Answer:
The correct answer is option C.
Explanation:
A decrease in the money supply would reduce the availability of credit in the market. The money supply curve will shift to the left. This would further cause the interest rate to increase.
This increase in the interest rate would increase the cost of borrowing. As a result, the cost of borrowing will increase. This will cause the planned investment to decline.
Since investment expenditure is a component of aggregate demand, a decline in the investment will cause the aggregate demand to decrease as well.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
A.are a good source of referrals.
Answer:price elasticity of demand for Dunkin Donuts’ regular coffee is 1.8
Explanation: Using the midpoint formnulae
Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.
Percentage change in quantity = new quantity - old quantity / (new quantity + old quantity)/2 x 100
= 40-10/(40+10)/ 2 = 30 /25 = 1.2 x 100 =120%
Percentage change in price = new price - old price / new price + old price)/2 x 100
= 1- 2 / (1+2)/2= -1/1.5x 100 = -66.67 %
Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.
= 120%/-66.67%= -1.79 = -1.8
For Price elasticity of demand, the sign is not included and the basis for elasticity is on the value itself . here we can conclude that the Price elasticity of demand for Dunkin donut is 1.8 and elastic because a fall in price led to an increase in amount being sold.
Answer:
-$3,000
Explanation:
Data provided in the given question:-
bonds payable = $10,000
unamortized discount = $2,000
purchased bonds = $11,000
The computation of the consolidated gain or loss on a consolidated income statement for 2018 is given below :-
= (bonds payable - unamortized discount) - purchased bonds
= ($10,000 - $2,000) - $11,000
= $8,000 - $11,000
= -$3,000