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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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A scientist discovers a chemical in certain rocks that kills bacteria when it is mixed with sterile water in a test tube. She ca

Keith_Richards [23]

Answer:

A scientist discovers a chemical in certain rocks that kills bacteria when it is mixed with sterile water in a test tube. She cannot market extracts that contain this chemical as a dietary supplement, because it does not contain dietary ingredients.

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3 years ago

The following information pertains to Guillotine Corporation: Beginning inventory 1,000 units Ending inventory 6,000 units Direc

kotykmax [81]

Answer:

Value of the ending inventory=$600,000

Option A is correct ($600,000)

Explanation:

Given Data:

Ending inventory=6,000 units

Direct labor per unit =$40

Direct materials per unit=$20

Variable overhead per unit =$10

Fixed overhead per unit=$30

Required:

Value of the ending inventory=?

Solution:

Value of the ending inventory=(Direct labor per unit+Direct materials per unit+Variable overhead per unit + Fixed overhead per unit)*Ending inventory

Value of the ending inventory=($40+$20+$10+$30)*6000

Value of the ending inventory=$100*6000

Value of the ending inventory=$600,000

Option A is correct ($600,000)

6 0

4 years ago

An aggregate production function shows ________. A. the relationship between a country's output and its price level B. various

Maru [420]

Answer:

The correct answer is letter "C": the relationship between a country's GDP and its factors of production.

Explanation:

The Aggregate Production Function describes the relationship between a country's Gross Domestic Product (GDP) and the factors of production involved in it. Aggregate Production functions are considered physical and human capital, labor, knowledge, social infrastructure, and natural resources. Production increases as a result of increases in capital, natural resources, and labor.

3 0

3 years ago

Which of the following is NOT a reason why an investor would choose to invest in new and growing firms as a limited partner in a

marshall27 [118]

Answer:

c. The investor will have a direct say in how the companies that the venture capital firm funds will be run

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3 years ago

Read 2 more answers

"For the next three questions, assume there is $20 per unit tax levied on the consumers of guitars. What price will buyers pay a

zloy xaker [14]

Answer:

The consumer will pay $200 after the tax is imposed.

Explanation:

if the tax of $20 per unit is levied on the consumers of guitars, thenthe demand: P = 300 - 0.5*Q

180 + 20 = 300 - 0.5*Q

Therefore, The consumer will pay $200 after the tax is imposed.

5 0

4 years ago