The purpose for holding money in economic in classified into:
- transactional motive
- precautionary motive
- speculative motive
<h3>The Drop-downs includes:</h3>
- When price levels rise, people hold onto cash. - Speculative motive
- When interest rates are low, people forgo interest income - Speculative motive
- When aggregate income is high, people hold cash to buy goods that are plentiful and cheap - Transactional motive.
- When interest rates are low, people speculate that they will soon increase - Speculative motive
- Andy decided to hold his money in cash, as he did not earn sufficient money as income from interest. - Speculative motive
- Ben is a consumer and decides not to purchase luxury items because they are too expensive - Speculative motive
- Chad thinks it to be a good opportunity to buy the products from the market as the supply has increased. - Transactional motive
- Daphne is holding onto her money as she feels that the interest rate will go up soon - Speculative motive
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Income taxes, payroll taxes, and corporate income taxes.
Income taxes = individual employees pay out of their earnings
Payroll Taxes = social security tax, medicare, and unemployment tax. These are paid partially by the employees and partially by the employers
Corporate income taxes = paid by businesses as a percentage of their profits
Answer:
b.
Explanation:
Inventory control models assume that demand for an item is either independent of or dependent on the demand for other items. This is because the amount of stock that the company should have for an item depends on the demand for that item, but at the same time demand for that item will sometimes vary depending on the demand for other similar items which may or may not be taking market share away from the first item.
Answer:
With Yani's counter-wage offer, the insurance firm will likely reject his counter-offer and, in the extreme, withdraw the employment proposal with the firm.
Explanation:
As indicated in the question, the insurance company is a monopsony. A monopsony is the single buyer in the marketplace. This means that there is no other firm that can employ Yani in his Connecticut hometown. He must look for another job in another environment outside his hometown or condescend to accept the lower than hoped-for salary by the large insurance firm.
