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frosja888 [35]
3 years ago
11

According to liquidity preference theory, if the price level A. fell, the interest rate would fall, and induce investment spendi

ng to fall. B. rose, the interest rate would fall, and induce investment spending to rise. C. rose, the interest rate would rise, and induce investment spending to fall.
Business
1 answer:
Pavlova-9 [17]3 years ago
3 0

Answer:

The correct answer is: fell making the interest rate fall.

Explanation:

The preference for liquidity is a recurring expression in the study of economics, especially important in Keynesian theory and that assumes that people consider it better to have their savings in liquid form, that is, as money.

This concept, which is very recurrent in macroeconomics, assumes the existence of an outstanding trend in human and rational behavior through which individuals prefer to have their assets accessible and liquid compared to other possibilities. Originally, the definition of liquidity preference was coined by Keynes when explaining the concept of monetary demand and its mode of action.

This theory suggests that there is a direct relationship between interest rates or rates and people's preferences in terms of liquidity, because both maintaining money effectively and not doing so entail certain costs for these. In other words, saving money can translate into financial gains.

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<span>One part of Henry Clay's proposed American system to bring about economic improvement included support for a high tariff, the intent of which was to protect American industries while also generating revenue for the federal government.</span>
3 0
3 years ago
Fidelity Systems reports net income of $81 million. Included in that number is depreciation expense of $9 million, and a gain on
Lerok [7]

Answer:

$86 million

Explanation:

The computation of the net cash flows from operating activities using the indirect method is shown below:

Cash flows from operating activities

Net income $81 million

Add: depreciation expense $9 million

Less: Gain on sale of equipment -$1 million

Less: Increase in account receivable -$3 million

Less: Increase in inventory -$3 million

Add: Increase in account payable $3 million

Net cash flows from operating activities $86 million

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3 years ago
1. Identify the factors that impact the social responsibility policies implemented by businesses.
andreyandreev [35.5K]

Answer:

Number one is the answer

Explanation:

7 0
3 years ago
Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 10 apple trees. However the 3 acres differ in
Alex17521 [72]

Answer:the opportunity cost of growing another apple tree is 2 orange trees

Explanation:

Opportunity cost represents the  value of cost  what must be given up toin order to obtain the best alternative.

Here Farmer Brain has 3 acres of land that can support 10 apple threes on each acre, and 30 orange tree on best acre, 20 on good acre and 10 oranges on bad acre.

that means he can grows 30 apples  on the 3 acres and 60 oranges at  on the 3 acres. giving us

the opportunity cost of growing an orange tree is

60 oranges ( 30+20+10)trees= 30 apples tress

1 orange tree = 30/60

1 orange tree=1/2 apples

therefore the opportunity cost of growing an orange tree is half apple tree, Also the opportunity cost of growing an apple tree is 2 orange trees

7 0
3 years ago
An investor will choose between Asset Q with an expected return of 6.5% and a standard deviation of 5.5%, Asset U with an expect
MakcuM [25]

Answer:

Asset U

Explanation:

Reward-to-volatility ratio for Asset Q = Expected return / standard deviation

Reward-to-volatility ratio for Asset Q = 6.5% / 5.5%

Reward-to-volatility ratio for Asset Q = 1.1818

Reward-to-volatility ratio for Asset U = Expected return / standard deviation

Reward-to-volatility ratio for Asset U = 8.8% / 5.5%

Reward-to-volatility ratio for Asset U = 1.6

Reward-to-volatility ratio for Asset B = Expected return / standard deviation

Reward-to-volatility ratio for Asset B = 8.8% / 6.5%

Reward-to-volatility ratio for Asset B = 1.3538

The  investor should prefer Asset U because its has the highest reward to volatility ratio among the three options.

8 0
3 years ago
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