1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Synergy is obtained by apportioning financial resources among divisions to increase financial returns or spread risks among diff
garik1379 [7]
The statement above is FALSE.
Apportioning financial resources among divisions to increase financial returns or spread risk among different businesses is called PORTFOLIO STRATEGY.
SYNERGY refers to the performance gains that is achieved when individuals and departments coordinate their actions. 
7 0
3 years ago
When school districts are funded by local taxes only, the likelihood of disparities in funding goes up.
S_A_V [24]
I think the answer is false because many schools raise fundraisers to help pay for things. If this is the case the money for the school will be quite low
5 0
3 years ago
Becky asks her friend Maggie to walk her dog for her, and Maggie agrees. While out walking, the dog gets away from Maggie and ru
mezya [45]

Answer:A. Becky is liable for the damages to Mr. Edwards' garden, because she exercised control over her agent, Maggie.

Explanation:This is a situation where a person is working under the instructions of another, Becky will take the full responsibility for the damage done by the Dog to Mr. Edwards garden.

This can be seen also in conditions where a principal gives instructions or job to an Agent, the actions of the agent will directly impact the Principal as the Agent is working according to the directives of the principal.

7 0
3 years ago
When a company such as home depot provides a loyal customer with a relevant coupon, based on previous purchases through his or h
Kruka [31]
<span>Excite the Customer -Firms use many kinds of social media to excite their customers about an idea, product, or company -mobile applications and games for example -Firms actively use social networks to communicate deals that are likely to excite consumers -Facebook, Pinterest, and Google +</span>
5 0
4 years ago
g A price ceiling that is set below the equilibrium price _____ . Group of answer choices causes suppliers to lose money creates
Allushta [10]

Answer:

creates a shortage

Explanation:

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

Because price is set below equilibrium price, demand would outstrip supply and this would lead to a shortage

Effects of a price ceiling

1. It leads to shortages

2. it leads to the development of black markets

3. it prevents producers from raising price beyond a certain price

4. It lowers the price consumers pay for a product. This increases consumer surplus

6 0
3 years ago
Other questions:
  • Anemployer may choose to match money employees invest in a
    5·1 answer
  • Your financial institution can’t help you if there is a mistake on your bank account statement ?
    5·2 answers
  • Which of the following is a business plan most similar to?
    8·1 answer
  • Which of the following is not a tool of Monetary Policy?
    5·1 answer
  • Who is richer -Jeff Bezos or Bill Gates?​
    7·2 answers
  • A stock can split and add additional shares as specified per existing share OR a stock can reverse split and decrease the number
    5·2 answers
  • Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: Direct materials $
    6·1 answer
  • Precision Tool is trying to decide whether to lease or buy some new equipment for its tool and die operations. The equipment cos
    5·1 answer
  • 6. If consumers always spend 30 per cent of their income on food, then the income elasticity of demand for food is
    5·1 answer
  • Which of the following is considered the more industrial version of hunting?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!