1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Cerrena [4.2K]
3 years ago
15

According to liquidity preference theory, money supply and money demand are balanced by adjustments of

Business
1 answer:
givi [52]3 years ago
5 0

Answer:

Nominal Interest rate

Explanation:

According to liquidity preference theory, money supply and money demand are balanced by adjustments of Nominal Interest rate. Suppose you have some money, you will decide to either keep it in cash or in the bank. If you keep the money in cash, the opportunity cost of keeping in cash is the interest rate earned if you would have kept the money in the bank. Bank offers the nominal interest rates and not the real interest rates. Bank rates are not adjusted for inflation. So if the interest rate on money increases the opportunity cost of holding money in cash increases. If money supply in the economy increases the demand for money will increase only by reducing the interest rate because then only people fir hold cash and demand higher money.  So, money supply and money demand are balanced by adjustments of the Nominal Interest rate.

You might be interested in
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during
murzikaleks [220]

Answer:

$3,283

Explanation:

Calculation for the overhead cost be added to Job W at year-end

Using this formula

Overhead cost =(Overhead cost / Direct Labor) *Job W Direct Labor

Overhead cost=($6,365 / $9,500) *$4,900

Overhead cost=0.67*$4,900

Overhead cost=$3,283

Therefore the overhead cost be added to Job W at year-end is $3,283

4 0
2 years ago
A firm organized on the basis of retail customers and wholesale customers utilizes the concept of departmentalization by
lilavasa [31]

Answer:

Customer

Explanation:

In customer departmentalization, departments are basically separated from each other based on the types or groups of customers that needs to be handled or dealt with. For instance, customers can be classified under types such as, bulk purchasing or wholesale customers, retail customers, etc.

To handle them in a better way each group of customers needs different tactics and strategies. Therefore, customer deparmentalization serves the purpose of the firm that is organized on the basis of retail customers and wholesame customers.

3 0
3 years ago
A letter from Coulton Engineering Company dated September 12 is to be filed in the Coulton file. How should you arrange it in th
ArbitrLikvidat [17]
<span>C. By date with the latest date in the front of the folder </span>
4 0
3 years ago
On January 1, 2018, Allgood Company purchased equipment and signed a six-year mortgagenote for $186,000 at 15%. The note will be
Ne4ueva [31]

Answer:

The correct answer is A: interest= $21048

Explanation:

An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. While each periodic payment is the same amount early in the schedule, the majority of each payment is interest; later in the schedule, the majority of each payment covers the loan's principal.

Each payment is the same ($49,148), but the proportions of interest and capital pay changes. The interest proportion decreases from pay to pay.

Loan= 186000

i= 15%

n= 6 years

First pay:

i=186000*0,15=27900

amortization= 49148-27900=21248

Second pay:

i=(186000-21248)*0,15=24712

amort=49148-24712=24436

Third pay:

i=(164752-24436)*0,15=21048

amort=49148-21048=28100

While payments progress, interest decreases and amortization increases.

5 0
2 years ago
A resident of Minnesota is in the 28% federal tax bracket and the 4% state tax bracket. This person must pay both federal and st
vredina [299]

Answer: A) Federal National Mortgage Association pass-throughs.

Explanation:

From the question, we are informed that a resident of Minnesota is in the 28% federal tax bracket and the 4% state tax bracket. This person must pay both federal and state taxes on Federal National Mortgage Association pass-throughs.

It should be noted that the securities of most government agencies in the United States are typically exempted from paying the local and state taxes but they have to pay federal taxes.

4 0
2 years ago
Other questions:
  • An employer whose basic approach to leadership consists of statements like do right, and ill reward you. mess up, and ill punish
    6·1 answer
  • Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 5,000 toy action figures to be
    14·1 answer
  • A company can gain a cost competitive advantage by:
    7·1 answer
  • Lorenzo just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down payment. He's deci
    11·1 answer
  • If Ms. Anniston transfers $1,000 from her checking account to her savings account, then__________.
    13·1 answer
  • Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by
    8·1 answer
  • PLEASE HELP!<br> Question: Give an example of a Trademark in Business.
    5·1 answer
  • The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Rest
    12·1 answer
  • Select the statement that is true of common stock. Companies issue dividends to common stockholders before preferred stockholder
    8·1 answer
  • Developmental tasks: question 1 options: a) always involve children. b) occur at all stages of the life cycle. c) always impede
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!