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lys-0071 [83]
3 years ago
14

What is the quantity of money demanded when the interest rate is 6%? quantity: $ billionbillion What is the quantity of money de

manded when the interest rate is 8%? quantity: $ billionbillion Choose the statement that best explains the relationship between the quantity of money demanded and the interest rate on bonds. If the interest rates increase, the quantity of money demanded decreases. If the interest rates increase, money demand falls. If the interest rates increase, money demand increases. If the interest rates increase, the quantity of money demanded increases.

Business
1 answer:
maksim [4K]3 years ago
7 0

Question

Using the attached hypothetical demand curve, answer the following questions:

  1. What is the quantity of money demanded when the interest rate is 6%?
  2. What is the quantity of money demanded when the interest rate is 8%?
  3. Choose the statement that best explains the relationship between the quantity of money demanded and the interest rate on bonds.

A) If the interest rates increase, the quantity of money demanded decreases.

B) If the interest rates increase, money demand falls.

C) If the interest rates increase, money demand increases.

D) If the interest rates increase, the quantity of money demanded increases.

Answer 1) & 2)

When the interest rate is 6%, the demand for money is $40 billion, and when the interest rate climbs to 8%, the money nosedives to $20 billion.      

Answer 3):

The correct choice is B)

Explanation:

The relationship between interest rate and money demand is very simple. The higher the rate, the higher the cost of capital. The higher the cost of capital, the lower the Return On Investment. Because businesses are structured to thrive on more profit or returns, business owners, generally will gun for more money when there is a lower interest rate thus creating a  surge in demand.

Kindly note that the analysis is based the assumption that all other factors remain constant.

Cheers!

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Katie is looking over some of the product histories for the company. She has noticed that many more products have been rendered
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3 years ago
For a piece of legislation to proceed to the Senate, it needs a certain number of votes. Whose job is it to organize votes by me
Zigmanuir [339]

Answer:

The Whip

Explanation:

According to my research on the process that every legislation goes through in order to proceed to the senate, I can say that based on the information provided within the question it is the job of The Whip to organize the votes. Formally known as the "assistant party leader", The Whip's primary job is to keep track and sum up the number of votes for and against a piece of legislation.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
2 years ago
What is the effect of declaring a stock dividend on the liabilities and stockholders' equity section of the balance sheet? a.A d
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Answer:

An increase in total liabilities and a decrease  in stockholders' equity

Explanation:

When a dividend is declared but not ye paid, it is credited as current liability because it has increased the company liability while retained earnings is being Debited because of the profit distribution.

When it is eventually paid, cash account is credited while dividend liability account is  debited.

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3 years ago
Ten years ago, Oanh bought a house for $200,000 in Chico. She put in a cash down payment of $40,000 and took out a loan for $160
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Answer:

The amount of equity Oanh have in her house is $300,000.

Explanation:

Equity can be described as the difference between the amount that is owed on a mortgage and the current worth of the home.

For this question, the amount of equity Oanh have in her house can be calculated as follows:

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5 0
3 years ago
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