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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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The california “standard form” policy of title insurance on real property insures against loss occasioned by:
AVprozaik [17]

The California “standard form” policy of title insurance on real property insures against loss occasioned by a forgery in the chain of recorded title.

 

To add, standard form policy is an insurance policy form that is designed to be used by many different insurers and has exactly the same provisions, regardless of the insurer issuing the <span>policy.</span>

3 0
3 years ago
If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium pri
never [62]

Answer:

If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to <u>rise and the equilibrium quantity to stay the same</u>.

Explanation:

Perfectly inelastic demand curve indicates the quantity demanded for the life-saving medicine remains the same or does not change in response to a change in price.

Since a part of the law of supply states that the lower the quantity supplied, the higher the price; a reduction in the supply of the life-saving medicine will increase its price.

The combining effect of the two above will lead to an increase in the equilibrium price while the equilibrium quantity will remain the same as it will not respond to the change in price.

The attached graph explains this more clearly. In the graph, the demand curve DD is used to represent the perfectly inelastic demand curve for the life-saving medicine. Therefore, the quantity remains at q no matter the changes, either increase or decrease, in price. Movement from the supply curve S1 to S2 indicates a reduction in supply of the life-saving medicine which causes an increase in the equilibrium price from Po to P1 while the equilibrium quantity stays at q.

This therefore shows that if the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to <u>rise and the equilibrium quantity to stay the same</u>.

8 0
3 years ago
Kim hires michelle to go to the art gallery and purchase a specific painting for him. the painting costs $1,500. because this is
svetoff [14.1K]
<span>Under agency law, Michelle can work as Kim's agent in the purchase of the contract. Kim would be the principle under the contract, Michelle would be the agent, and the gallery would be the 3rd party. Kim needs to authorize Michelle to complete a contract on his behalf and he will in turn be bound, just as the gallery will be bound.</span>
5 0
3 years ago
Assume the production of a good causes a negative externality. In the market equilibrium, the marginal consumer values the good
rosijanka [135]

Answer:

less than the social cost of producing it

Explanation:

A negative externality is a cost that is suffered by a third party as a result of an economic transaction. In a transaction, the producer and consumer are the first and second parties, and third parties include any individual, organisation, property owner, or resource that is indirectly affected. Externalities are also referred to as spill over effects, and a negative externality is also referred to as an external cost.  Some externalities, like waste, arise from consumption while other externalities, like carbon emissions from factories, arise from production. For example, If we consider a manufacturer of computers which emits pollutants into the atmosphere, the free market equilibrium will occur when marginal private benefit = marginal private costs, at output Q and price P. The market equilibrium is at point A. However, if we add external costs, the socially efficient output is Q1, at point B.  At Q marginal social costs (at C) are greater than marginal social benefits (at A) so there is a net loss. For example, if the marginal social benefit at A is £5m, and the marginal social cost at C is £10m, then the net welfare loss of this output is £10m - £5m = £5m. In fact, any output between Q1 and Q creates a net welfare loss, and the area for all the welfare loss is the area ABC.  Therefore, in terms of welfare, markets over-produce goods that generate external costs. In the market equilibrium, the marginal consumer values the good less than the social cost of producing it.

3 0
3 years ago
The key to any successful product promotion is selecting the right promotional mix. True False
elena-s [515]
True. In order to productively promote a product you need to know what characteristics to promote and how much in order to get more buyers attention. Please mark my answer brainliest so that I can move up to my next rank. Thank you and have a nice evening.
6 0
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