value of money will increase in terms of goods.

Accordingly an individual can buy more goods with same amount of money. This will reduce the demand for money in the market.

Ultimately people will not borrow money and that the demand for loans will fall. Accordingly as banks earn through interest income on loans they will be ready to lend at a lower rate of interest.

Thus, option A is correct.

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You want to buy an Audi A8 7 years from now. You have priced these cars and found that they currently sell for $83,800. You beli

lana [24]

Answer:

We to invest $ 17,213 per year to buy the car in seven years from now

Explanation:

First, we solve for the future value of the car:

$Principal \: (1+ r)^{time} = Amount$

Principal 83,800.00

time 7.00

rate 0.10000

$83800 \: (1+ 0.1)^{7} = Amount$

Amount 163,302.49

Then, for the PTM to achieve tham amount in 7 years:

$FV \div \frac{(1+r)^{time} -1}{rate} = C\\$

FV 163,302

time 7

rate 0.1

$163302.49298 \div \frac{(1+0.1)^{7} -1 }{0.1} = C\\$

C $ 17,212.981

8 0

3 years ago

If interest rate parity holds and the annual Taiwan nominal interest rate is 7% and the US. annual nominal rate is 5% and real i

Sati [7]

Answer:

2% higher

Explanation:

Nominal rate = real rate + inflation

In the U.S:

$5\%=2\%+inflation\\inflation = 3\%$

In Taiwan:

$7\%=2\%+inflation\\inflation = 5\%$

The difference between inflations is:

$I_T - I_{US} = 5\%-3\% = 2\%$

Therefore, then inflation in Taiwan is about 2% higher than in the U.S.

7 0

3 years ago

In early economic history money was not always available and transactions occurred through ____________ which was often very dif

Yuri [45]

Trade
-----------------

7 0

3 years ago

An electronic card that serves as an interface to an ATM is known as a ____.

Leviafan [203]

Answer:

D. debit card

Explanation:

A debit card is an electronic card that enables customers to access their bank accounts via an ATM. An ATM ( Automated Teller Machine) is a banking outlet that allows customers to perform basic banking services such as deposits, withdrawals, transfers, and balance inquiries without stepping into the banking hall.

A customer needs to have their debit card and the PIN to access their bank account via the ATM.

6 0

3 years ago

hich scenario is an example of an industry in monopolistic competition? Sprint, AT&T, Verizon, and T-Mobile own a large port

Anton [14]

Answer:

Within walking distance from your home, there are a plethora of fast-food restaurants including Koala Express, Cabo Bob's Burritos, Oodles of Noodles, and Hanz's Hearty Hamburgers.

Explanation:

Monopolistic competition refers to a market where there are a large of suppliers that offer differentiated products to a large number of consumers. The restaurant industry are the most common example of monopolistic competition.

The other options are wrong:

Sprint, AT&T, Verizon, and T-Mobile own a large portion of the U.S. cellular market share. OLIGOPOLISTIC MARKET (FEW SUPPLIERS AND MANY CONSUMERS)

Farmers grow navel oranges throughout the United States. PERFECT COMPETITION (MANY SUPPLIERS AND MANY CONSUMERS THAT SUPPLY SIMILAR PRODUCTS)

The local gas company owns all of the gas lines that supply natural gas and heating to the residents in the town of Madison, Wisconsin. MONOPOLY, ONLY ONE SUPPLIER AND MANY CONSUMERS

6 0

3 years ago