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Svet_ta [14]
2 years ago
7

When the price level decreases, _____. rev: 06_12_2018 Multiple Choice the demand for money falls and the interest rate falls ho

lders of financial assets with fixed money values decrease their spending holders of financial assets with fixed money values have less purchasing power there is a decrease in consumer spending that is sensitive to changes in interest rates
Business
1 answer:
beks73 [17]2 years ago
6 0

Answer:

The demand for money falls and the interest rate falls.

Explanation:

Price level can be described as the evaluation of the amount in which goods and services are sold in the market. A change in the price level can greatly affect the demand of a customer either positively or negatively.

A decrease in the price level enables a customer to purchase more products and at the same time save some amount of money, this results in the reduction of interest rates.

When the price level reduces, individuals will need less amount of money to buy the same quantity and type of product.

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Last month Brent lost his job at the auto parts factory because his factory, like many others, relocated to Asia. Brent has been
Aleonysh [2.5K]

Answer:

Structurally unemployed

Explanation:

Structural unemployment occurs due to changes in economic situations, or a mismatch of available jobs and available skills. Structural unemployment takes a long time to resolve as it may involve retraining of individuals.  Advance in technology has contributed most to this form of unemployment as machines and robots are replacing human beings.

For Brent, the employer has shifted to Asia due to economic benefits available there.  Probably, other firms in that industry have relocated, that's why Brent is unable to find another job.  Brent's skills do not match the currently available positions in his town.

7 0
1 year ago
Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate
alisha [4.7K]

Answer:

$9.7408

Explanation:

For computing the current stock price, first we have to determine the cost of equity which is shown below:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Cost of equity = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.5% + 1.70 × (10.50% - 4.5%)

= 4.5% + 1.70 × 6%

= 4.5% + 10.2%

= 14.7%

Now the current stock price would be

Cost of equity = Next year dividend ÷ current stock price + growth rate

14.7% = $0.79875 ÷ current stock price + 6.5%

14.7% - 6.5% = $0.79875 ÷ current stock price

8.2% = $0.79875 ÷ current stock price

So, the current stock price would be

= $9.7408

8 0
2 years ago
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three ac
lakkis [162]

Answer:

$277.32

Explanation:

The computation of the company charged for break even is shown below:

Particulars                                Ruiz Wedding                Rate                         Amount

Number of reception guests     73                                $0.96           $0.96

Number of tiers on the cake     6                                  $28.92         $173.52

Number of orders                      1                                   $78.19           $78.19

Number of decoration               1                                   $24.65          $24.65

Total                                                                                                       $277.32

We simply multiplied the ruiz wedding with the rate so that the final amount could come

3 0
2 years ago
A development company is advertising that the mean area of the apartments in a new complex is 1,450 square feet. The complex con
Doss [256]

Answer:

E) Select at random 50 apartments from all the apartments in the 10 buildings.

Explanation:

Unbiased sampling is when each element has an equal chance of getting picked out of a sample population.

In this case, a random selection of 50 apartments from all the 10 buildings gives each apartment an equal probability to get selected while all other options introduce some sort of a bias. There fore the option that gives unbiased opportunity of selection is option E.

Hope that helps.

4 0
2 years ago
Identify which party is responsible for reporting directly to the fda the investigator's financial interests with the sponsor:
dedylja [7]
THE SPONSOR is responsible for reporting directly to the FDA, the investigator's financial interest with the sponsor. The investigator is expected to provide the sponsor with the necessary information and the sponsor will report this directly to the FDA.
8 0
2 years ago
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