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:
true is the answer I think
Answer:
B. $275,000
Explanation:
The second machine will be depreciate over time as it can later be used for operational purposes or another research projects. The first, as can only be used for a research project It should be considered expenses for the entire amount regardless of the useful life.
Machine B useful life 10 years
depreciation expense: cost / useful life
250,000 / 10 = 25,000
machine A 250,000 + 25,000 depreciation for machine B = 275,000 total
If prices in the bond market become more volatile, everything else held constant, the demand curve for bonds shifts left and interest rates rises.
Interest is the amount paid by the borrower or deposit-taking financial institution to the lender or depositor in excess of the repayment of the principal at a specified rate. It is different from a fee that a borrower can pay to a lender or a third party.
Interest is the price you pay to borrow money or the cost you charge to borrow money. Interest is usually given as an annual percentage of the loan amount. This percentage is called the interest rate on the loan. For example, if you deposit money in a savings account, your bank will pay you interest.
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Answer:
a. $2,020 Favorable
Explanation:
The computation of spending variance for direct materials in April is shown below:-
For computing the spending variance for direct materials in April first we need to find out the actual price per unit which is here below:-
Actual price per unit = Actual direct material ÷ Actual units purchased
= $49,086 ÷ $5,060
= $9.70
Spending variance for direct materials in April = (Actual price per unit - Standard price per unit) × Actual quantity
= ($9.70 - $10.10) × 5,060
= -$0.4 × 5,060
= $2,024 Favorable
which is closest to $2,020 Favorable.
