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3 years ago

Increasing the amount of money in the economy results in

Business

1 answer:

Elena-2011 [213]3 years ago

7 0

Answer:

By increasing the amount of money in the economy, the central bank encourages private consumption. Increasing the money supply also decreases the interest rate, which encourages lending and investment. The increase in consumption and investment leads to a higher aggregate demand.

Explanation:

It is important for policymakers to make credible announcements. If private agents (consumers and firms) believe that policymakers are committed to growing the economy, the agents will anticipate future prices to be higher than they would be otherwise. The private agents will then adjust their long-term plans accordingly, such as by taking out loans to invest in their business. But if the agents believe that the central bank’s actions are short-term, they will not alter their actions and the effect of the expansionary policy will be minimized.

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Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $5.10 per share. If the required

DerKrebs [107]

Answer:

PV = $78.46153 rounded off to $78.46

Explanation:

A perpetuity is an unlimited series of cash flows that are of constant amount and occur after equal intervals of time. As they are unlimited in number, we say that they are perpetual. A perpetual preferred stock can also be said to be in form of a perpetuity as it pays a constant dividend after equal intervals of time. To calculate the price of the preferred stock, we use the present value of perpetuity formula which is,

PV = Cash flow / r

Where,

r is the required rate of return

PV = 5.1 / 0.065

PV = $78.46153 rounded off to $78.46

4 0

3 years ago

Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?.

nirvana33 [79]

Consumer and producer surplus.

6 0

2 years ago

Harry has worked as a general manager at Gringard, a supply chain management firm, for eleven years of his professional life. Gr

Zepler [3.9K]

Answer:

C. He will most likely need to work variable shifts so that he can connect with all his team members.

Explanation:

He will most likely need to work variable shifts so that he can connect with all his team members.

5 0

2 years ago

you deposit $3000 each year into an account earning 4% interest compounded annually. how much will you have in the account in 30

Elan Coil [88]

The final balance is ₹9,730.2. The total compound interest is ₹6,730.2. If the deposit is $3000 each year and 4% interest.

<h3>How to calculate compound interest ?</h3>

Compound interest is the addition of interest to the principal sum of a loan or deposit, or interest on interest plus interest.

The formula for annual compound interest is as follows:

FV = P (1+ r/m)^mt

FV - the future value of the investment, in our calculator it is the final balance

P - the initial balance

r - the annual interest rate

m - the number of times the interest is compounded per year

t - the numbers of years the money is invested for

initial balance P = $3000

number of years t = 30

Interest rate r = 4%

interest is compounded m = 1

The value of your investment after 30 years FV = ₹9,730.2

The profit will be FV - P = ₹9,730.2 - $3000 = $6,730.2

The final balance is ₹9,730.2.

The total compound interest is ₹6,730.2.

To learn more about compound interest refer :

brainly.com/question/24274034

#SPJ4

8 0

1 year ago

What happens if an economy operates at a short-run equilibrium output that exceeds its long-run capacity,

g100num [7]

Answer:

There would be an increase in the price of resources for production

Explanation:

When an economy decides to operate at a short-run equilibrium output the cost of obtaining resources for production of goods and services would increase. and this increase in price of resource will cause the short run aggregate supply curve ( SRAS )to shift to the left.

The short run aggregate supply is the total goods and service produced in an economy at different prices while some of the resources used for the production of the goods and services are fixed

8 0

3 years ago

Read 2 more answers