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Masteriza [31]
4 years ago
6

Refer to the diagrams. The numbers in parentheses after the AD1, AD2, and AD3 labels indicate the levels of investment spending

associated with each curve. All figures are in billions. If aggregate demand is AD3 and the monetary authorities desire to reduce it to AD2, they should
Business
2 answers:
maxonik [38]4 years ago
5 0

Answer:

Explanation:

Contractionary monetary policy is a type of economic policy that is been design to combat inflation which has to do with decreasing the supply money so that there will be an increase in the cost of borrowing which in turn make the GDP to decreases and inflations become dampens. The central bank and other monetary authorities reduces aggregate demand to AD2 from AD2 that it was, in turn, money in supply will decreases to $100 from that it was $120. This reduction will make a decrease in the way consumer spend. There will be a decrease in prices of commodities and output produced

FrozenT [24]4 years ago
4 0

Answer:

Decrease the money supply from $120 to $100

Explanation:

If the monetary authorities reduces aggregate demand from AD3 to AD2, money supply decreases from $120 to $100. This decrease will cause a decrease in consumer spending. There will be a reduction of price levels and real output.

This is also called contractionary monetary policy and it causes interest rate to be higher there by reducing investments.

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How did the k-abc differ from the stanford-binet and wechsler tests?
Paraphin [41]
The K-ABC is different from the wechsler test and  stanford-binet because it was designed to measure several distinct aspects of intelligence. The K-ABC test is just designed to measure several distinct aspects of intelligence of human or students who are taking the test. So the answer in this question is, it was designed to measure several distinct aspects of intelligence.
3 0
3 years ago
What are the disadvantages of international trade?
Phoenix [80]

Answer:

It enables a country to obtain goods which it cannot produce or which it is not producing due to higher costs, by importing from other countries at lower costs. (iii) Specially Foreign trade leads to specialisation and encourages production of different goods in different countries.

Explanation:

inorder to minimize the disadvantage , there should be privacy maintainence in the intellectual property, there should be balanced in domestic and international trade. the over use of natural resources should be controlled. there should be proper checking of the good and services before trading them inside country or in foreign country, etc

7 0
3 years ago
Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli
Delvig [45]

Answer:

10.5%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

where,

Risk free rate of return = 7%

Market rate of return = 14%

And, the beta is 0.5

So the expected return is

= 7% + 0.5 × (14% - 7%)

= 7% + 0.5 × 7%

= 7% + 3.5%

= 10.5%

4 0
3 years ago
Repost because it got lost in a sea of questions)
saveliy_v [14]

Answer:

YESSSSSS

Explanation:

3 0
3 years ago
Read 2 more answers
A set of speakers may be purchased now for $1000 or by making a down payment of $150 and additional payments of $100 at the end
victus00 [196]

Answer:

the nominal annual interest rate on the payment plan is 15%

Explanation:

According to the question, a one-time payment for the speakers will cost $1,000

An installmental payment will have a $150 down payment and then another $100 fro ten subsequent months.

Calculating the total payment at tthe end of the payment plan will give

$150 + ($100 x 10months)

we have, $150 + $1,000 = $1,150.

This shows that at the end of the payment plan, the set of speakers would have cost $1,150 instead of $1,00 one-time payment.

Step 2:

To calculate the interest rate, we subtract the one-time price from the payment plan price and express it as a percentage of the one time price to get tthe interest rate.

$1,150-$1,000 = $150

then we have,

($150 ÷ $1,000) × 100%

= 0.15 × 100%

- 15%

The nominal annual interest rate is 15%.

Cheers.

4 0
3 years ago
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