All categories

3 years ago

According to liquidity preference theory investment spending would rise if the price level

Business

1 answer:

ANTONII [103]3 years ago

4 0

Answer:

A.rose making the interest rate fall

Explanation:

According to the liquidity preference theory developed by John Keynes, if the money supply rises, price level also rises, interest rate falls. If interest rate falls, the price of bond rises which would increase capital gains. People would prefer to hold bonds instead of money, therefore, investment spending would rise.

The liquidity preference theory states that we hold money for transactive, speculative and precautionary motives.

You might be interested in

Searls Corporation, a merchandising company, reported the following results for July: Number of units sold 2,700 units Selling p

melisa1 [442]

Answer:

$534,600

Explanation:

<em>Contribution margin = Sales - Variable Costs</em>

where :

Sales = 2,700 units x $664 = $1,792,800

Variable Costs = Costs of Goods Sold + Variable Selling Costs + Variable Administrative Cots

= 2,700 units x $405 + 2,700 units x $48 + 2,700 units x $13

= $1,258,200

therefore,

Contribution margin = $1,792,800 - $1,258,200 = $534,600

6 0

2 years ago

Justify the establishment of a state owned compony

SSSSS [86.1K]

The establishment of a state -owned Company is really important for every nations, especially if it involved in the resources that is critically needed for the people.
For example, lets say that all of the water resources fall to the hands of capitalist. Imagine how expensive it could be to get a simple drinking water or for baths.i hop that helps

6 0

3 years ago

4. Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. TIP

AlexFokin [52]

The most important factor in the work process or industry is to retain the interest of the employee. And to retain them, their salary or profit must be adjusted to the best value. Unless the employee does not do his job properly, employees must receive bonuses or benefits to ensure them to stay in the company. It will actually make them stay longer, make them feel important and reduce costs for hiring new employees.

6 0

3 years ago

Regling Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $4

Leto [7]

Answer:

Dr Vacation pay expenses $40,000

Cr Vacation pay payable $40,000

Dr Pension expenses $222,750

Cr Cash $185,000

Cr Unfunded pension liability $37,750

Explanation:

Regling Company Journal entries

Dr Vacation pay expenses $40,000

Cr Vacation pay payable $40,000

Dr Pension expenses $222,750

Cr Cash $185,000

Cr Unfunded Pension liability $37,750

8 0

3 years ago

Using these data from the comparative balance sheet of K. Leen Company, perform vertical analysis.

iogann1982 [59]

Answer and Explanation:

The vertical analysis is presented below:

Comparative Balance Sheet

<u>Particulars Dec 31, 2020 Percentage Dec 31, 2019 Percentage </u>

(a) [(a) ÷ $3200000] × 100 (b) [(b) ÷ $3000000] ×100

Accounts

receivables $400,000 12.5% $400,000 13.3%

Inventory $864,000 27.0% $600,000 20.0%

Total Assets $3,200,000 100.0% $3,000,000 100.0%

4 0

2 years ago