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Romashka-Z-Leto [24]
4 years ago
10

A surplus or shortage in the money market is eliminated by adjustments in the price level according to a. classical theory, but

not liquidity preference theory. b. neither liquidity preference theory nor classical theory. c. liquidity preference theory, but not classical theory. d. both liquidity preference theory and classical theory.
Business
1 answer:
Mila [183]4 years ago
7 0

Answer:

The correct answer is option a.

Explanation:

According to the classical economists, in the money market the equilibrium is achieved by the intersection of demand for money and supply of money curves. The supply of money is constant. They believed that money was demanded to make transactions. The amount of money needed then would depend on the value of transactions. They believed that there is a direct relationship between money supply and price level.

The liquidity preference theory however stated that money is used for transactionary, precautionary and speculative motives. And the money supply is not directly related with the price level. Interest rate also effects the demand and supply of money.

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Recall the educational and other requirements for Geographers. What are some requirements that would be helpful to
Leviafan [203]

Answer:

master’s degree and GISP certification

communication skills, including reading, writing, listening, and speaking

analytical and critical-thinking skills

computer skills

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3 years ago
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Which of the following best describes the journal entry to record the withdrawal of raw materials from the storeroom for use as
Alborosie
D. Debit work in process debit manufacturing overhead …..
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3 years ago
Suppose the price of gasoline decreases from $4.20 to $2.00, and in response quantity demanded increases from 10600 to 11200. Us
Tems11 [23]

Answer:

0.079

Explanation:

Price elasticity of demand using midpoint formula can be calculated as follows

Formula

Elasticity of demand = (change in quantity/average quantity)/(change in price/average price)

Calculation

Elasticity of demand = (600/10,900)/(-2.1/3.05)

Elasticity of demand =-0.055 / -0.688

Elasticity of demand =-0.079

working

Change in price (2-4.1) = -2.1  

Average price (2+4.1)/2=3.05

Change in quantity (11,200-10600) = 600

average quantity (11,200+10,600)/2 = 10,900

 

The elasticity of demand is inelastic as the elasticity is below 1.

4 0
3 years ago
Dorothy Taylor has won a state lottery and will receive a payment of $93,000 every year, starting today, for the next 20 years.
Firlakuza [10]

Answer: The answer is $1,092,865.5426

To the nearest whole dollar, we have:

$1,092,866

Explanation: from the question above, we will be calculating the present value of a cashflow of $93,000 over a period of 20 years, at a rate of 5.76%.

We will be performing a discounting operation.

Refer to the attached files below to see the calculations and how we arrived at the answer above.

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4 years ago
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the common stock and debt of northern sludge are valued at $64 million and $36 million, respectively. investors currently requir
kozerog [31]

The expected return on the common stock should decrease.

To calculate the new expected return on the common stock, we need to calculate the new value of the common stock and debt. The new value of the common stock is $64 million + $16 million = $80 million. The value of the debt is reduced by $16 million to $20 million.

The new expected return on the common stock is 16.6% * ($80 million/$96 million) = 15.63%.

Therefore, the expected return on the common stock should decrease from 16.6% to 15.63%.

A security that symbolises ownership in a firm is called common stock. Common stock owners choose the board of directors and cast ballots for corporate rules. Long-term rates of return are often higher with this type of stock ownership.

To know more about stock here

brainly.com/question/14040903

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4 0
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