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Ivahew [28]
3 years ago
11

Suppose there is a rash of pickpocketing. As a result, people want to keep less cash on hand, decreasing the demand for money. A

ssume the Fed does not change the money supply. According to the theory of liquidity preference, the interest rate will _______, which causes aggregate demand to ______. If instead the Fed wants to stabilize aggregate demand, it should _______ the money supply by _______ government bonds.
Business
2 answers:
Goshia [24]3 years ago
4 0

Answer:

Fall & rise

decrease & selling

Explanation:

The Liquidity Preference Theory in all  stated  that the demand for money is not necessary to borrow money but the desire to remain liquid that is there will be money is the interest rate Keynes in his definition of the  liquidity preference theory stated the 3 motives behind this theory;they are;

a.  transactions motive

b.  precautionary motive

c. speculative motive

Ganezh [65]3 years ago
3 0

Answer:

Fall;rise.

Decrease;selling.

Explanation:

Suppose there is a rash of pickpocketing. As a result, people want to keep less cash on hand, decreasing the demand for money. Assume the Fed does not change the money supply. According to the theory of liquidity preference, the interest rate will fall, which causes aggregate demand to rise.

If instead the Fed wants to stabilize aggregate demand, it should decrease the money supply by selling government bonds.

You might be interested in
Do all states have income tax
Aloiza [94]

Answer:

not all of them

Explanation:

Most Americans file a state income tax return and a federal income tax return. The states with no income tax are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. If you live in one of those seven states, or New Hampshire or Tennessee, you may not need to file a state return.

5 0
3 years ago
Read 2 more answers
Q 12 question 12 a project manager must publish a project schedule. activities, start/end times, and resources are identified. w
Aloiza [94]

The next step after publishing a project schedule activities, start/end times and resources are identified is TO CONFIRM THE AVAILABILITY OF RESOURCES

Once the resources are identified the project manager should make sure that the identified resources are available

6 0
3 years ago
. Underwater Experimental is considering a project which requires the purchase of $498,000 of fixed assets. The net present valu
GarryVolchara [31]

Answer:

$13.25

Explanation:

The computation of the new book value per share is as follows

current market price per share is

= market value ÷  number of shares outstanding

= $936,000 ÷ 60,000

= 15.6

Now

number of shares to be issued is

= cost of the machine ÷current market price per share

= $498,000 ÷ $15.60

= 31923.07692

Now

The new book value per share is

= (current book value + amount raised from the issuance of shares ) ÷ ( current number of shares + number of shares issued for machinery purchase

= ($720,000 + $498,000 ) ÷ ( 60,000 + 31923.08 )

= $13.25

3 0
3 years ago
You recently purchased a stock that is expected to earn 30 percent in a booming economy, 9 percent in a normal economy, and lose
sergiy2304 [10]
Took me a bit to understand what this is. I have no business sense at all.

Expected Rate of Return = 30%*5% + 9%*75% - 33% * (100 - 75 -5)%
Expected Rate of Return = 0.015 + 0.0675 - 33%*20%
Expected Rate of Return = 0.015 + 0.0675 - 0.066
Expected Rate of Return = 0.0165

This then is expressed as a %
0.0165 = 1.65 % Sounds like you are buying a US short term treasury.
If anyone else answers, take their answer.
 
3 0
3 years ago
Fatuma invests a total of $22,000 in two accounts. The first account earned a rate of return of 15% (after a year). However, the
Lesechka [4]

Answer:

$7,500 was invested in the account that gained 15%, while $14,500 was invested in the account that lost 7%.

Explanation:

Given that Fatuma invests a total of $ 22,000 in two accounts, and the first account earned a rate of return of 15% after a year while the second account suffered a 7% loss in the same time period, and at the end of one year the total amount of money gained was $ 110.00, to determine how much was invested into each account, the following calculation must be performed:

11,000 x 0.15 - 11,000 x 0.07 = 880

5,000 x 0.15 - 17,000 x 0.07 = -440

8,000 x 0.15 - 14,000 x 0.07 = 220

7,000 x 0.15 - 15,000 x 0.07 = 0

7,500 x 0.15 - 14,500 x 0.07 = 110

Therefore, $ 7,500 was invested in the account that gained 15%, while $ 14,500 was invested in the account that lost 7%.

8 0
3 years ago
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