The quantity of money demanded <u>increases</u> and the nominal interest rate <u>falls.</u>
In the short run, if the Fed(Federal Reserve) increases the quantity of money, the quantity of money demanded will increase and the nominal interest rate falls.
The quantity of the money supplied and the nominal interest rates has an inverse relation. That is, when there is a huge supply of money in a short-term, it will cause an increase in the nominal interest rate.
The nominal interest rate refers to the interest rate before adjusting to inflation or price-hike. It balances the supply and demand of money.
So when there is an increase in the supply of money ,there will be the resulting increase in the demand of money too. The total money that the population wants to hold is referred as the money demanded.
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Answer:
b. aggregate demand shifts right
Explanation:
When the aggregate demand curve shifts right, the quantity of output demanded for a given price level rises. Therefore, a shift of the aggregate demand curve to the right represents an economic expansion.
Answer:
Explanation:
X - number of units sold
Total cost for production = 1,500,000 + 1600X
Total cost for purchasing = 2000X
a. For 4000 units sold
Total cost for production = 1,500,000 + 1600 * 4000 = $7,900,000
Total cost for purchasing = 2000* 4000 = $8,000,000
In this case producing is cheaper. Therefore, it is better to produce
b. Y - break-even point
Then : 1,500,000 + 1600 * Y = 2000* Y
So 1,500,000 = 400 Y
Y = 3750
At №of units less than 3750 purchasing will be the better option
And above 3750 producing will be the better option
Answer: Option C
Explanation: In simple words, inside directors refers to the individuals who holds significant position or stake in the company along with the position in the broad of directors committee.
These individuals are appointed by the shareholders and are obligated to represent truther point of view and act in their best interest. They are of high power in the company as they have significant potion in the management as well along wight the privileges of the board of director.
Hence the correct option is C.
Answer:
Explanation:
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