Answer:
Decrease the money supply from $120 to $100
Explanation:
If the monetary authorities reduces aggregate demand from AD3 to AD2, money supply decreases from $120 to $100. This decrease will cause a decrease in consumer spending. There will be a reduction of price levels and real output.
This is also called contractionary monetary policy and it causes interest rate to be higher there by reducing investments.
Based on the above, The firm that is guaranteed to come out ahead is Dudek will come out ahead, because if the stock does not increase in price, he can simply let the call option expire.
<h3>What do you mean by stock?</h3>
A stock is a known to be a term that is known to be used to tell about the ownership certificates of any firm.
Note that Based on the above, The firm that is guaranteed to come out ahead is Dudek will come out ahead, because if the stock does not increase in price, he can simply let the call option expire.
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Question 16 of 27 ABC Corp. stock has been holding at $22.50 for a few months. Stockholder Nguyen is willing to sell call options at $23. Investor Dudek buys the call options. Who is guaranteed to come out ahead? Select an answer Nguyen will come out ahead, because he will receive a premium for each share for which Dudek places a call option. Nguyen will come out ahead, because he is protected by Dudek's call option from ABC stock falling in price. Dudek will come out ahead, because if the stock does not increase in price, he can simply let the call option expire. Dudek will come out ahead, because stocks will always rise in price and after he buys the stock, he can sell for an even higher price Previous
Inflation is the rate at which the general level of prices for goods and services is rising and consequently the purchasing power of currency is falling. The rise or the fall of price determines the inflation rate in a given economy and therefore also determines the purchasing power by consumers. When prices goes up then there is a decrease in purchasing power of money while when the prices down there is a corresponding increase in purchasing power of money. For this reason central banks strives to limit inflation, and avoid deflation, in order to keep the economy smoothly running.
Answer:
D. $25,000
Explanation:
The equity is the difference between assets and liabilities
Opening equity=$150,000-$70,000
opening equity=$80,000
Ending equity=$180,000-$80,000
ending equity=$100,000
The ending equity formula below can be used to derive the net income for 2016:
ending equity=beginning equity+ net income-dividends
The net income increases the amount of ending equity while dividends decrease it.
net income=unknown
dividends=$5000
$100,000=$80,000+net income-$5000
net income=$100,000-$80,000+$5,000
net income=$25,000
The interest earned compounded annually at $80.14
$1000 x (1.07)^2=1144.90 after 2 years
1144.90 x 0.07 = 80.14
A technique of calculating and adding interest to funding or mortgage as soon as a year, in preference to for any other period: if you borrow $100,000 at five% hobby compounded annually, after the first yr you'll owe $five,250 on a principal of $a hundred and five,000.
It's far to be mentioned that the above-given system is the general components while the major is compounded n quantity of instances in a yr. If the given most important is compounded annually, the quantity after the term at percentage fee of interest, r, is given as A = P(1 + r/a hundred)t, and C.I. could be P(1 + r/100)t - P.
That stated, annual hobby is commonly at a higher rate because of compounding. in place of paying out monthly, the sum invested has twelve months of increase. But if you are able to get the equal price of interest for month-to-month payments, as you can for annual bills, then take it.
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