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lyudmila [28]
3 years ago
13

In​ Keynes's analysis of the speculative demand for​ money, what will happen to money demand if people suddenly decide that the

normal level of the interest rate has​ declined? Why?
A. Money demand will increase because people will want to borrow more money.
B. Money demand will stay the same because the speculative component of the demand for money is viewed as insensitive to interest rates.
C. Money demand will decrease because as interest rates​ fall, the price of bonds rises. The relative increase in the expected return on bonds makes money less attractive.
D. Money demand will increase because as interest rates​ fall, the price of bonds falls. The relative decrease in the expected return on bonds makes money more attractive.
Business
1 answer:
Serggg [28]3 years ago
4 0

Answer:

The correct answer is option C.

Explanation:

When the interest rate falls below the normal level, people expect the interest rates to rise in future and bond prices to fall. This causes investors to sell the bonds at present so that they can buy bonds when they are selling at lower prices in future as of result of an increase in interest rates. Money demand will, as a result, will decrease.

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On May 23, Stoltz Realty Inc. issued for cash 80,000 shares of no-par common stock (with a stated value of $3) at $12. On July 6
Slav-nsk [51]

Answer:

23rd May

Dr Cash                                                          960,000

Cr Common stock                                        240,000

Cr Paid-in Capital - Common Stock            720,000

( to record the issuance of 80,000 common shares for cash)

6th July

Dr Cash                           900,000

Cr Preferred stock          900,000

( to record the issuance of 18,000 preferred shares for cash)

15th September

Dr Cash                                                   750,000

Cr Common stock                                  150,000

Cr Paid-in capital - Common Stock       600,000

( to record the issuance of 50,000 common shares for cash)

Explanation:

Working notes for each transactions:

* 23rd May:

Cash increases by: Amount of stocks issued * Price at issuance = 80,000 * 12 = $960,000

Common stock account increases by: Amount of stock issued * Stated value = 80,000 * 3 = 240,000

Paid-in capital account increased by: Amount of stock issued * ( Price at issuance - Stated value) = 80,000 * 9 = $720,000

* 6th July:

Cash increases by: Amount of stocks issued * Price at issuance = 18,000 * 50 = $900,000

Preferred stock account increases by: Amount of stock issued * Par value = 18,000 * 50 = $900,000;

As shares are issued at par; no paid-in capital amount recorded.

* 15th September:

Cash increases by: Amount of stocks issued * Price at issuance = 50,000 * 15 = $750,000

Common stock account increases by: Amount of stock issued * Stated value = 50,000 * 3 = 150,000

Paid-in capital account increased by: Amount of stock issued * ( Price at issuance - Stated value) = 50,000 * 12 = $600,000.

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The minimum salary for a running back is $1.35 million per year. One of the Whalers' running backs was hurt during the last game
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Answer: 2

Explanation: $2.7 million divided by $1.35 million is 2.

8 0
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How does fractional reserve banking grow the economy?
Aleks [24]

Answer:

C. By allowing the same money to be both stored as a deposit and  loaned to businesses is the correct answer.

Explanation:

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2 years ago
Gambrinus is a large company that owns and operates the breweries that produce Moosehead Lager, Bridgeport Ale, Pete's Wicked Al
svlad2 [7]

Answer:

The answer is departmentalization by product.

Explanation:

Departmentalization refers to the divisions of different work areas. Each one specializes in a specific job, most companies use departmentalization and train their employees, making them specialists in their role.

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For example, in the case of departmentalization by-products, it is used by large companies to divide the area where the product is developed and those in charge of product delivery, thus obtaining better control, organization, and production.

<em>I hope this information can help you.</em>

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dezoksy [38]

Answer:

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Explanation:

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Latecomers represent 16% of consumers, are insecure to adopt new things, do not like to try new things and do not follow fads. Being traditionalists, they always perform the same way and only adopt innovation when there is no other alternative. Like Charles, who only bought the color TV because his old tv stopped working.

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3 years ago
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