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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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2 years ago

Mia kaminsky wants to attend riverside community college. she'll need to have $25,000 six years from today. mia is wondering wha

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2 years ago

Read 2 more answers

A in the expected future exchange rate ______ the demand for u.s. dollars. in the u.s. demand for imports _______ the demand for

KIM [24]

A in the expected future exchange rate increases the demand for u.s. dollars. in the u.s. demand for imports does not change the demand for u.s. dollars.

In economics, demand is the number of goods that consumers are willing to purchase at various prices in a particular location and during a particular period of time. [1] The relationship between price and quantity demanded is also called the demand curve. Demand for a particular item is a function of perceived need, price, perceived quality, convenience, available alternatives, disposable income, buyer preferences, and many other options.

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8 0

1 year ago

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses

Flauer [41]

Answer:

Required 1

Part a

Total Product cost = Variable manufacturing costs + Fixed manufacturing costs

where,

Variable manufacturing costs = ($84,000 + $42,500 + $21,000) ÷ 1,000 units = $147.50

Fixed manufacturing costs = $32,500 ÷ 1,000 units = $32.50

therefore,

Total Product cost = $147.50 + $32.50 = $180.00

Part b

Total period cost = variable non- manufacturing costs + fixed non-manufacturing costs

where,

variable non- manufacturing costs = $15,000 + $5,500 = $20,500

fixed non-manufacturing costs = $24,000 + $28,000 = $52,000

therefore,

Total period cost = $20,500 + $52,000 = $72,500

Required 2

Part a

total direct manufacturing cost = Direct Materials + Direct Labor + Direct (Variable) Manufacturing Overheads

therefore,

total direct manufacturing cost = $84,000 + $42,500 + $21,000 = $147,500

Part b

total indirect manufacturing cost = fixed manufacturing costs

therefore

total indirect manufacturing cost = $32,500

Required 3

Part a

total manufacturing cost = variable manufacturing cost + fixed manufacturing costs

therefore,

total manufacturing cost = $84,000 + $42,500 + $21,000 + $32,500 = $180,000

Part b

total non-manufacturing cost = variable non-manufacturing cost + fixed non-manufacturing cost

therefore,

total non-manufacturing cost = $20,500 + $52,000 = $72,500

Part c

total conversion cost = direct labor cost + manufacturing overheads

therefore,

total conversion cost = $42,500 + $21,000 + $32,500 = $96,000

prime cost = direct material + direct labor

therefore,

prime cost = $84,000 + $42,500 = $126,500

Required 4

Part a

total variable manufacturing cost = direct materials + direct labor + variable manufacturing costs

therefore,

total variable manufacturing cost = $84,000 + $42,500 + $21,000 = $147,500

Part b

total fixed cost = fixed manufacturing costs + fixed non-manufacturing costs

therefore,

total fixed cost = $32,500 + $52,000 = $84,500

Part c

variable cost per unit produced and sold = variable manufacturing cost + variable non-manufacturing

therefore,

variable cost per unit produced and sold = $147.50 + ($20,500 ÷ 1,000) = $168.00

Required 5

incremental manufacturing costs = variable manufacturing costs

therefore,

incremental manufacturing cost = ($84,000 + $42,500 + $21,000) ÷ 1,000 units = $147.50

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2 years ago

State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash fl

Ivanshal [37]

Answer:

Effect of Transaction on Cash Flows

Effects Amount

1. Cash Payment $239,000

2. Cash Receipt $252,000 (12000*$21)

3. Cash Receipt $91,400

4. Cash Payment $491,000

5. Cash Payment $86,000

6. Cash Receipt $188,100 (190,000*0.99)

7. Cash Payment $353,400 (6,200*$57)

8. Cash Payment $36,100 [1.90*(23,000-4,000)]

5 0

2 years ago