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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.

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Name any four roles (functions) of money
andrezito [222]

Answer:Money serves several functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.

Explanation:

6 0
3 years ago
What two companies rate and publish bonds? a. Poor Richard s and Moody s c. Sampson s and Monroe s b. Standard and Poor s and Mo
Andrej [43]
I think the correct answer from the choices listed above is option B. The two companies that rates and publish bonds are Moody's and Standard's and Poor. These companies had <span>maintained high level of credibility and their ratings are highly respected worldwide. Hope this answers the question.</span>
5 0
3 years ago
Read 2 more answers
A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools
marishachu [46]

Answer:

Break-even point in dollars= $36,364

Explanation:

Giving the following information:

A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. The fixed cost for the firm is $20,000.

To calculate the break-even point in dollars for the firm, we need to use the following formula:

Break-even point (dollars)= Total fixed costs / [(weighted average selling price - weighted average variable expense)/ weighted average selling price]

weighted average selling price= (selling price* weighted sales participation)= $50

weighted average variable cost= (variable cost* weighted sales participation)

weighted average variable cost= (25*0.5 + 20*0.50)= $22.5

Break-even point in dollars= 20,000/ [(50 - 22.5)/ 50]= $36,364

4 0
3 years ago
Sherman Peabody earns a monthly salary of ​$1,500​, which he receives at the beginning of each month. He spends the entire a
ale4655 [162]

Answer: A. maximizes the profits from money management.

Explanation:

The optimal average level of money is indeed the amount that maximises profit from money management.

Money management is essentially taking charge of your money and ensuring that you manage it in such a way as to limit unnecessary expenses whilst growing money through measures such as budgeting, investing and expenses tracking.

With Mr Peabody's income and other financial constraints, the optimal average level of money will be the most he can maximise from managing his money.

6 0
3 years ago
In March, Stinson Company completes Jobs 10 and 11.
mario62 [17]

Answer:

The journal entries are as follows:

(i) On March 31,

Finished Goods A/c Dr. $56,400

           To Work in Process        $56,400

(To record the completion of the two jobs)

(ii) On March 31,

Cash A/c Dr. $38,000

  To sales                    $38,000

(To record the sale Job 10)

(iii) On March 31,

Cost of goods sold A/c Dr. $21,400

            To finished goods                 $21,400

(To record the cost of the job sold)

8 0
3 years ago
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