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denpristay [2]
3 years ago
11

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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The proper mode of acceptance of an offer up and until the offer has been accepted is established by:_____
nlexa [21]

Answer:

b. the offeror.

Explanation:

The offeror is the person who offers something while the offeree is the person who accept the offer provided by the offeror

Now in the case of acceptance, the proper mode of offer up and the till the offer would be accepted is created by the offeror as without offering the offer could not accepted

Therefore as per the given situation, the option b is correct

6 0
3 years ago
Mary Stahley invested $1500 in a 48-month certificate of deposit (CD) that earned 6.5% annual simple interest. When the CD matur
ASHA 777 [7]

Answer:

$12714.98

Explanation:

Data provided in the question:

Initial amount invested = $1,500

Simple interest rate = 6.5%

Duration for simple interest = 48 months = 4 years

Now,

Simple interest = Amount × Interest rate × Time

= $1,500 × 0.065 × 4

= $390

Therefore,

Total amount = $1500 + $390

= $1890

Now

The amount = $1890 is invested in mutual fund which is compounded annually at 21% for 10 years

thus,

Final amount = Principle × (1 + r)ⁿ

here, r = 21% = 0.21

n = 10 years

Therefore,

Final amount = $1890 × (1 + 0.21)¹⁰

= $12714.98

5 0
2 years ago
Consider the wealth effect, interest rate effect, and international trade effect. Of these, the ________ effect is the most sign
Grace [21]

Consider the wealth effect, interest rate effect, and international trade effect. Of these, the wealth effect is the most significant and the international effect is the least significant.

<h3>What is the wealth effect?</h3>

This is the theory that states that people spend more money on commodities as they experience an increase in their wages.

<h3>What is the international effect?</h3>

This is the theory that the given differences that exist in nominal interest rate of countries is useful for prediction of changes in interest rate.

Read more on wealth effect here; brainly.com/question/26960365

3 0
2 years ago
From the following list of selected items taken from the records of Bobcat Appliance Service as of a specific date, identify tho
Gennadij [26K]

Answer:

Balance sheet:

Accounts receivable

Cash

Common stock

Land

Supplies

Wages payable

Income statement:

Fees earned

Supplies expense

Utilities expense

Wages expense

Explanation:

Accounts receivable, cash, land, and supplies are assets while wages payable is a liability while common stock is owner's equity, all of which are balance sheet items.

Besides, fees earned are a revenue item while utilities , suplplies  and wages expenses would appear in the income statement.

7 0
3 years ago
When a bond issued at face value is retired what is the journal entry
Vedmedyk [2.9K]
Credit the "bond payable" liability account for the total face value of the bonds and debit cash for the same amount.


8 0
3 years ago
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