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nlexa [21]
3 years ago
6

Using the money demand and money supply model, an open market purchase of Treasury securities by the Federal Reserve would cause

the equilibrium interest rate to
Business
1 answer:
alexandr1967 [171]3 years ago
6 0

Answer:

C. decrease

Explanation:

In the case when the money demand and the money supply model is used so the open market purchase would result the interest rate of equilibrium to decrease as if there is an open market purchase so it rise the money supply due to which the supply curve of the money move shiftward

Therefore the rate of interest should be decreased

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The "principal-agent problem" often arises in public choice when politicians pursue the best interests of their constituents
Gekata [30.6K]
<span>The "principal-agent problem" is when one person can make a decision on behalf of someone else that impacts the "principal". The agent works to favor the interests of the principal and receives incentives for doing so in return. The agent can get into a conflict of interest or make morally wrong decisions in favor of the principal they are helping. </span>
3 0
3 years ago
Three individuals, Mary, Jack and Helen, make up the total demand for donuts per month in a particular market.
Paraphin [41]

The market demand curve would be 1000 - 0.125Q.

<h3>How to calculate the demand curve?</h3>

It should be noted that the market demand curve will be the sum of the individual demand curve.

The market demand curve will be calculated thus. Mary’s demand curve is 5P = 5000 – 1.25QM. Here, p = 1000 - 0.25QM

Jack’s demand curve for donuts is given by P = 1000 – 0.5QJ. Helen’s demand curve is given by QH = 2000 – 2P. This will be P = 1000 - 0.5QH.

The slope will be:

= 0.5 × 0.25

= 0.15

The demand function of Jack and Helen are the same. The demand curve will be 1000 - 0.125Q.

Learn more about demand on:

brainly.com/question/1245771

#SPJ1

5 0
2 years ago
A new study shows that onions improve cognitive and heart health. This causes the demand curve to shift to the right, so that co
Deffense [45]

The complete question with diagram is attached

Answer:

($3.00, 420 lbs) and ($2.10, 510 lbs)

Explanation:

A shift in demand occurs when the quantity of a product consumers wants changes at all price levels.

A shift to the right indicates an increase in quantity demanded at all prices, while a shift to the left indicates a reduction in quantity demanded at all prices.

In the given scenario there is a shift in demand to the right with increase in 20 lbs of onions.

So at every price level there will be an increase in quantity demanded by 20 lbs.

According to the diagram at price $3 quantity initially demanded was 400 lbs. With the demand shift it will now be 400 + 20 = 420 lbs.

At price $2.10 demand was initially 490 lbs now it will be 490 + 20 = 510 lbs

5 0
2 years ago
Assuming a binding price floor, the more inelastic the supply and the demand curves are, the:1'smaller the shortage a price floo
KATRIN_1 [288]

Answer:

Option "3" is the correct answer.

Explanation:

Inelastic demand curve depict when there's no evident increase in demand due to an increase in price.

3 0
3 years ago
Read 2 more answers
Possession utility is most closely related to which part of the marketing mix plz help​
defon

Answer:

price

Explanation:

Possession utility is the value customers have while buying a product and they have the choice to use the product for the purpose it was made for or finding a new way to use the product.

Buying and selling of anything involves transfer of ownership from one to another. So to be successful in this throat cutting competition one should strategize to make this transfer of possession easy. So possession utility is what lets customer physically asses what they bought.

6 0
3 years ago
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