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KengaRu [80]
3 years ago
14

In the AS/AD model, as the price level falls, the holders of money become richer and buy more. This is one reason why the aggreg

ate demand curve is downward sloping.
A. True
B. False
Business
1 answer:
ioda3 years ago
4 0

Answer:

True

Explanation:

The statement is true.

Suppose a consumer purchases a bundle of goods, say 40 units with his given money income of $1000.

Now, if there is a fall in the price level of the goods then this will increase the purchasing power of the consumer and hence he will be able to buy more quantity of goods, say 60 units with the same level of money income i.e $1,000.

This illustrates that as the price level falls, the purchasing power of the consumer increases or we can say that holders of money become richer.

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A researcher is testing a new painkiller that claims to relieve pain in less than 15 minutes, on average. a. State the hypothese
zmey [24]

Answer:

a. H0 : U ≥ 15

   Ha : U < 15

b. Type I error is incorrectly conclude that the pain is reduced in less than 15 minutes.

c. Type II error is fail to conclude that time for pain reduction is less than 15 mints when actually its less than 15 minutes.

Explanation:

Null hypothesis is a statement that is to be tested against the alternative hypothesis and then decision is taken whether to accept or reject the null hypothesis.

Type I error is one in which we reject a true null hypothesis.

Type II error is one in which we fail to reject the null hypothesis that is actually false.

6 0
3 years ago
Scenario:
Misha Larkins [42]

Answer:

b. substitutes

b. competitive intelligence.

Explanation:

In the context, Paul and his wife wishes to open up a new restaurant in Beaufort and did much of analysis and research before taking any decision and studying the restaurant industry market.

The factor that Paul have considered in analyzing the competitive environment is the substitutes. The competitive environment as described by Michael Porter includes customers, substitutes, suppliers, new entrants, compliments and other rival firms.

The information Paul has collected in the competition analysis can be referred to -- competitive intelligence.

Competitive intelligence may be defined as the information that is necessary in deciding how best to manage in the competitive environment that the managers have identified.

3 0
3 years ago
If inflation expectations increase, but the return on money doesn’t, people will want to hold less money, ceteris paribus, becau
11Alexandr11 [23.1K]

Answer:

TRUE

Explanation: If the return on money does not rise in relation to the expectation of a rise in inflation, people will have less need to keep more money with them, if other factors remain constant (ceteris paribus) the relative return on goods such as Land,gold,turnips,buildings etc and other non financial items  will increase. This situation tries to show the relationship between a rise in inflation and a rise in non financial items this tries to explain the MONEY THEORY.

6 0
3 years ago
Salvage value was ignored when originally calculating the units-of-production depreciation. This error would cause A. the period
elena-s [515]
I think the correct answer would be that the period's net income that is calculated would be overstated. Not accounting the salvage would mean that the calculated income is too much of what it really is since the depreciation value is miscalculated. Hope this helps. 
8 0
3 years ago
O’Connor Company ordered a machine on January 1 at a purchase price of $100,000.
Arte-miy333 [17]

Answer and Explanation:

The effect of each transaction is shown below:-

                                    Accounting equation

               Assets =                       Liabilities (+)                      Equity

1 Jan        No effect                        No effect                       No effect

2 Jan      Cash       -$25,000     Notes payable  $75,000

              Machine  +$100,000

3 Jan      Cash        -$1,000

              Machine   +$1,000

5 Jan      Cash        -$6,000

              Machine   +$6,000

Here, + sign indicates the increase in amount and - sign indicated the decrease in amount.

7 0
3 years ago
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