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4 years ago

When the price level decreases:

Business

1 answer:

Stells [14]4 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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calculate how much credit created by commercial bank when there is a deposit of 80000, reserve requirement is 8% and withdrawl i

Scrat [10]

Answer:

Amount of credit created by commercial bank = 47,840

Explanation:

Given:

Total deposit in bank = 80,000

Reserve requirement = 8%

Withdrawal = 35%

Find:

Amount of credit created by commercial bank

Computation:

Amount available for withdrawal = Total deposit in bank[1 - Reserve requirement]

Amount available for withdrawal = [80,000][1-8%]

Amount available for withdrawal = 73,600

Amount of withdrawal = Amount available for withdrawal[35%]

Amount of withdrawal = 73,600[35%]

Amount of withdrawal = 25,760

Amount of credit created by commercial bank = 73,600 - 25,760

Amount of credit created by commercial bank = 47,840

6 0

3 years ago

Explain the reasons why more efficient keyboards were not able to replace the QWERTY keyboard and what principle this illustrate

ELEN [110]

Answer:

so that people don type to fast again like the 20th centruy people

Explanation:

3 0

3 years ago

How does having a menu that is uniform around the country provide mcdonald's with economies of scale? how is menu planning made

slega [8]

Yes, a uniform menu allows for centralized planning and distribution without having to many different factories/suppliers.

Menu:

If the food menu is consistent, it can be said that economies of scale would be in effect. This is due to the fact that the fixed cost per unit actually gets to decrease, which then leads to a decrease in the average cost of production per unit as the sales volume keeps on increasing, giving the company a cost advantage and resulting in economies of scale. However, when extending to other nations, the menu planning becomes more difficult because local preferences and cultural norms vary widely. For example, beef is not allowed in India, thus the menu must be designed accordingly.
McDonald's benefits from economies of scale since customers can place larger orders to reduce the price of their food when there is a standard menu across the nation. The more of a good is produced, the lower the per-unit fixed cost is since these expenses are spread across a larger number of goods, according to Investopedia. Additionally, everywhere you travel in the nation, people are aware of what is on their menu.

Learn more about menu here brainly.com/question/24068570

#SPJ4

6 0

1 year ago

How do cellphone companies promote their product?

lord [1]

Answer:

they promote there company by advertising the product making commercial

7 0

3 years ago

Read 2 more answers

PLEASE HELP ME

Gnom [1K]

Answer:

I hope it helps, sry if it doesn't!

I don't rly know how to explain it tho

Explanation:

6 0

3 years ago