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Andrej [43]
2 years ago
13

According to the liquidity preference model, if the Federal Reserve increases the money supply, the equilibrium interest rate __

______, and this leads to _________ in the quantity demanded of nonmonetary interest-bearing financial assets.
a) falls; an increase.b) falls; a decrease.c) rises; an increase.d) rises; a decrease.
Business
1 answer:
Nataly [62]2 years ago
3 0

Answer:

b) falls; a decrease

Explanation:

According to the liquidity preference model, if the Federal Reserve increases the money supply, the equilibrium interest rate <u>falls</u> and this leads to <u>a decrease</u> in the quantity demanded of non-monetary interest-bearing financial assets.

Liquidity preference model which is also the Keynesian theory of money demand, says that people need money for three major objective transaction motive, precautionary motive, and speculative motive.  The increase in money supply decreases interest rate and increases the quantity of money demanded and the decreases the quantity demanded of non-monetary interest-bearing financial assets.

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Gourmet Shop purchased cash registers on April 1 for $18,000. If this asset has an estimated useful life of five years, what is
algol13

Answer:

$17,400

Explanation:

Given that,

Purchased cash registers on April 1 = $18,000

Estimated useful life of asset = 5 years

Using straight line depreciation method,

Depreciation:

= (Original cost - Salvage cost) ÷ Estimated useful life

= ($18,000 - $0) ÷ 5

= $3,600 per year

Two months depreciation:

= Depreciation per year × (2 ÷ 12)

= $3,600 × (1 ÷ 6)

= $600

Book value of the cash registers on May 31:

= Original cost - Two months depreciation

= $18,000 - $600

= $17,400

7 0
2 years ago
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Elza [17]

Answer:

two qualities candace should look for...

Explanation:

understanding- she should look for someone who is understanding of her money and her time, with out that the financial advisor could be very careless

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3 years ago
Which of the following is a feature of a credit card ?
Sergio [31]
The answer should be D if not it's A
5 0
3 years ago
Richard Beck has a life insurance policy which he has modified to include an accidental death benefit payable to his son and dau
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Answer:

The correct answer is number (1): double indemnity provision.

Explanation:

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3 years ago
On January 10, Chen Co. issued an $80,000, 6%, 90-day note payable to Rao Co. Using a 360-day year, what is the total interest e
Yanka [14]

Answer:

d. $1,200

Explanation:

The computation of the interest expense is shown below:

= Principal × rate of interest × number of days ÷ (total number of days in a year)

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