You would have to earn an <span>Associate of Applied Science (AAS) degree or an advanced technical certificate. </span>
Answer:
would leave the market first if the price were any lower.
Explanation:
Utility can be defined as any satisfaction or benefits a customer derives from the use of a product or service.
Thus, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.
In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.
A marginal seller refers to an individual or business firm that is most willing to sell his or her goods and services at a price that is typically equal to their economic cost while forfeiting producer surplus.
A producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.
Hence, a marginal seller is the seller who would leave the market first if the price were any lower.
Answer:
The Central Bank is trying to increase money supply.
Explanation:
When the Central Bank makes moves to increase reserves, it means that it is simply trying to mop up excess cash from the economy to fight inflation. Spiking inflation means that the power of a currency is gradually being eroded. The Central Bank cannot allow this to happen so it hits the "Reduce Money In Circulation" button. It does this by reviewing upwards, the money reserves which commercial banks must hold with the Central Bank.
It can also increase the rate at which it lends to the Commercial Banks and Investment houses. Commercial Banks, in turn, transfer the additional cost of borrowing to businesses who will seek loans. This slows down the rate at which money is pumped into the economy.
In the question, however, we notice that the Central Bank has enervated its reserves. This means that it is pumping more money into the economy. This economic move may have been executed to prevent the economy from slipping into a recession or simply to stimulate the economy.
In the short run, increased money supply means, businesses have more access to funds from commercial banks. More funds mean, more investment. Increased investment spending means the businesses will need to expand operations, hire more staff, and the multiplier effect goes on and on.
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The relationship between planned investment and interest rates is that investment spending is inversely related to interest rates.
<h3>How are investment spending and interest rates related?</h3>
Investment spending depends on being able to take loans from financial institutions to sponsor capital projects.
If interests rate are high, there will be less planned investments because the cost of taking a loan will be high. The relationship is there inverse in nature.
Find out more on interest rates at brainly.com/question/26540958.
Tax multiplier = -1.5
Tax increase = $200 billion
Therefore, since the multiplier is a negative value, the GDP must have gone down.
GDP = Tax increase/Tax multiplier = 200/-1.5 = $133.33 billion decrease.
Then, the correct answer is c.
