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statuscvo [17]
3 years ago
13

When the price level decreases: Group of answer choices The demand for money falls and the interest rate falls Holders of financ

ial assets with fixed money values decrease their spending Holders of financial assets with fixed money values have less purchasing power There is a decrease in consumer spending that is sensitive to changes in interest rates
Business
2 answers:
harkovskaia [24]3 years ago
7 0

Answer:

The correct answer is letter "A": The demand for money falls and the interest rate falls.

Explanation:

When price level decreases individuals purchasing power increases. <em>This scenario causes people to request fewer credits and loans, which diminishes the demand for money. The interest rate falls then to promote loans and private investment with it. </em>As a result, exchange rates drop boosting international commerce, moreover exports.

rodikova [14]3 years ago
3 0

Answer:

The answer is A. demand for money falls and the interest rate falls

Explanation:

The demand for money is the amount of money or amount of wealth households or businesses choose to hold in the form of money(cash or cash-equivalent).

When the price level decreases, the purchasing power of consumers increases, so consumers' demand for money will be reduced or lower. The transactional demand for money will be reduced.

Also when price level decreases, interest rate falls. Because the purchasing power of consumers has been increased, the excess money will be kept in banks and the increases the money supply. So with an increase in money supply, interest rate will be reduced to encourage borrowing.

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Free_Kalibri [48]

decision tree

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6 0
2 years ago
Role of central government in regional development​
spin [16.1K]

Answer:

The central government is, essentially, the public body in charge of managing the nation's resources and controlling compliance with the laws. In other words, it applies its power within the entire national territory, but in turn delegating certain powers to state and local governments, which have a much stronger contact with the population of cities and states. Thus, within the regional development process in each nation, local and state governments are the main executors of development policies, but with the supervision and guidance of central governments.

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realistic job preview

Explanation:

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3 0
3 years ago
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Partly this statement is true however this does not implies to all.
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3 years ago
If you have reconciled an account before, you need all of this information except _____ to reconcile a bank account.
SVEN [57.7K]

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Basically, the steps to reconciling an account are as follows:

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Please note that your question is incomplete so I gave you a general overview to help you better understand the concept.

Read more about bank statements here:

brainly.com/question/15525383

7 0
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