Answer:
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Explanation:
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Complete Question:
Suppose an event has occurred that has decreased money demand. This will cause the equilibrium interest rate to: Multiple Choice decrease, but equilibrium quantity to remain constant. decrease, but equilibrium quantity to increase. increase, but equilibrium quantity to decrease. Increase, but equilibrium quantity to remain constant.
Answer:
Suppose an event has occurred that has decreased money demand. This will cause the equilibrium interest rate to:
decrease, but equilibrium quantity to increase.
Explanation:
Money demand equilibrium occurs at the interest rate at which the quantity of money demanded equals the quantity of money supplied. This implies that all other things unchanged, a shift in money demand will lead to a change in the equilibrium interest rate. This result will come about because with the reduced interest rate, more consumers and businesses will be angling for more loans.
Answer:
I believe it's...
A) Watching your favorite TV show on a Saturday evening.
and
F) Free riding on a group project.
Explanation:
Coordination problems are problems that result in multiple outcomes, so the one facing the problem(s) must act carefully.
Answer:
Assets: increase by 19,500,000
Liablities: increase by 19,500,000
Equity: no effect
Explanation:
cash proceeds: 19,500,000
face value: 20,000,000
discount 500,000
As the bonds issued were sold below par there is a discount.
the entry will be:
cash 19,500,000
discount on BP 500,000
bonds payable 20,000,000
This will generate an increase on assets for 19,500,000
and increase liablities for 19,500,000
The issuance of bonds do not generate revenues or expenses. So the equity remains unchanged-
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