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harkovskaia [24]
2 years ago
5

The liquidity preference model: a uses the demand and supply of money to determine the level of potential output. b uses the dem

and and supply of money to determine the unemployment rate. c uses the demand and supply of money to determine the interest rate. d uses the demand and supply of money to determine nominal output. e uses the demand and supply of money to determine the price level.
Business
1 answer:
Orlov [11]2 years ago
3 0

Answer:

uses the demand and supply of money to determine the interest rate.

Explanation:

The liquidity preference theory was developed by John Maynard Keynes.

The theory postulates that investors should ask for a higher interest rate the longer the duration of the investment is. The higher interest rate is to compensate investors for lack of liquidity.

According to this theory, the interest rate on long term investments would be the highest, followed by medium term investments. Short term investments would have the lowest interest rates

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Which of the following statements is true of financial leverage
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Maybe take a picture of it so i can help:)
6 0
2 years ago
If Crusoe increases production of berries from 42.0 pounds to 52.0 pounds and production is​ efficient, his opportunity cost of
sergeinik [125]

Crusoe's opportunity cost for producing a pound of berries would be 0.4 pounds of fish.

<h3>What is the opportunity cost of the fish?</h3>

This can be found as:

= Change in quantity of fish / Change in quantity of berries

Solving gives:

= (30 - 26) / 52 - 42

= 4 / 10

= 0.4 pounds of fish

Find out more on opportunity cost at brainly.com/question/1549591.

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3 0
2 years ago
If a seller in a competitive market chooses to charge more than the going price, then:
attashe74 [19]

Answer:

d. buyers will make purchases from other sellers

Explanation:

In the perfect competition structure producers have no power to change prices, as goods are homogeneous. Thus, since products are the same, if the producer raises the price, consumers will consume with other sellers.

3 0
3 years ago
Does supply curve shift to the left or right​
erastova [34]

Answer:

An increase in the change in supply shifts the supply curve to the right, while a decrease in the change in supply shifts the supply curve left....

8 0
3 years ago
Read 2 more answers
Quantity demanded price quantity supplied 45 $10 77 50 8 73 56 6 68 61 4 61 67 2 57 refer to the data. suppose quantity demanded
saul85 [17]

a. When the demand increases by 12 units, the equilibrium price rises to $6.2093 and the equilibrium quantity rises to 67.7442 units.

b. The price elasticity of supply (PES) at equilibrium is 0.20. Since the price elasticity is less than 1, we conclude that supply is inelastic.

From the given data, we can see that the equilibrium price is $4 and the equilibrium quantity is 68 units.

If the demand increases by 12 units at each point of price decline, the demand equation will be :

Qd = 105 - 6P

and the supply equation will be:

Qs = 51.6 + 2.6P

Since Quantity demanded and supplied are equal at equilibrium, we can equate the demand and supply equations and solve for price (P). Equating the two equations above, we get,

105-6P = 51.6 +2.6P

53.4 = 8.6P

P = $6.2093

Substituting the value of P in the demand equation, we get,

Qd = 105 - (6*6.2093)

Qd = 105 - 6P

Qd = 67.7442 units

b. Calculation of Price Elasticity of supply at equilibrium level.

P₀ = $4

Q₀ = 61

P₁ = $6.2093

Q₁ = 67.7442

% change in quantity = [ (Q_1 - Q_0) / Q_0 ] * 100

% change in quantity = 11.05607%

% change in price = [ (P_1 - P_0) / P_0 ] * 100

% change in price = 55.2325%

Price Elasticity of Supply (PES):

PES  = % change in quantity / % change in price

PES = 11.05607% / 55.2325%

PES = 0.20

8 0
3 years ago
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