Answer:
The correct answer is letter "D": nominal interest rate; hold.
Explanation:
The demand of money refers to the amount of money people prefer to hold in cash instead of investment vehicles or assets. The demand for money is proportional to individuals' income and the interest rate. According to this approach, when the interest rates are higher, people prefer to invest. When interest rates fall, people prefer to hold cash.
Therefore, <em>the demand for money explains the relationship between the quantity of real money demanded and the nominal interest rate that people prefer to keep, remaining the same all other factors that influence the amount of money.</em>
Answer:
3400, Rise, C
Explanation:
1. Since there are just 3 firms and two already has a sum total of 70% (40+30), the third firm will have a market share of 30%
HHI= 
HHI= 1600+900+900
HHI= 3400
2. Abe's Bikes with 30% leaves the market, if the two firms were to share Abe's market share equally (15+15), it will leave Firm A with 55% (40+15) and Firm B with (30+15) 45%
Therefore,
HHI= 
HHI=3025+2025
HHI= 5050
A rise in HHI
3. C
An index of 10,000 corresponds to a monopoly firm with 100% market share.
Answer:
B
Explanation:
I believe it is the interest rate the federal reserve uses for loaning to banks. Its the minimal rate, also.
Answer:
$52
$ 1.33
- consumer price will increase
- consumer surplus will decrease
- import will decrease
- reduced export
- portends gloom for the general outlook for the economy
Explanation:
Given domestic demand curve, S(p) = 20p⁻⁰°⁵
the domestic supply curve S(p)= 5p⁰°⁵
world price is $7.00
using calculus to determine the changes in consumer surplus
by consumer surplus means in this case supply exceeds demand
we establish the equilibrium point where the supply and demand functions meet or are equal
solving 20p⁻⁰°⁵ = 5p⁰°⁵
20/5 = p⁰°⁵/p⁻⁰°⁵
4 = p⁰°⁵⁺⁰°⁵
4= p = q which is the quantity produced
consumer surplus = maximum price willing to pay - Actual price
= ∫⁴₀ dp dp - p* q
= ∫⁴₀20p⁻⁰°⁵ dp- 7* 4
= 20∫⁴₀p⁻⁰°⁵ dp -28
= 20/0.5 p⁰°⁵- 28
= 40 *4⁰°⁵ - 28 = $52
producer surplus = it is a measure of producer welfare. It is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive
thus producer surplus = p* q - ∫⁴₀ d(s) dp
= 7 * 4 - ∫⁴₀ 5p⁰°⁵ dp
= 28 - 5 ∫⁴₀ p⁰°⁵ dp
= 28 -5 *2/3 p¹°⁵
= 28 -5 *2/3 4¹°⁵
=$ 1.33
welfare from eliminating free trade
- consumer price will increase
- consumer surplus will decrease
- import will decrease
- reduced exports
- portends gloom for the general outlook for the economy
