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frosja888 [35]
2 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]2 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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The Michael Miller Corporation has a sales budget for next month of $200,000. Cost of goods sold is expected to be $125,000. All
frutty [35]

Answer:

the  inventory to be purchased next month is $123,000

Explanation:

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3 years ago
What is the main motive behind dealer incentives?
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2 years ago
Munoz, Inc., produces a special line of plastic toy racing cars. Munoz, Inc., produces the cars in batches. To manufacture a bat
cestrela7 [59]

Answer:

Explanation:

1. Calculate the efficiency variance for variable overhead setup costs.

This will be calculated as:

= Standard Hours - Actual Hours) × Standard rate

= (15000/225 × 5.25 - 15000/250 × 5) × 38

= (350 - 300) × 38

= 50 × 38

= 1900 Favourable

2) Calculate the rate variance for variable overhead setup costs.

This will be:

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= -2 × 300

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= (15000/225×5.25 ×38) - (15000/250×5 ×40)

= 13300 - 12000

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4) Calculate the spending variance for fixed setup overhead costs.

what formular did you use.

This will be:

= Standard Cost - Actual Cost

= 9975-12000

= -2025 Unfavorable

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3 years ago
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