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pav-90 [236]
3 years ago
15

According to liquidity preference theory, if the quantity of money demanded is greater than the quantity supplied, then the inte

rest rate will
a. increase and the quantity of money demanded will decrease.
b. increase and the quantity of money demanded will increase.
c. decrease and the quantity of money demanded will decrease.
d. decrease and the quantity of money demanded will increase.
Business
1 answer:
melisa1 [442]3 years ago
4 0

Answer:

The correct answer is option A.

Explanation:

Liquidity preference theory was given by J.M Keynes. He states that money is demanded by people because it holds certain liquidity.

There are various motives involved for which people prefer liquidity. These motive are precautionary, transactionary and speculative motives respectively.

When the demand for money is more than supply, it means there is excessive demand. This excess demand will lead to increase in the interest level. At higher interest, the quantity of money demanded will fall.

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tester [92]

Answer: INCREASE; DECREASE

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An unexpected decrease in price level will lead to a decrease in the output by producers and employment will drop accordingly. This tries to show how price determines change in supply and employment.

6 0
2 years ago
Suppose that Sheldon and Leonard can either run errands or wash dishes. The time it takes each of them to accomplish one of thes
MrMuchimi

Answer: Sheldon focuses or specialize on running errands and Leonard in washing dishes;

they trade at 1 errand run per 20 dishes washed

Explanation:

Sheldon focuses or specialize on running errands and Leonard in washing dishes; thus this the individual specialization

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2 years ago
Why are high-tax-bracket investors more inclined to invest in municipal bonds than are low-bracket investors?
Anika [276]

The coupons paid by municipal bonds are exempt from federal income tax and from state tax in many states. Therefore, the higher the tax bracket that the investor is in, the more valuable the tax-exempt feature to the investor.

4 0
3 years ago
Q5) which one company is the best one you wish to invest for next 3 decades, based on its management, product or business model,
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<h3>What is the management structure of Tesla?</h3>

According to management experts, Tesla is one company that has a practical organizational structure with a lot of hierarchical structure.

Tesla is a company that is reported to use functional centers that are well-structured and cover all aspect of their business operations, including finance, sales, marketing, and technology.

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5 0
1 year ago
Six years ago a commercial property owner paid $490,000 for her complex which included 10 acres of land valued at $100,000. Usin
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Answer:

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=9750

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So the current value of the apartment complex would be (490,000-58500)

The current value of the apartment complex is $431500

Explanation:

3 0
3 years ago
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