The link between Money Supply and Inflation. ... Increasing the money supply faster than the growth in real output will cause inflation. The reason is that there is more money chasing the same number of goods. Therefore, the increase in monetary demand causes firms to put up prices.
Answer:
The correct answer is letter "A": functional.
Explanation:
Functional changes are implemented in products to improve the benefits of an existing good or service or to fix a recurrent problem the same product used to have. In the case of Sony's design for the new plasma television, it would allow the television's remote control to be easier to use, improving the consumer experience with the good.
Answer:
c. firms are free to enter and exit the market.
Explanation:
A monopolistically competitive market is a market in which there are a lot of organizations that sell products that are similar and it tends to be easy to enter and leave the industry. Because it is easy for a company to enter the market and there is a lot of competition, in the long run the economic profit is zero. According to this, the answer is that in the long run, profits in a monopolistically competitive market are zero because firms are free to enter and exit the market.
The other options are not right because a monopolistically competitive market has zero profits because of its low entry barriers and amount of competitors not because of government regulations or an illegal agreement between organizations to control competition. Also, in a monopolistically competitive market the products are similar.
Let’s just say that the entire year is 365 days. So, we need to divide the APR (13.50%) to 365. This gives us a value of 0.037% and since the the billing cycle is 30 days, we need to multiply 0.037% to 30 to get it’s periodic interest rate. Therefore, the periodic interest rate is 1.11%.
