False
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The quantity of money demanded <u>increases</u> and the nominal interest rate <u>falls.</u>
In the short run, if the Fed(Federal Reserve) increases the quantity of money, the quantity of money demanded will increase and the nominal interest rate falls.
The quantity of the money supplied and the nominal interest rates has an inverse relation. That is, when there is a huge supply of money in a short-term, it will cause an increase in the nominal interest rate.
The nominal interest rate refers to the interest rate before adjusting to inflation or price-hike. It balances the supply and demand of money.
So when there is an increase in the supply of money ,there will be the resulting increase in the demand of money too. The total money that the population wants to hold is referred as the money demanded.
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Answer:
b. Hold the seller in breach of the entire installment contract when a nonconforming installment substantially impairs the value of that installment alone.
Explanation:
In installment contract, the seller and the buyer agrees on the ways through which the buyer will pay for the goods which he or she purchases installmentally rather than a one off payment. In a situation where the agreement has been reached, <em>it expected that the buyer and the seller to conform to the said agreement. However,the seller is hold in breach of the entire installment contract if there is impairment of the value of the goods substanstially.</em>
Answer:
opportunity cost = 30,000
Explanation:
The opportunity cost is the return in the alternative investment:
250,000 x 12% = 30,000 opportunity cost
The economic profit would be the lease less the opportunity cost
35,000 - 30,000 = 5,000 economic profit
<u>Note: If there was two or more alternatives, </u>we should pick the investment with the highest yield.
