Answer: Varies directly with nominal Gross Domestic Product (GDP).
Explanation:
The Transactions Demand for money refers to money that is kept by individuals, companies and even the Government to be able to purchase goods and services.
It varies directly with Nominal GDP because Nominal GDP includes inflation.
If Nominal GDP were to rise for instance, it would mean that Inflation has risen as well which means that people would need more money to be able to buy the now more expensive goods and services. This is an increase in Transactions Demand for money.
The reverse holds true signifying indeed that Transactions Demand for money varies with Nominal GDP.
The answer to your questin is THE 4TH ONE Please mark as brainlest if helps
Answer:
maximum interest rate = 3%
so correct option is A) 3%
Explanation:
given data
investment = $6000
receive = $6180
borrow = $6000
to find out
maximum interest rate bank needs to offer on the loan
solution
we consider here maximum interest rate bank needs to offer is = r
so value of investment will be express here as
value of investment = amount to be borrowed × ( 1 + r ) ................1
put here value we get rate r
6180 = 6000 × ( 1 + r )
solve it we get
rate = 0.03
maximum interest rate = 3%
so correct option is A) 3%
The answer to this answer is B.lower spending
Lower spending means that the government used less money to be allocated into the government programs (such as welfares, infrastructure, etc)
By doing this, the government will have larger chunk of the budget at the end of the fiscal year, which cause a budget surplus for the governemnt
Wages
The cost of labour is the sum off all wages paid to employees as well as the cost of employee benefits and payroll taxes paid by an employer.
The cost of labour is broken in direct and indirect cost.
